The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1882-12-14
LENDING MONEY ON LAND.
The ObJecto of tho Southern I.ana Comma.
ny.
Correspondence cfi.s Hews ana Ctur.e..

Wv w fhC iuoot Important measures
that will come before the General AS
sembly at its pr esent session ia tho bill
to incorporate tho Southern Land Loar
Association, Which has been introducct
in the Senate by Mr.. Gaillard, of Fair
field. The bill provides that William
II. a. Fielding. Of London, a director In
Queensland Investment COMPANY. and
brother of the Earl of Denbigh Frede
rick Wolfe. president of the Peoples
Bank, Meridian, Miss, and president O,
the New Orleans aud Nor,heast.r rn Rail
way Company; Charles T.. Lewis, o
New York. director Of the Vicksburg and
Meridian Railway aud Of the Vicksburg
Shreveport and Pacific Railway Compa
mics; Morris h. Jessup Of New York
John Is. Palmer, James II. Rion and
John =. Ah"cy of South Carolina, aud
such other parties as may be associated
with them, shall b. a body polite and
corporate, under the name Of the South
ern Land Locn Association"
THE CAPITAL STOCK
| Of the association is fixed at 500 900.
but tho privilege is granted in the char
tel OF Increasing the same TO $4,000, ,OOC,
and the further privilege of increasing
the capital stock to s5.000,0OG after the
association shall have been in operation
two years.
T!l:o company viii; bs established for
the purpose of extending into tho South.
ern Stntes the methods Of
LAND MORTGAGE INVESTMENTS,
and will confine its loans to first mortga.
ges on freehold estates, limiting advap.
ees to sums not exceeding 80 per cent. of
the cash yslue Of The property. The bill
provides that the association shall have
power to lend money on real estate &C.
curity ut such rate Of interest rs NAV be-
agreed upon in writing between the Dor.
rover and the association, and shall have
power to purchase, hold and sell real es.
tate and issue debenture bonds upon the
SECURITY thereof" The association shall
have all the privileges, righta and immu-
mites conferred upon any and all char.
tered banking corporations in this State.
except the power of issuing bank notes.
lhls bill came up a. the last eesaion of
the Legislature and passed the Senate
alter much discussion, the opponents of
the measure taking the ground that the
passage of the bill would be n practical
notification of the provisions Of
THE UsURY LAW,
and that it would lie direct discrimiua.
ton in favor Of foreign capitalists against
resident money lenders who are limited
IN their interest charges to the percent.
age fixed by law. On the other hand it
was claimed that the provisions of tie
usury law were continually disregarded,
and that those who were compelled to
borrow money actually paid a higher
rate of intesest than the legal rate, and
that tho farmers who were to be most di.
rectiy benefited by the passage of the
Act instead OF paving seven per cent. in.
terest in realty paid from twenty to fifty
per cent, the prices fixed upon all kinds
OF farm supplies under the lien law,
amounting TO the virtual confiscation of
all their earnings from year to year.
THE LIEN SYSTEM.
In the report of the Comm missioner Of
Agriculture for 1881 The returns from
the different counties in the State show.
ed that 73.S08 liens had been given by
the farmers OH their crops for the means
with which to carry on their agricultural
operations. TheBe liens amounted in
value to $7,359. 1862, for which sum the
crops OF the State were mortgaged before
they had been made. The rate of inter.
est charged on the supplies furnished to
the planters was exorbitant, amounting
on many articles of absolute necessity to
fully fifty per cent. Under the laws
controlling the national banking compa.
nies, they are not allowed to loan MONEY
on real estate security. 80 that those who
have not the means Of carrying on their
planting operations without aid from
some source are left entirely at the
mercy of the provision dealers, who pile
on the profits without regard to the ne.
ccssities OF the farmers, and Just as long
as they will patiently submit to such
usuFy just 80 long viii they De at the
mercy Of the speculators. Ordinarily
speaking, money 10 worth what it will
bring, and there is little doubt that the
passage of the Act Incorporating the
Southern Land Loan Association would
furnish relief to the farmers of the State,
and enble them to recover, in q measure
at least, from the injurious operations of
the Lien law.
CAPITAL IN THE SOUTH AND WEST.
In the Western agricultural States
capital ia supplied to the producers of
food in its various forms by more than
twenty British companies, possessing
capital to the amount of more than 40.
900 900, and present debenture issue of
nearly $20,000,000. The same States
also possess a banking capital amounting
to more than $3.50, 0,000,0 900, while the ex.
port of wheat, the most important agri.
cultural product, amounted in value in
1881 10 about $l70, 100000. The South
g. cotton producing States, on the con-
have until within q few months
hau no assistance whatever from foreign
capital, and their banking facilities have
amounted 10 only $50, 600, 900, while the
exports Of cotton alone reached in 1881
the sum Of 245,0D0,000. In other
words, the West had financial aid to an
extent exceeding by one.sixth the total
vnluc Of its wheat export, while the
South received financial aid 10 only one.
fourth the total value Of the cotton ex-
port. The consequences in the cotton
States have been extended credits at
high profits to local dealers and middle
men, and loss TO the producer of nearly
ope.half his net income. The Southern
States, recovering from the disastrous re-.
suits OF the late war, need only O sufi.
cient eupply of capital to acquire the
wealth and importance they formerly
possessed. 1t would be the part of wis.
dom. and in keeping with sound conserv.
ative policy for the Legislature to take
such action AZ would promote the intro.
duction Of large capital into this State,
and by making the interests of borrower
and lender in some way identical, con.
tribute to the prosperity OF both.
MOVEMENT AGAINST MIDDLsMEN.
| Tho ol;enf ~ Aha Hill oo,, L.c... Al