Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1895-07-17

4 PER CENT LOANS.
THE SOUTH NOW FLOODED
WITH CHEAP MONEY.
Ruse of the GoIdbugs-They Lend
Money to Our Bankers, Who in Turn
Lend 1t Out at Big Interest-The
Plan.

Peoples Party Paper: The news
comes from New York that $1,000, 900
or $4,000, 900 have been loaned to the
banks in South Carolina, Georgia and
Alabama since May 1st at the low rate
of per cent. This money is shipped
down here to make the dear people be-
heve that prosperity has resumed busi-
ness at the old stand and that a con-
tracted currency is a delusion and a
snare. The banks that are borrowing
the money propose to turn it loose in
the south. By preconcerted arrange
ment, however, it will drift into the
hands OF country merchants at per
cent, who will in turn let the farmers
have it in the way of plantation sup
plies at the rate of Is to 20 per cent
interest. OF course, the promoters of
President Cleveland's financial scheme
are behind this movement. 1t is ruse
on the part of the bankers to establish
the idea that money is plentiful and a
change from the present financial sys-
tenn unnecessary. 1t will be observed,
however, that the bankers and mer-
chants are the only ones that secure
clean-cut profit, while the farmers, who
are the real endorsers for the loan, have
all of the burdens to bear and as usual
reap none of the benefits. The New
York correspondent who called atten-
tion to this influx of cheap money goes
into details which are very interesting.
He says:
There have been a large number
of bankers visiting New York from
the states of South Carolina, Georgia
and Alabama since May 1st, at differ
ent times. Probably other southern
states had as many, but most of the
men l am acquainted with are from
the states named, and they are here
for the purpose of arranging, whether
preconcerted or not, to get currency
to carry to their respective state.
am informed by one of the intelligent
men above named that they have Sc
cured loans from bankers in this city
since the 1st of May amounting to
100000 or $SOO0000 They get it
for per cent until the 1st of October,
with the privilege of renewing at that
time on 80, so and 80 days at the same
rate of interest. In conversation with
one of these bankers to-day, he in
formed me that it would make times
better in the south when this money
was turned loose.
How do you propose to turn it
loose? l inquired.
oh he said, we can turn four
times that amount loose in our states
at a good rate of interest. We will
lend this money, due say October 1st,
at to 1219 per cent per annum, which
you see will be quite a nice profit for
us on the amount loaned
But can you,' l asked, make these
loans on good security?'
Just as good as anybody would
wish. In the first place a great deal
of this money will be loaned to mer-
chants who sell what is known in our
section of the country as time goods
to farmers. These merchants will
pay us, say per cent. Then they will
sell goods due in October to planters
and farmers and get Is or 20 per cent
for the supplies
"'Then you think this process will
make good times?'
''Well, he said, it will give the
people what they want-that Is,
money
" But can they make any money
by paying this high rate of inter-
est?'
"'Of course the merchants will.
They pay per cent for it and if they
sell to the farmers goods on time,
the farmers will have to pay a very
high rate of interest, it is true, but
they can not make a crop without
something to make it with, and while
the interest these farmers have to pay
is pretty high, it is not as much as
they have paid in the past and we will
haYe no trouble in disposing of this
money, as l tell you
This is the programme that is be-
ing worked to relieve the pressure in
the south. 1t may bring about tenn
porary prosperity, but in the end,
when the day of settlement comes.
think the farmers will be left pretty
much in the condition they were in
before they borrowed the money;
many of them probably in a worse
fix"