The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-08-11
Loans at Low Rates of
Interest ana Investing Pro-
cecds in improvements
BRYAN A FALSE PROPHET
HIS PREDICTIONS OF FoIR YEARS
AGO HAVE ALL FAILED.
Western Agricuiturists. Instead of he
ing Tbrottlcd by the Money Pow
er. Are Now It's Masters.
special to the Indianapolis Journal

CHICAGO. Aug. l0.-In the opinion OK
financial experts the farming indebtedness
throughout the middle West is larger. IL
anything, than IL was ten years ago. This
view is directly contrary to that commonly
entertained. This fact. however, docs not.
as might be supposed AT first glance. mean
that farmers are hard Up. Directly the re-
verse is the case. There has never been q
time In the history of the country when
farmers have been as prosperous as at the
present moment. Their condition has inn
proved wonderfully within the past three
years. They nave had three successive
good crops, and the fourth. which is being
harvested. is fully up TO the average OF the
three preceding years, except in n part OF
the s~pring-wheat region northwest OF Min
neapolis. With the proceeds OF these sue
cessive great crops the farmers have been
able TO put themselves in splendid condi-
ton. Instead, however, OF paying on and
wiping out their indebtedness, they have
been refunding IL at a lower rate of inter-
est and putting the money In improve
ments. precisely as progressive merchants
and manufacturers would do under SIM
ilarly favorable circumstances.
There is money enough in the West to
pay every dollar Of debt owed there. That
it is not so paid off argues not that farmers
are pronigate or unable to see the advan-
tages Of a clean balance sheet. but that
they ar, awake to the modern spirit OF
enterprise and bound tn make the best OF
| their opportunities. From being borrowers
from necessity and to tide over difficulties
| they have become scientific borrowers.
They come into the open market and buy
| money as a merchant would buy a stock OF
| goods, looking about for the cheapest arti-
Gle and for the best terms.
The farm indebtedness in the States OF
Ohio, Michigan. Indiana, Illinois. Wiscon-
sin, Minnesota, Iowa, Missouri, Kansas and
Nebraska is supposed to approximate sza.-
COG, 000. This figure is rather above that
| presented in the census of 1880, which was.
| approximately. $500, OO0. 600. Throughout that
| section of the country ten years ago the rate
of interest ranged from 6 per cent. IN Ohio
| tn per cent. west of the Mississippi on first
| class farm mortgages. Now il is impossi-
BILE for wholesale lenders of money to OBJ
tain more thar 5 per cent. from this class
OF borrowers. and special deals have been
| made as low as AZ per cent.
NUN DlClAlE.
This sharp break in interest rates has
| occurred within the last three years Down
to three years ago the money lender dc
| tated terms. Conditions have been COM
| rletely reversed. 1t is the farmer now who
commands the situation. Whereas the
money lender was in the habit of saying to
| the farmer, II will let you have money IN
| such amounts and on such terms as 1 may
| stipulate,'' at Z or 5 per cent. interest. II Is
| the farmer who says 10 the money broker.
II will do business with You IL you VIII iet
me have money as cheap as your sighuor
will. and upon terms which give me the
best of IL, Instead OF you.
The rural country Is full of money OF It's
own, which comes in red-hot compeution
with money of insurance comps mics for IN
estme in farm mortgages. As a rhio
his local money siIghtlE hignSr
| interest than the capital OF the insurance
| economies, FOR the reason that. TIE lencers
icing on the spot. are more liberal IN toe
| matter of amounts ON the securities o.
fered. Outside money will only go into
farm mortgages on the basis of about ONE
half Of the actual valCc of The properly
whereas local capital Is not 30 particular.
and in consideration Of a higher rate OF IN
terest allows borrowers a narrower mar
| gin.
These changed conditions have resulted
in a saving I'm interest 10 the farmers OF toe
States named of not less than s5V0,OO an
| nCdlly. That Is an enormous amount Ok
money. and is an important factor in tire
economic situation. IL is one OF the things
that marks tire difference between COED
times and hard times Ii shows the farmer
in a state of prosperity instead OF distress.
IT shows the farmer I'm the saddle and mas
ter instead of servant. The farmer carries
his chin higher. his eyes are brighter, his
fences are In better rerair. there is a new
coat of PAINT on his house, his wife and
children wear better clothing end HE boys
aye sent away to school or college. instead
of being held down 10 the hard drudgery of
the aeld. and he is generally well-to do in
steal Of driven TO the wall and struggling.
This changed con iition has occurred with
in the short space OF three years.
1t may be said there is no politics In this,
yet the fact that these improved conditions
date from about the time OF the election
of Mckinley Is n coincidence which Ia ever
I'm the mind OF the class especially bene-
flied. The prophecies of evil and aCricul
tural ruin made Ivy Mr.. Bryan four yeors
ago have proved false in every particular
80 far as 1t relates TO the agricultural IN
forests. Consequently the prophet Of evil
at the present tine Is 1iscredited and the
fact asscmes a political bearing OF Iirst
Importance when everything connected
Herewith Is taken into consideration. The
bare record. unadorned by oratory or ar
gument. sufices 70 change the convictions
and views of tens OF thousands OF farmers.
who. IN their distress four short years ago,
turned To unlimited imitation as the only
means OF relief. The full measure OF the
changed condition of the farmers OF the
West L DO not think IL appreciated by the
Bryan leaders. If IL is, they deny Il. Or. 20
Offset n half admission that there may be
something In IL. say the detection in that
quarter will be more than overcome by
gains in the cities. which al the present
time Is n speculative proposition
INTEREST PAID PROMPTLY.
was talking to-day with the represent
ative of one OF the largest farm mortgage
concerns In the United States, a firm
which places tens or millions o. insur-
ance money annually in the great corn belt
of the West. Ills concern keeps I'm closest
touch with every section OF the country lu
which IL makes loans and consequently
his must be accurate. His
story OF the development OF the Western
farming classes during the last three or
four years sounded like a romance almost.
From "A prevailing condition OF hard times.
amounting in many great sections 10 alb
solutc distress. the farmers have gone To
the very forefront OF prosperity. They ara
rich within themselves and only borrow
money because they know they can uoe IL
10 advantage and profit I'm their business.
Happiness and content has taken the place
OF gloom. Irritation and distress. The far
mers are the best satisfied class Of people
I'm the United States according 20 his tCs-
timony. there has been I general increase
In the value OF farm lands. ranging f-os1
10 10 IS Der ccnt-. In some OF tie leading
sections OF Ohio. Indiana. and Illinois. 10
20 10 90 per cent. throughout large areas
In Minncsota. NeOraska. Kansas and iowa.