Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1894-10-27
r publicaD state Ticket.
CONGRESSIONAL
Populism a Blight.

T. B. Sweet, of Topeka, president of
the Trust Company of America, with Of
fees in Topeka, Denver and Philadelphia,
said to the Topeka representative of the
Kansas City, Mo, Journal, this;
Il think that it can be safely said that
populism has cost Kansas borrowers over
$5,0OO,0O0 annually in the last two
years by it's damage to their credit. We
began business here in 1873 Then con
servative capital, which is that money
which comes from life insurance compan-
les and savings banks in the east, and
which seeks only the choicest security at
the lowest rates of interest, had not yet
entered the state, and borrowers paid II
per cent and brokers' commission of l
per cent per wear. In 1890, when pop
ulism began its crusade, by the aid of
conservative capital which was then
loaned extensively here, rates had come
down to per cent, with ] to per cent
commission. Since the populists have
gained complete control of the state it
has been impossible to sell Kansas loans
in the eastern market. Out of the very
large number of loan companies which
were operating in this state in 1890, L
do not know of half dozen who are now
loaning in Kansas, and their business is
so small as to be almost imperceptlble.
Eastern people have been told generally
that populsm will soon subside, and for
tkat reason we are enabled to hold off
some foreclosures and to secure some ex-
tensions, but at higher rates than for
merlv. Wherever the borrower can, he
is required to pay by the holder of the
mortgage, and every dollar paid goes
east as soon as it can be collected. Up
to two or three years ago, as fast as loans
were paid, the money was not withdrawn
from the state, but was Immediately re-
loaned to some one else. Now, every
dollar goes back to its owner as fast as
it can get away, and no new money comes
in to take its place.
There is a steady drain of money out
of this state, which is reloaned in Iowa,
Illinois and other states at low rates.
The amount of money that has gone east
from this state in the last three or four
years is without precedent in the history
of this country In 1890 our company
here had over $15, ZOO, 900 loaned in this
state, of which we have sent about S.
600, 900 back to its eastern home. This
company has not placed loan for over
two and half years in Kansas, although
it has loaned largely elsewhere. There
is not one of the several Incorporated
loan companies of Topeka that is loaning
a dollar to-day in Kansas so far as I
know We have defended the credit of
Kansas for years the best we could, and
every loan company in this city has tried
to stem the tide of distrust that popuhsm
has brought against the state. 1t is to
the borrowers interest to keep conserva-
tive capital in the state, for the reason
that when conservative capital wIthdraws,
rates go up and local capital naturally
charges higher rate-and the small
amount of local capital is not sufficient
for the needs of rapidly developing
new state. But eastern capital has gone
and the people are beginning to under
stand what that means to them and when
they see the cause think they will APP
ply the remedy. They will reject the
false financial theories of the populist
party, repeal popuhst laws and restore
the credit of Kansas. Then and not till
then will eastern money return.
Il don't understand how any man who
has any state pride could wish to put
upon his state such conditions of humil-
lated reputation and injured credit as
Kansas has suffered from in the last few
years"