Middlebury register. (Middlebury, Vt.) 1886-1937, 1888-05-25

tons. Thus reflex action must result,
which will be more or less disastrous to
the financial interests of all classes.
The capital accumulated under the
stimulus of high market values, of which
! have spoken, is rapidly leaving us,
while much that remains is held here by
that compulsion which results from the
inability to pay off the mortgages placed
upon them before the breaking down of
our markets, and when money was as
abundant here as Eastern capital now is
in the West.
What will be the ultimate result to Ver-
mont of Eastern investments in Western
mortgages is vet only matter of coniec-
ture. We may, however, judge some
what of its probable results by past finan-
cial history. BY this we learn that a
damaging depression is sure to follow an
illegitimate and fictitious initiation. As
the pendulum in its vibrations passes the
point of ultimate rest. so financial reac-
ton carries property values as much be-
cause has carried prices above that point.
Existing market values in such cases are
not safe guide in placing mortgages,
neither is the full intrinsic worth of farm
lands for agricultural purposes safe in
vestment unless the holder is able to
carry his mortgages past the period of
reaction.
The flooding of the West with Eastern
capital has produced feverish and I'M
healthy financial condition in that sec
ton. A supply of ready money beyond
the actual demands of legitimate business
will invariably produce that result. Bus
mess takes on speculative condition.
Property advances beyond its intrinsic
value; farms sell readily at advanced
prices; the country is booming; every
body is happy; both borrower and lend
er are apparently making fortunes. But
as the historic "South Sea Bubble So
called. and the thousand and one finan-
cial storms since that time, day of reck-
oning is inevitable.
The market value of farm lands must
and eventually will correspond with the
market values of farm products. An lille
gitimate stimulus to production must be
followed by corresponding depression
in the market values of the wares pro-
duced, and also in the value of the facili-
ties for production. If eXorbitant and
usurious interest can protitably be paid
by western farmers for investment in
farms at inflated prices, on which to raise
crops to be sold in ruinously over-stocked
markets, then all will be well with both
borrower and lender.
find the following in the "Homes tead'
OF April 10th, an agricultural paper, pub
lished at Dcs Moines, Iowa: "The farm
mortgages in the Western States aggre-
gate $4,000 100000" The annual inter-
est at six per cent, on this sum. amounts
to S2l0,O00,OOO. Those interested in
these securities must Judge for themselves
with regard to the ability of the West to
pay. not only this immense sum annually,
but the aggregate resulting from the
much higher rates which they claim to
receive. Not only this, but whether the
debt itself can finally be paid in full.
The question of interest to the general
Vermont public is, whether the accumula-
lions of the past, now invested in west
ern farm mortgages, will ever return to
n i'll N tha ~ on, Stoto
The market value of farm lands with
us, and the rents asked, and received for
their use, have fallen to lower point
than at any time within the recollection
of persons now living. There is little or
no demand for farm lands, and one very
unpleasant feature of the situation is, that
when thrown upon the market the pur-
chasers are not of the original Vermont
stock. The typical Vermonter of early
days is gradually disappearing from cur
rural districts, and the old homesteads
falling into the hands of a less virtuous,
intelligent, and enterprisng people.
This is indeed IA gloomy picture, and
might well be supposed to be overdrawn,
were not evidence of its stern reality so
apparent. But there is another more pleas
ing view of the matter, which, while it
does not change the sombre hues of the
present. points to more cheering pros
pect of future prosperity. The present
unsatisfactory situation is more the re-
suit of causes for which our farmers and
farming are responsible than from those
which are unavoidable.
In my next article | shall endeavor to
show that the field for agricultural i'm
provement is broad enough to more than
counterbalance the unfavorable influences
against which Vermont farmers have to
contend.
JUNGLE REMUS."
Mr.. Joel Chandler Harris, "Uncle Re-