St. Landry democrat., 1885-06-13
Mortgages ON Farms.

A Georgia paper thus describes the
peculiar operations of mortgage com
pany ''The Freehold Land and Mort
gage Company, of London, sues Walter
A. Baselv, Jr., of Greene county fol
$2700. This Indebtedness was created
in June, 1889, at which time the defend
ant borrowed $2500 and gave his notes
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 de-
clared due at the pleasure OF the hold
ers in case the interest was not paid
within thirty days after it was due. Inc
notes have interest coupons attached,
like the coupons on bonds. 1t seems
that in this particular case the 500 OF
interest became due Nov. 10, 1888, and
was not paid. The debt to the cOmpa-
ny is secured by Il mortgage on 52O
acres of land in Greene county. AS the
company is a foreign corporation, 1t
has the privilege of bringing the suit
in the United States courts, which it
has done. The above suits mark the
beginning of an era of untold misery
for the people of the State.
The plans Of these money lenders
were we'll and deeply laid. They ope-
rated in other Southern States besides
Georgia. The Georgia paper describes
their traps:
"About three years ago these compa-
MES set up business in Georgia, adver-
tising most extravagant inducements to
make farmers borrow money. Thus
ON $4,000 worth of property perhaps
$1,000 could be borrowed. From this
$1,000 would be deducted $500 by the
agents for commissions, ETC., and upon
the nominal $1,000 eight per cent. inter-
est had to be paid, and the money had
to bring in five years interest, no mat
ter whether the borrower wanted it
that long or not. The real interest paid
is fourteen per cent. Having got the
money and lost it, the borrowers now
find themselves in the hands of sharks,
who will mercilessly push them to the
wall in the Federal Courts, 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 COM
ing from Ireland"
"It is estimated" says the Chicago
Tribune, "that more than half the
wheat lands of the West and Northwest
are mortgaged, the farmer paying s or
10 per cent interest. Really, if the bo-
nus paid for the loan is calculated, he
is paying II to 13 per cent. These
mortgages were assumed on the basis
of wheat at dollar bushel. The eff
feet of the immense decline in the price
of wheat at the places of production is
to increase the proportionate size of the
mortgage. Many farmers are paying
interest on interest, as they have bOr-
rowed to meet their payments. The
money they received upon the mort
cages has usually been spent in break
ing the land and meeting the expenses
of living, all of which were scaled up
to correspond to the high pressure price
of wheat. If wheat had continued high,
no doubt they would have been able to
emerge solvent from under their load
of debts. But, as it is, these farmers in
the Northwest and West are borrowing
money to live on and to meet the cou-
pons on their mortgages by giving chat
tel mortgages on tools, teams, grain and
live stock. The strong demand for
money at high rates in the wheat belt
tells the whole stOIy,"