People's Pilot, Volume 4, Number 34, Rensselaer, Jasper County, 16 February 1895 — THE CURSE OF INTEREST. [ARTICLE]

THE CURSE OF INTEREST.

the Faarttoa of Banking Bn AdMlalatered by and for the People. The Philadelphia Evening Item, a dally paper of 200,000 circulation, publishes the following brave and lucid editorial utterances: “There is a halo of glory and ‘renown* around the brow of the bank president, which requires analysis in order to understand its true worth. “In England this halo is far larger than in this country; mainly, beceause we have had so many wildcat bank presidents in our midst who have thrown considerable dirt upon the profession. “In England the bank president is recognized in society aq the next door to a lord, and in cases he, in the general estimation, takes rank with even higher titled people. “All this ‘glory’ is part and partial of that which belongs to the pawnbroker, nothing more or less. "Now, the only difference between the bank president and the pawnbroker is the size of the loan; there is no other. “If it be said that the bank president does not charge usurious rates of interest, it is replied here that such a speaker is not very well posted in the rates charged in this country in distant and outlying districts; a few years ago 40 per cent was common enough in Texas and elsewhere, and thought all right by neighboring national banks; but thia rate “busted" the borrowers in a very short time. During the last few years the rate of the same bank presidents has been reduced 30 per cent, and even 15 in cases, and all these rates were to farmers who gave their property in security, property they then held free from incumbrances; in other words, they gave strictly firstclass security. "Even the 6 per cent which prevails here in the east is greater than the earnings of the average industry. Statistics prove that statement beyond all reasonable question. "This is well known and admitted by any well-infromed Insurance company.

"Therefore what is the difference be ( tween the pawnbroker who swampa his 1 victim inside of a few days or months, and the bank president who is gradually but surely sapping the life blood out of industrial enterprise? "It is high time that the ’halo and glory’ surrounding the banking business should be relegated to the rear, because it is greatly the cause of the ignorance of the people as to what these usurers are actually doing in their own behalf and at the people's expense. "A large part of the press which supports these usurers really toady to this ‘glory and halo;’ they are now naming it 'conservatism;' but this word is used to denote precisely what the average pawnbroker is doing, nothing more nor I less. “There is nottrng whatever of a per- 1 sonal nature in this article, its only purpose being a clear stste’r.ent of facts which the people shuld ‘omprehand for their own'financial p. e-ierva-tlon just as soon as possi'ile. "Every one of these money lenders should either invest their money in the industries of the country, and take their chances with producers, manufacturers and traders, or openly retire ■ from the field of money leaders, for i under the prevailing system they 'earn' I nothing—except, perhaps, in clerk work, an occupation that forms a very small fraction of the usury t ley impose upon all for-'.s of trade tor an accommodation which can far be ter and at a greatly decreased cost be c n ducted by the government. "The day is not far distant when it will be a disgrace to an honest man to demand Interest, ' beyond actual cost for the use of loaned money.”