The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-10-09
TILE REIL TIlOUBLE.

The impression obtains among quite
a large number of Kansas people, prin
cipaIly among farmers, that the rate
of interest OH money is too high in this
state; that the legal rate of per cent
even, which IS the lowest rate at which
money can be borrowed, is too high,
and that the rates charged by banks
varying ali the way from s and 8 Per
cent in the eastern third, to g and i s
ard p per cent in the western two
thirds of the state, are too high.
This, however, 50 far as the legal
rate is concerned, and the discount
rate in the eastern third of the state,
is not true. 1t is not excessive nor
burdensome. The bank rates ia the
western part Of the state are uuques-
tionubly excessive, bordering on eNtor-
ton III many Instances, but per cent
on ordinary commercial paper and 5
OF per cent on bank discounts is not
bigh, The rate of interest on farm
mortgages has been high, especially
when the commissions were added.
/ But even these rates have Leen steadily
lowered until now they are not much
more than half as high rs they were
"a few years ago. Seven per cent as
the legal rate OF interest and or even
10 per cent for bank discounts are not
much if any out Of the way, and nc
reasonable complaint can be made
against these figures; of course, the
excess beyond this figure, even in those
sections where the securities are not
gilt-edged, are too high and should moi
be maintained, because, only in rare
Instances, can people afford to Pai
more than 20 per cent for money.
It is conteudeI by some people tina
The existing rates of interest on Dor
rowed money i'll Kansas is one of
lumber eff causes of the prevailing
disccntent among the agriculture
classes; That is- perhaps, true and ye
The ground of this complaint, excep
+ It's we have ated, IN western Kansas
2 is hardly tenab!e.
I The greatest trouble is rather TIA
, unequal distribution Of money, pre-
= duced by legislation almost exclr
q sively favorabIS TO eastern interests
Is the extorting of money by variou
forms of Legislative skullduggery froI
IS Kansas. and " estern farmers generally
q to enrich eastern manufacturers an
l. CAPITALISTS to build up and maintsii
5 eastern enterprises, and TO saengthe
Ii the ptutocratic control of the finance
- and commerce Of this country; that
II tie trouble, and that more thu,
excessive local rates OF interest, furnisl
Il in large measure, both the Occasiu
t and motive for popular revolt.
IS By this sort OF legisldtioff westei
K farmers, as has been well said, al
compelled to sell, except in unusu
Seasons like the present. at free traI
is prices, and buy everything at McKn
ley prices. Snd under this sy stem, q
{ east has grown enormously rich-s,
e Of all equitable proportion 80 the well
> Of the west.
Is The rates OF interest could rema
4 Mt per cent as the legal rate, an
even 10 per cent as The bank rat
8, aud if McKinleyfszI we've suppialt,
ri by reciprocity with all nations, Sc In
D our farmers could sell their produc
l. IN all the markets of the world, II
"a buy what they need at prices fixed
u The laws of supply and demand. on
le basis OF free trade competition, Wi
all trusts wiped out, and all sHecl
legislation for the few forever end
W in this country, with all ineOm
Of beyond say 1900, taxed, with
% adequate supply Of legal tenders. vi
81 an equitable system OF assessment "a
re tazation adopted, aud railway eorI
he trations brought under proper control
OF the seFveats rather than the mastt
IS sf tise peopLs-wetif al shis secure
81 the rates of interest could stand II
. and o per cent, and no one would
y oppressed. The re lief Obtained frC
-it the reforms We have outlined yvcU
as saialzssit. Il comparatively triiiing m;
sel ter 10 pay ANA even 10 per cent
OF borrowed money alcRlsoa Slies3slilis
Fine nes sssot.s zt Hd wards & Eobl
a. are AL Al ana 1st'E = sat gUu - Col
Is itI=I sec t4tlais