The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1888-09-26
INDIANA AND THE TARIFF.
EXPERIENCE OF ONE HUNDRED YEARS
How Our People Have Paid Their Money
to the MonOpOlists of the East and Bor-
rowed 1t Back at High Rates of
Interest-The Mortgage Record.

Before considering the statistical records
by which the comparative growth of Indi-
ana and the manufacturing states is shown,
IL may be well to run over some of the
general features of our development which
are largely within the knowledge of every
one. The era of low tariff taxation, I'M
mediately preceding 1860, was also an era
of internal Improvement. Many of our
railroads were built at that time. Many
men now living are familiar with the his
tory OF this railroad-building, and indeed
it differed little from the same work as
done now, except that people generally
are not so liberal in giving aid as they
used to be, and for very excellent reasons.
A road would be projected and surveyed I;
the people would take stock and grant
right OF way; cities, towns and counties
would vote bonds. The bonds donated
would usually be sold; and the road, as
fast rs built, would also be bonded, and
the money realized be added to the con-
struction fund. After some years the
bonds would be foreclosed, the stock
holders shut out, and the railroad passed
over to the bondholders, who forthwith
would proceed to reorganize the road and
bond it to themselves. In due time, when
the floating debt Of the road had become
large enough to make ii an object, the
bonds would be fOreclOsed, the road re-
organized and bonded again, and the un-
secured creditors frozen out. This cheerful
process was varied occasionally by some
special maneuver for the purpose OF affect
ing the market value OF the stock and
bonds. At one time railroad company
actually applied to the United States
court at Indianapolis for a receiver for
itself, and at the same time instructions
were sent away for transactions in its
stock by those who were advised of the
move. 1t so happened that Judge Ores
ham became informed of the true inward
ness OF the affair and knocked this little
scheme in the head.
But what has all this to do with the tar
iff? Nothing; only the people who were
conducting the infant industries had
grown wealthy by the time we were
ready to build railroads; and these same
kind of people of the East bought the
bonds and in due course of time gobbled
up the railroads. 1t is all right. If peo-
pie want to tax themselves to make other
people rich no one can stop them. This
is a free country. After one gets rich he
must be expected to use his money for
his own advantage. Capital has rights
that must be respected, for this is land
of law and order, and if anybody gets
pinched in these little business trans
actions, he ought to take it philosophical
". If he thinks that capitalists have
more privileges than other people, let
him join the capitalists and partake with
them of the bounties which a paternal
government has provided.
Do not understand me as Directing to
the honorable course of the people who
built fortunes on tariff taxation. They
have always shown a readiness to oblige
the less favored classes by loaning them
money on good security at the highest
rate Of interest. This was particularly
noticeable Just after the close of the war,
when an inflated currency and the sud-
den return of great numbers of men to
the ordinary vocations of life had stimu-
lated all sorts of business enterprises TO
the highest degree. You all remember
how Eastern companies loaned money in
those days. The exact extent to which
mOrtgaging was carried can not be GER
tainly told, but it is greater than the ma
jority of people have any idea of. One
estimate is that One-third of the real es-
tate in Indiana is mortgaged, and think
this isnot far from the truth. Perhaps some
idea of it can be obtained from the amount
OF mortgages recorded. In Marion
county there are 276 volumes of the
records OF deeds, 223 volumes of
the records of land mortgages, and 80
volumes OF the records of chattel mort
cages. The increase Is at the rate of five
to six volumes of deeds, four to five vol
umes of land mortgages, and two to three
volumes of chattel mortgages yearly
Now, Marion county is in better condi-
ton comparatively, in this respect, than
H. ~ fhro of H.
better probably than the average in any
Western state-and, in one way, makes a
better showing for the last few years than
ever before. This is in the matter of
building association mortgages, which are
now largely increased in number and the
advantage consists in the fact that the
capital loaned by them is home capital,
the interest paid remains at home, and
they are more generally paid and less fire.
quently foreclosed that other mortgages.
1t is commonly answered to the great
showing of mortgages that they are con-
tinually being satisfied as well as made
Our state bureau Of statistics endeavors to
collect every year the number of mort
cages made and the number satisfied, and
usually succeeds in getting reports from
about one-half of the counties. On
these reports the newspapers of various
localities congratulate their readers on the
excess of satisfactions over new mortgages,
or deplore a contrary condition, as the
case may be. On an average, in general,
there will not be found any great differ
ence between the two amounts. This is
all very well in its way, but back of it lies
another question of much more import
ance: How are these mortgages satisfied
Did it ever occur to you that mortgages