Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1884-09-11
PAYING THE PIPER.

AS q result OF the repeal vi IIle lIeil itlW {,
in Georgia, year or two ago, the condition
already of affairs in that State is foreshad-
owed as follows in recent Atlanta dis
patch: The United States Courts are be-
ginning to take new class of cases, name
ly, suits of big money-lending companies
against farmers who have borrowed money
on long time. At the last term there were
several Of these cases heard and judgments
rendered for the amounts claimed. In
none OF them so far have defenses been
made. The prospect is that this term
of Court will see still greater number of
these suits, but the number will be limited
for q short time to come, as many debts
have not begun to fall due and will not for
two or three years. In the last few days
several new suits have been filed in the
United States Court. The Freehold Land
and Mortgage Company of London sues
Walter A. Basely, Jr., of Greene county,
for s2,7OO. This Indebtedness was created
in June, 1882, at which time the defendant
borrowed $4,000 and gave his note for the
principal and interest. This money was
payable at the Corbin Bank of New York,
and by the terms of the agreement the
notes were to be declared due at the pleas
ure Of the holder in case the interest was
not paid within thirty days after it was
due. The notes have interest coupons at
tached, like the coupons on bonds. 1t
seems that in this particular case the $500
interest became due November Is, 1888, and
was not paid. The debt to the company is
secured by mortgage on 500 acres of land
in Greene county. AS the company is a for
eign corporation it has the privilege of bring
ing the suit in the United States Court,
which it has done. The above suits make
the beginning of an era of untold misery
for the people of the State. About three
years ago those companies set up bus
mess in Georgia, advertising most extrav-
igant inducements to make farmers borrow
money. Thus on $3,ro0 worth of property
perhaps $1,000 could be borrowed. From
this 81 200 would be deducted 5000 by the
agent for commissions, etc., and upon the
nominal 81, 900 per cent. interest had to be
paid, and the money had to bring five
years interest, no matter whether the bor-
rover want it so long or not. The real in
terest paid is II per cent. Having got the
money and lost it, the borrowers now find
themselves in the hands of the sharks, who
will mercilessly push them to the wall in
the Federal Court, to attend which many
Of the victims will have to travel 100 miles.
Thus within another few years there will
be witnessed a wholesale eviction of farmers,
with scenes rivaling some of the stories
coming from Ireland.
Commenting upon the facts above stated,
the Abbeville Medium says:
People who enter into such arrangements may
expect to give up their property in the end. The
rate Of interest on the sum borrowed is unlaw-
full and the costs and expenses of negotiating
loan are beyond all reason. A man OF common
sense and Judgment would at once avoid any
such ENHANCEMENT.
Still the Legislature about two sessions back
enacted laws giving especial privileges to an in
corporation which will bring just such distress
and bankruptcy to our people as are recounted
in this sad catalogue of evils which have befalen
the good citizens of our adjoining State. The cry
has always been that we should bring "capitaP
into the country. Verdant and inexperienced
legislators have listened to this demand and we
are now laboring under the greatest disadvan-
tages when we attempt to pursue business IN the
most approved methods. Favoritism has been
shown to foreign usurers and men at home who
are content to live upon reasonable and just
profit are set aside The law restricting interest
to seven per cent. was abolished in order to in
duce foreigners to put their money in our midst
Any sensible man might have known that such
inducements are calculated to put mon1ed men
upon inquiry and deter them from investment
When our Land Loan Association was first or
ganized we entered our protest against it. We
thought we were right then and the calamities
which have befallen Georgia confirm us in our
opinion.
Speaking of the transactions of foreign
land loan associations in South Carolina the
Columbia correspondent of the Ne1rS md