Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1879-04-17
Interesa ON Farm Mortgages.


There seems to be an effort in several of
the Western States to reduce by Iegisla-
ton the rates of interest that have OBJ
tanned for the last two or three decades. |
The Indiana Legislature has passed bill |
declaring eight per cent. legal interest. |
In Illinois similar bill has been passed |
to third reading in the House, but it is
not certain, by any means, to pass the
Senate, though it has many friends there.
Whatever may be its fate it will strike the
farmers of the State as a measure that
should become law. Certainly no man
can now afford to pay as high a rate of
| interest as he could ten years ago. But
the passage of such law as to future
contracts for loans can hardly meet the
full requirements of the times. The num-
Der offarmers groaning under 10 per cent.
mortgages that have, many Of them at
least, more or less years to run, is enor-
nous. The condition of the farmer who
thus owes interest and principal is almost
a hopeless one. Something needs to be
done to mitigate the evil. Just what is
possible is a problem not easy to solve.
The mortgage does not want the proper
ty on which he has made the loan. 1t has
deprecated in value from One-quarter to
one-half. The borrower can not pay the
Indebtedness, nor can he, at the present
prices of products, meet the interest.
Yet the lender, though perhaps not in ac-
: tual need Of the principal, does need, and
. should receive. stated rate of interest
promptly at maturity. Can there be com.
III, Al, 49, l.
: can retain it and from his crops save suf.
a ficient to meet what would now be con
q sidered fair compensation for the use o
: money. In other words, cannot mOneyeC
capital afford to share, with landed prop
n erty, manufactured goods, and products OF
! labor of all kinds, portion of the grea
shrinkage of values that has taken place
We see no way by which this can be &C
n eomplished except by what may presen
. itself through calm and rational consid
n Grafton of the condition of affairs by bot
n parties in a spirit of mutual conciliatio
: and in a spirit of justice, to agree upo
a the basis of a future per centage that sha
- secure to capital its reasonable claims an
~ allow to the borrower an opportunity
20 pay interest as 1t accrues and the prime
40 pal at maturity. If this cannot be don
"a the money-lenders will find themselves
10 possession of vast quantities of land fro
of which they can realize nothing, which
? the direct and speedy road to bankruptc
90 and the farmers will be driven to pa
l. with otherwise valuable property, G
of which they have spent years of both lab
100 and the products of labor, and to SCI
10 homes in States to the west, where tax
IL tion is limited and where homesteads ca
bA be had for the asking. If things are
,o- keep on in this course the exodus to Ka
sas, Nebraska and the territories will
"a such that our own State and others sin
ts. larly afflicted will be depopulated to
- extent that will weaken its strength to
7ol degree that it cannot recover from duril
ice this century. 1t requires no great aTnou
80 of forecast to predict this state of afai
ver which, is so rapidly approaching. It is t
~ part of wisdom to meet the issue wi
the reason and liberality. Agitation and
or cussion can alone bring the matter tc
no just and equitable conclusion.-Chi
=. Farmers ReUiel1