Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1859-01-22

Ure OF crops ana depression OF prices
for 1853, the actual clear profits of in
dustry and capital cannot have exceed
ed three per cent. Seven-eighths of the
mortgages on record in the State, ex-
ceptlng those given for loans of school
money, call for annual interest at twelve
per cent. above the clear profits which
the property mortgaged has been able
to produce. It is estimated that at
least half the cultivated farms, and
more than two-thirds of the village and
city property in the State are encum-
bered by mortgages. This evil is so
widespread as to become matter of
great public Importance, for before
these mortgages can all be paid it is
plain that thousands must be pecuniar-
lily ruined
Interest at seven per cent. Is paid on
over three millions of dollars, on loans
from the School and University Funds,
and on amounts due for lands sold, be-
longing to those funds. This sum is
secured on real estate, valued at fifteen
millions Of dollars. And yet this great
sum is estimated as q small amount
compared with the amount ofmortcage
lines for money loaned at much higher
rates OF interest; and this is entirely in
dependent of the large amount of rail
road mortgages in the State.
Making new loans at the same OF ad-
dltlonal rate of interest, will not pay
the debts, but render ruin the more
certain. Loans of money at II per
cent. when the interests promptly paid,
and loaned again, double to the lender
in less than six years, while agricultu-
raj capital, as 4 whole does not double
in less than twenty. Interest is the
rust that is rapidly consuming our peo-
pie. 1t not only eats away our Surplus
profit, but in q majority Of cases is eat
ing deep into our capital. 1t is unaf-
tected by poor crops and worse mar
kets. 1t gathers strength, and weight
and oppressive power continually,
whether we sleep or wake; while VIC
rest as we'll as while we labor. There
must come a bitter end to such q poll
.cy. It will be objected, as it has been
in regard to another law, that any
change limiting the rate OF interest TO 4
living figure will drive away and keep
away foreign capital We must learn
to look these evils right in the face
While it will not prevent foreign capi-
tai from coming here to be invested
IN property, at reasonable rates, it very
likely may prevent some foreign cap-
tai coming here to be loaned at high
rates Of interest. Any law that will
prevent any more foreign capital com
ing to this State to be loaned on long
time, at high rates Of interest, will be a
blessing to the State. We cannot af-
ford to pay it, We never can pay it
We must stop paying it or attempting
to Pay it, or foreign brokers and mon
ey lenders will, bye and bye, own most
Of the valuable property in the State.
Wealth can never be generally difused
here as it is III the New England States
until we learn to do as they have done,
to depend upon our own resources, and
live within our means. It is with a
whole community as with individuals,
substantial, honesty acquired wealth.
cannotb accumulated blythe use ofbor-
rowed cypital alone. No people who
pay high rates Of interest can never
have money 10 loan. IF the farmers of
the New England States had borrowed
from Great Britain, for the last half
century, large amounts Of money at high
rates OF interest as are paid here, they
not only now would have bad no money
to loan, but they would no longer have
any securities upon which to borrow
A million Of dollars brought into the
State and loaned at II per cent. in less
than six years takes ont of it two mil
lions. No people who begin by paying
high rates Of interest for money will
ever have money to loan. Tn older
States where and per cent. are COM
mon rates, and where large amounts
seek investments, on long time at such
rates, there is less risk in borrowing
They do not pay any more, because
they have learned by the experience Of
three quarters of q century that they
cannot afford it.
The contracts already made must be
fulfilled. There is DO such thing as re-
pudiation known to our people, and no
such thing must be known. While
there may be equitable defences as to
mortgages or contracts tainted with
fraud, the Legislature cannot make de-
fences to contracts already executed
and in force. But the Legislature can
and ought to interpose by the most
stringent measures to prevent in future,
the recurrence of any such calamities
as are now upon us. We can get all
the money we earn, and the people
must learn to confne the expenses of
living within the avails Of their labor,
or legitimate ayocations and employ
ments. Through all the villages and