Omaha daily bee., 1888-01-11
Loans on Farm Mortgages.

ter OF the assaults made by itinerant
or commissioned correspondents upon
the credit and honesty OF western farm
ers. The unjust and unwarrantabie
attacks have, however, not wholly
ceased. Periodically there appears in
the eastern papers n repetition Of the
alleged insecurity of loans on western
farm mortgages, and the writers Of
these screeds bolster their depre-
ciatory statements with a few
scattered facts, always to be
found, of foreclosure and losses, which
being duly embellished and sent out as
evidence of the general risk that east
ern capital runs in making this class of
investment. 1t might not be impossible
to discover the inspiration of these un-
worthy and unjustifiable attempts to ]
put n barrier in the way OF western de-
velopment and enterprise. 1t would be
a safe inference, we think, that it comes
chiefly from the real estate and other
spectators of the east, to whom the di-
version of money to western investment
is necessarily check upon their opera
tions, while at the same time making
money in the east more valuable.
Obviously if these spectators could
frighten eastern capital away from the
west they would obtain most
important advantage, and it
cannot be regarded as q far-fetched
presumption that they would seek to do
this. But if they have been at all sue
cessful thus far it is only TO a very mod
crate degree. The moneyed institu-
tions OF the east that have deals in
western farm mortgages and found them
among the safest and most profitable of
all their investments, are not likely to
be persuaded against continuing this so
far entirely satisfactory policy by the
totally inadequate evidence of the hired
emissaries of eastern spectators. These
institutions have the facts Of a long ex-
perience before them and they are
pretty sure to be guided by them. They
may perhaps become a little more eau
tious and circumspect, which in the
end will be better for every
honest and thrifty farmer, but they
will continue to employ their money
where they have demonstrated it can
be used with the greatest profit, and as
safely as in any other investment ex-
cept government securities.
The st. Paul Pioneer Press has pros
ecuted an investigation regarding loans
on farm mortgages in the northwest,
and the result is complete refutation
of the depreciatory statements of the
eastern papers. Inquiries made of sew
eral financial firms that loan eastern
and foreign capital on farm mortgages
elected the uniform statement that
their experience with such invest
ments had been entirely satisfactory.
1t was shown that the percentage OF
foreclosures in Minnesota and Da-
kota, where the average amount of the
loans actually placed does not exceed
$500, is under two per cent. Of the
whole amount Of the loans placed, and
a very large percentage of the mort
cages are paid at maturity entirely out
of the farmers profits. All these firms
agreed in saying that they regarded
farm loans as the most desirable to be
had. The Pioneer Press says: "To-day
| the loaning business has assumed large
proportions, not less than between $4O,-
OOO, ,OOO and $50, 600 600, it is estimated,
being invested in mortgages on the
farm lands of the northwest. The rec
ords OF any other business in the
country may be searched in vain
to find a safer employment
for capital. OF all this vast amount of
money placed in trust, less than 2 per
cent has to be recovered by foreclosure
proceedings. The prompt payment Of
interest is more marked than in the
banking business. And the fact that an
| average of per cent Of these loans is
| paid before they mature makes its own
comment upon the material condition of
| the country" The same conditions of
| steady improvement and increasing re-
sources that render farm loans in Min
nesota and Dakota safe and profitable
prevail at least equally in Nebraska.
The agricultural growth Of this
state will compare favorably with
that of either of the states of the
northwest, and the average prosperity
of Nebraska's farmers is as high as that
of the farmers of any state in the union.
We believe, also, that the record will
show that farm loans have been paid as
promptly and generally in this state as
in any other. 1t may be too much to
expect that the unwarrant ted attacks on
the credit and honesty OF western farm
ers will wholly cease, or that they will
not be made periodically in the future
as they have been in the past, but SO
long as the facts so completely refute
them us they now do, they cannot effect
their object of inducing eastern capital
to abandon investments whose safe and
profitable character has been attested by
ample experience.
| Tho Cnrnty .TaSl