The Arizona sentinel., 1886-07-10
A HEAVY BURDEN.
Farmers Mortgaging Land and Growing
 Crops to Obtain Money.


 the most profitable business con- nected with agriculture was loan ing money to farmers. He added that they gave the best security and paid the highest interest of any of the patrons of money-loaners. They not only gave good security and paid high rate of interest, but they allowed the money-loaner to run up handsome bill for examing the property to be of fered for security, for legal expenses in examining the title and for commis- sions for obtaining the money from some distant capitalist. Observation shows that persons who make busi- ness of loaning money to farmers al- most invariably become rich in short time. Iii large cites money can almost always be obta ned on good security for a tritie more than the interest allowed on State bonds. At the present time banks and capitalists in all our large cities are holding large sums of money that they are not able to loan at the legal rates of interest. Still farmers in the sparsely-settled States and Terri tories are charged usurious rates for the use of money, even when they are able to offer security on land that has been improved and which is rapidly advanc- ing in value. d
 That many Western farmers borrow money injudic; ously is matter of com- mon observation. It is the fashion in most parts of the South and Southwest for farmers to hire money at a rate ot interest that the profits of their business do not warrant, and at the same time to contract debts for running expenses. They are anxious to make their farms pay better than they do at present. They want to keep not only more but better stock In order to enable them to do this they require more barns and stables, and larger amount of grain and tame grass. Lumber and other building materials are expensive, ana the wages of carpenters are high. There is pressing demand for all kinds ot farm machinery, which holds its price though the price of all farm products IS very low. Drills for planting wheat and machinery for harvesting it cost as much with wheat at fifty cents per bushel as they did when it sold for more than twice that sum. Machines for planting and cultivating corn command the same price they did when the price of the grain they are used to produce was double what it is at present. The Ike
 is true of almost every machine and
 tool used on farm.
 Crops are very low, but, sngularly
 fo,.~, ptc arp h. oh and
 there are no indications of decline m
 price. Interest is low in all great money centers, but it remains very hlgh
 in all parts of the country where there
 is not capital enough to make neces- sary improvements on farms and to
 properly stock and manage them. While this state of things exists farmers must exercise much discretion and judgment
 about mortgaging their land in order to raise money. They should carefully consider whether they can invest the
 money so that it will be profitable for
 them. Manufacturers and mercantile
 men state that it does not pay to hire
 money at even six or eight per cent. to
 put iRto their business. St Il farmers in
 many. parts of the West and South are
 hiring money for which they promise to
 pay ten per cent. interest, and to obtain
 whicl they pay five per cent. commits
 sion. A business must be very profita-
 ble that allows the person engaged in |
 to pay fifteen per cent. for the use o
 money. Very few farmers can pro
 duce enough on their places to pay fiji.
 teen per cent. on the capital invested This rate of interest would soon drive them from house and home
 ! Many farmers in those parts of the Western States that have been longest , settled have placed mortgages on their , places that they can never lift except by
 the aid of another one. The incomes
 of their farms do not pay the interest
 on the money that they owe and the , running expenses of the family. One failure of ! leading crop, the visit of a contagious disease among animals, one f protraetedsickness in the family, would result in 'uin or great sacrifice of
 properly acquired by long years of hard
 labor ant self-denial. In the South where cotton and tobacco are the lead ing cmps the system of getting ad- , vancesoncrops has been general. The , farmer mortgages what is only in pros ] pect. As great risk attends the pro- ductiOn a the crop, money-loaners de- mand e1rbitant rates on the sums they !. advance Advancing money on grow z ing crqS of wheat has. also, 1t is said, ] become uite common in California, Oregon, Minnesota and Dakota. Loans : on RgrovAg crops are generally made a to partbswho have mortgaged their 5 land or 6o have not yet acquired a F title to it. s
 e Raisngnoney on stock has become : very cmnon, not only in the Terri t tories, whre there are numerous o quantities )f land that is only valuable ] for grzins purposes, but in most of the ,. NertRestrn States where stock rais- e ing isthe eading industry. Men are d constntly ngaged in making out and e recoring ehattel mortgages. Many IS farmes hare given a mortgage on the $ teamaey irive and: used to do plow- d ing, Q the cows they milk, the sheep d they -sesf-...<s ..<s... sss young cattle that ,t are gazing on the prairie. These Y farme have placed themselves at d the mcy of men who have the reputa- e ton being entirely destitute of l, mercy Should there be failure in one le of thesading crops this season; should t. there a visitation of destructive in-
 sects, should a contagious dis. .F ease a,ear among cattle, thousands of
 farmei would be hopelessly ruined.
 This ia poor time for farmers to get a. into d,t. The way into debt is very
 easy, 1t the way out is very hard rs CllicGO. Times