Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1916-04-28
By PHIL EASTMAN

country. The land bank is nothing less
than organization of farmers associated together
for the purpose of collectively borrowing at
lower rate of interest than if they borrowed sepa
rately. The "Landschaften," in 1906, had almost
Billion dollars in bonds outstanding, and not one
OF them was owned outside the German empire AS
investment, they esteemed even more highly
than German government bonds. The "Landschaf-
tens" rate of interest is per cent
When Mr. L. w. Moody, who organized the Kan
Rural Credit Association, began his work in Kan
to interest the farmers of the state in rural
credit association he found the time and conditions
ripe for his efforts Farmers were already giving
thought to the matter based the reports of the
National Commission which congress had sent to
Europe to make study of rural credits Further
more, he found the actual need of rural credit in
Kansas to be emphatic and general Statistics he
gathered showed that the farmers carrying
100000 mortgages and the average rate of
about per cent Under the old
if farmer wished to borrow money for improve
purposes by mortgaging his farm, he not only
had to pay interest varying from to 10 per cent,
but he could not obtain loan for longer period than
from one to three years II drouth or Hood over
took him, making it impossible to pay the mortgage
when due the loss of his farm often the result
the early days of Kansas, when millions of
rich fertile prairie awaiting demonstrating and
development, the influx of settlers brought
from all sections of the country of whom brought
security and could give Everything then
in a formative state and it natural that in
terest rates should be high because land cheap
and loans hazardous. But with the develop
that interviewed and the extraordinary
IL
condition that forced Kansas farmers with
the best security in the world to higher inter-
est rates than other business men,
What of Kansas true to
greater in every other The fact is
and it has been admitted by the banking interests
of the nation and emphasized by President Taft
and President Wilson in their advocacy of the esab
lishment of rural credits, that the financial system
United States has been built around its
mercial industrial interests while the agricul
tural classes have been left to shift for themselves
money markets. High finance readily devised
a plan by which railroad could borrow money for
so years by issuing bonds its tracks and other
equipment, but plan devised whereby the
farmer could obtain long time loan by issuing
bonds his farm Former President Taft address
assemblage of of the states in 1912,
said: "The farmers of the United States
ing a higher of interest than any other class
of business men, Yet these very farmers have adj
mittedly, the best security in the world-ther
rich lands Plainly, something wrong when such
conditions prevailed.
student of finance and investments, and hav-
ing become interested in the rural credits propa-
ganda emanating from the nations capital, endorsed
by President Taft and President Wilson, Mr. Moody
quick to that here was system that would
relieve of the disadvantages they suffer
ed when they sought loans and that the farmers of
Kansas would promptly avail themselves of member
ship association 1t was. therefore