The Washington socialist. [volume] (Everett, Wash.) 1914-1915, 1915-01-14
GOOD MONEY is NOT EASY
TO BORROW
THREE PER CENT LOAN SHARKS
TRYING 70 ROB FARMERS

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With good prices In sight for non
perishablo farm products, the farmer
who Ia short on the ready money
feels safe in borrowing few hundred
plunks TO tide him over few months
shortage, The gink with the easy
payment plan Is right there to serve
him right
Good money is worth 6 per centum
anywhere, or more; So comrades Of
the farm, don't get into any OF that
3 per cent bunkum.
| You see it's like this; Certain more
or less fraudulent companies, gamb-
| ling on the rural home-owners credit
ity and needs, are offering to lend tfe
/ farmer money, on good security IT,,
say, per cent interest, and to allow
the borrower to repay the loan in
easy monthly installments on the
amortization plan
SO many farmers have fallen for
this alluring scheme, 1t becomes nee.
essary to warn them of the pitfall
The plan of these money-sharks is
about like this:
How It's Done.
! After writing for further details
the company sends you an application
blank, which you sign.
In few days you receive from
such company contract for the
tract which you receive is duly signed
by the officers of the company. Then
you realize that the application signed
by you and the contract signed by the
officers of the company together con-
stitute valid contract. and that you
are now in for it.
Under the terms of the contract you
are to begin at once paying off the
debt of, say, $1,000 at the rate of SO
a month, but you have not got your
$1,000 yet Moreover, you do not
know just when you will get it. The
only thing you know Is that you have
got to go right on paying so month.
You have, however, the promise that
J whenever the company has the money
to spare. you will get your loan. An
other way of saying the same things
is that when your turn comes, you will
get it. This means that such a com
| he nd
that there are several other gentlemen
whose turns come before yours. AS
fast as the company gets money it
lends it out to these men each in his
turn. When your turn comes, if the
company lasts that long you will get
your money.
Now, where does this kind of COM
pany get the money which it is going
to lend to you and the other gentlemen
who have signed these contracts?
Why, it gets it from you and those
same gentlemen, and from no one else.
Speaking to all of you collectively,
it says, in effect, Gentlemen, this
company has no money of it's own,
| but If you will pay your money into
it's treasury, we will then be glad to
lend it back to you, if you will give
good security, on very favorable
| terms, indeed"
If such a company ceased getting
new contracts, it could not lend you
your thousand dollars until you had
paid in a thousand. 1t has no other
source of income, and it can not
create something out of nothing. If it
continues to get new contracts after
| yours, then it can take the money
paid in by those who follow you to
! lend to those who precede you. In
this way your turn may come before
! you have paid in quite the full amount
which you expect to borrow But
those who follow you will have to wait
still longer on that account. If new
applications should sign up rapidly
and in large numbers, and begin pay
| ing their good money into the com
pany, the company may then be able
to give you your loan tolerably early.
But that only postpones the evil day
Those who follow you in such num-
! bers, will have to wait longer and
longer, unless the applicants continue
increasing in a geometrical ratio. But
the longer this sort of thing goes on
| the greater will be the smash when it
| comes.
Moral: Don't accept any easy
money. It's too dear.