Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1879-10-03

states made various uses 81 the money.
New Jersey put il in pubic buildings,
one of the court,houSes ina country al.
joining the Hudson River being parti.
ally constructed with il. New York
loaned Il out ON bond and mortgage.
THAI being then the most popular way
ot dlSposlng of il, for the reason that
the speculation IN 1887, tho panic Of
which wear was essentially real.estato
panic, lett owners OF farms and city AMI
town lots high aud dry from the suhsi.
dcnce ot public credit and the strin-
gency Of the money market, The -four
millions of Uncle Sans money came AZ
such n crisis rs n most welcome relief
to this class o, debtors, THE act distr.
huting the money is entitled, IAN act
authorizing Il loan O, certain MONEYS
belonging to the United States deposit.
cd with the State OF New York for safe
Keeping and was passed April 1, 1887,
II directs that the money shall be an.
poruonod among the several countries
at the state according 10 the population
thereof, and provides for the appoint.
mcnt hy thu Governor, IN the usual
way, ot two Commissioners for each
county, to I've known rs "rhe Com.
mlssonerS for leanlnG certain moneys
ct the United States, otc. These Com
miss'oners are usually newly appoint.
e" Ivy each incoming Governor. The
gentlemen now holding the office for
thus county are MorSsrs Il, q. Thomp.
SON and Ambrose Mcneil. Ry the
terms ot the State law The Commission.
erS are empowered To- loan out in each
county tho money apporuoned To each
county on the security of "mortgaros
on improved lands" in the Same
county owned Ivy the borrower; "hut
II the whole sum apporlionod To any
city, or ward shall not he applied for
Ivy the inhabitants ofsaid city, town, or
ward, ' tho surplus may ho apportioned
out to applicants generally, who are to
ho accommodated IN tho order of the
priority of their applications, provided
there is no roas nahlo objection in any
ease To the title or value OF the land
offered MS security, GA this point the
law provides that tho borrower
must have title in fee To such lands
and that the lands shall he free and
clear of MI inoumhranccs, and arc
worth double the amount of the loan.
exclusive Of the buildings and OF the
value ct tho rent N porpotulty, il any
I've charged thereon. Tho loans ARE
made IN sums not exceeding $4,000 in
the city ct New York, and not exceed.
ing 1000 elsewhere in tho state, city or
county. A minimum Of $500 ia fixed
for loans in Now York, and $500 outside
the CITY, l,ana run for periods not To
exceed five years, but half the principal
may I've called IN on u years notice, and
the other half after two years notice.
II was supposed ut frat that the term
improved lands" would dohar unim-
proved real estate, but, on appeal, the
authorities ruled that any city or town
lot cnmo within the description of i'm.
proved lands, and tho money was there
foro extensively loaned ON uptown and
out of town lots in this county. The
state has, hcwcyer, proved Il great loser
by the operation Of this Interpretation
of the law, for tho fund has gradually
dwindled by careless and had invest.
ments from time To time. until in this
county, which was awarded over half u
million dollars III 1888, the sum now IN
the hands Of the commissioners il less
than SlS4,OO0. In Kings coanty the
fund has dwindlod to about 81, 900, tho
result IN great part, Of reckless invest.
ment. Tho law provides that tho loan
shall be first mortgage to the extent
OF not moro than 30 per cent. of the val.
ne ot the property after the borrower
shall have paid of NIL taxes and incum.
brancos of every kind, but in Kings
county M instance ia cited of n loan
which was preceded by mortgage OF
such nh amount M, on its foreclosure,
To render tho state loan worthless. The
excuse given for this lnxity was that the
record of tho first mortgage had been
overlooked. But the chief losses have
been incurred by tho shrinkago in real
estate values aud tho bankruptcy of
borrowers, and their inability TO make
up the deficiency when their property
hns been sold out under foreclosure.
Tho state has fallen owner to good
deal Of the property and has had to sell
II again without recommending itself TO
the extent Of the deficiency. Tho orgi-
nal obligation Of the state TO the United
States IL, Of course, not impaired by
these losses. New York still owes the
bulleu Dthtth tTehhHTy tho IOur mllllOnH
and odd dollars deposited" with 1t in
1897 for safe Keeping" and the other
states their proportion Of the remaining
s28. 600 600. Should congress author.
NC secretary Sherman TO recall this
money there seems TO be no way OF
avoiding its repayment. Had II been
put out at compound interest instead
Of loaned TO the states, IL would now
make formidable sum. Until very
recently money was worth per cent.
per annum. The 2S,000,000 invested at
this rate for tho intervening forty.two
years would, Mt compound interest,
amount TO over $40,000,C coo, the posses.
sion OF which by the treasury would at
present make Sherman considerably
less of candidate for president than
his rsfundirg operations nave conspired
10 do.
Why Kearney subsidized.
The Oakland (Cal) Tribune gives the
Il