Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1885-12-04
Western Loans.

To the Editor of the Free Press and Times:
In your recent article on "rhe Present
Dangers of Investment" you say that
any Investment promising to yield above
six per cent may be assumed to be dan
gerous one-that parties negotiating
western farm mortgages, are themselves
treading on dangerous ground, relying, as
yOu say men do, entirely on the repre-
sensations of the borrower and that it
is the height of folly to loan money on
such securities yielding above six per
cent, even through a reliable agent. This
is equivalent to giving the agent credit
for honest intentions, but charges him
and all through whom he deals, with en-
tire Ignorance of their business and its
responsibilities. We approve of the eau
ton which you advise, for it is the one
thing which has led to the success of
Western loans, but it is the absence of
such caution and care which in effect you
charge upon the agents, we feel called
upon to deny. Uniformly good results in
any business extending over many years,
indicate safe methods of conducting that
business. We feel that the writer of your
article has never informed himself as to
the results or methods of making west
ern loans. Well might me have devoted
his article to warning our people against
some kind of investments at home, and
no doubt he would have done so, had he
been familiar with the numerous fore
closures of mortgages shown by the rec
ords, and with the sad experience of hun
dreds of depOsitors in certain banks of
our State where they have not received
interest and scarcely Il dividend upon the
principal. 1t is significant fact that the
most successful Savings banks make their
investments largely upon western farm
land, and those banks which have fdilCd
preferred home securities, which they
,,,ll Il
property-all their lives, but the money for
some reason don't come. The effect of
the article is to deter individuals from re-
ceivlng full value for the use of their
money by creating distrust of all persons
and corporations outside of Vermont,
even where for years they have proved
themselves faithful servants of their pa
irons. Many, to-day, are receiving but
three or four per cent for their deposits.
The banks invest these same deposits
largely on western farm mortgages at
seven and eight per cent often through
the same persons and corporations repre-
scented here and elsewhere by local agents,
knowing the securities to be excellent and
the loans attended with no expense. A
large class of eastern people have come
to learn this fact and for years have re
ceived the higher rate by dealing directly
with the local agents here. Money has
Away commanded a higher price in the
west than in the east. 1t has been paid
and the west has prOSpered. The rela-
tive cost of production is less and western
farms appreciate instead of deterlorate in
value with each years cultivation. For
merly ten per cent could readily be pro
cnm,non rates ~
nars mo ,,,odo rno, iuonoctior of tho
1,nde Nv rs.nnnsibIa narinns NJ, cornorn.
tinn. Who's, cola hnsifnasS IL nlocini, INC
money of their patrons. These parties
oae+ 'nd of avcoiiaInt ron''tntinn at
thoir " ,rostorn Man, and thn'' c,r III