Nevada County picayune., 1886-02-17
THE MORTGAGE SYSTEM.
Vigorously Assailed py United States
 Judge Caldwell

Judge Henry C. CaiuWell ueiiV' cred an able address recently be' fore the Arkansas bar association at Little Rock, in which he made 9 vigorous attack on the mortgage system of cur state. The subjoin ed salient extracts from the admi- rable address will be of interest to our readers:
 Foreign corporations engaged in the business of loaning money, and naturalized persons as weell, hay ing heard how the mortgage busi- ness flourished in Arkansas, came down to spy out the land. The first thing they did was to ask the legislature to pass an act declaring that in the case of mortgages and deeds of trust given for borrowed money, the borrower might waive the right of appraisement, sale and redemption. The legislature com piled with this request; and those corporations immediately engaged in the business of loaning money, on the following liberal terms: |. The borrower is compelled to pay 20 per cent, of the principal sum loaned as commissions for procuring the loan,
 That sum being exactly one-ifth of the money borrowed, he never sees or touches it.
 2. He is required to pay for a search of tho records and an ab- stract of title.
 3. He is required to keep the improvements on the lands insured for the benefit of the mortgagee, against loss by fire and pay the premium.
 i. He is required to waive his right of appraisement, sale and re- demption.
 5. He is required to agree that the property may be sold by trustee, upon short notice, without going into court.
 6. He is required to pay the fees of the trustee, and the fees of the mortgagee's lawyer for collect, ing the mortgage.
 7. He is required to pay from s to 10 per cent, interest annually on the principal sum, the fifth ta' ken out for commissions, and which he never had the satisfaction of ever handling, being counted as part of the principal,
 And this is called "Inviting cap ital into the State.' Rather say it is a means of impoverishing th' state, banktupting the citizens anC breaking the hearts of his wife ant children, who are ruthlessly dliv en from the shelter of their home
 The man who inserted the lav referred to either knew little abou political econ omy, or they did no contemplate payment of the loans They probably held to Sheridan'' doctrine, that it is the--extreme O extravasance for a man to fritte away his money in paying his debts
 * * *
 l close the discussion in tht words of Mir. Burke, VI know that credit must be preserved, bu equity must be preserved too; ant it is impossible that anything should Do necessary to commence which is inconsistent with justice
 The remedy for these evils is ob vioas and easy of application: 1. Prohibit membranes of tho homestead and personal property exemptions. This the legislature can do without an amendment tt the constitution.
 ?. Repeal the act authorizing mortgages on crops growing ane to be grown; or at least modify Il by providing such a mortgage shal only be operative on so much O the crop as may remain after pay ing rent and taking out enough tt feed the mor:gager and his family for one year.
 8. Prohibit preferences in as signments for the payment O debts, and prohibit preferences by attachment by providing that the : first attachment shall inure to the equal benefit of all creditors who will come in and share the court expenses.
 These measures of reform have been adopted in many states, with the happiest results. They are