Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1916-04-27
By PHIL EASTMAN


for the purpose of collectively borrowing money at
lower rate of interest than if they borrowed sepa-
rately The "Landschaften,' in 1906, had almost
a billion dollars in bonds outstanding and not one
of them owned outside the German empire AS
an investment they are 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
sas Rural Credit Association, began his work in Kan
sas 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 upon 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 were carrying over
$751; 10000 on mortgages and the average rate of
interest was about per cent Under the old sys-
tenn if a farmer wished to borrow money for improve
ment purposes by mortgagng his farm, he not only
had to pay interest varying from to 10 per cent
but he could obtain loan for longer period than
from one to three years. If drouth or flood over
took him, making it impossible to pay the mortgage
when due, the loss of his farm often the result
In the early days of Kansas when millions of
of rich fertile prairie awaiting homesteadng and
development the influx of settlers brought persons
all sections of the country most of whom brought
no security and could give none. Everything then
was in formative state and it natural that in
terest rates should be high because land cheap
and loans hazardous. But with the develop
ment that has interviewed and the extraordinary en-
hancement in the value Of farming lands it was an
anomalous condition that forced Kansas farmers with
the best security in the world, to pay higher inter-
est rates than other business men.
What was true of Kansas true to more
less greater extent in every other state 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 estab
lishment of rural credits, that the financial system
of the United States has been built up around its
mercia and industrial interests while the agricul-
tural classes have been left to shift for themselves
in the money markets, High finance readily devised
a plan by which railroad could borrow money for
80 years by issuing bonds its tracks and other
equipment but plan devised whereby the
farmer could obtain a long time loan by issuing
bonds on his farm Former President Taft address
ing assembage of of the states in 1872
said: "The farmers of the United States are pay
ing higher rate of interest than any other class
of business men" Yet these very farmers have adj
mttedly the very best security in the world-ther
rich lands. Plainly, something wrong when such
conditions prevailed
A 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
was quick to see that here a system that would
relieve the farmers of the disadvantages they suffer
ed when they sought loans and that the farmers of
Kansas would promptly avail themselves of member
shin in an association was. therefore.