The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-03-10

ft Injuries the state Mere Than It
Does the Capitalists.
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The experience OF Nebraska proves
that ii il much easier 10 injnre the
farmers by legislation hostile 20 CAPT
tai than il IL 10 benefit them by the
enactment Of special laws for their
protection. In response 70 a strong
public sentiment Law Was enacted
declaring that no nonresident alien
shall hereafter acquire or hold any
real estate or interest therein in the
state OF Nebraska by purchase, device
or descent A mortgage il IAN inter
est In land, and consequently cannot
be held by d foreigner. The aetrimeu-
tai effects OF this Law very soon made
themselves felt. The supply Of money
seeking investment IN farm securities
has been restricted very materially.
The farmers Of Nebraska. up
~ the passage of this act,
as rule, had no difficulties
In obtaining loans on reasonable
terms. Their mortgages being cor
sidered sale and profitable invest
nents, capital came freely 10 compete
for them. All this has been reversed
by the alien act. European capital
which has been sneh an important
factor in building up the West Is
debarred from entering the state.
The farmer finds Ii difficult TO
obtain loans even at greatly increased
rates OF interest. After the pas
sage OF the act large amount OF
mortgages fell due. and in eonse-
quence OF the restricted supply OF
capital many farmers were unable 10
renew their loads, and foreclosures
followed one another in rapid success
zion. In one county there were as
many as 81 foreclosures at sim
gle term of court last July. aud IN
many other counties the records OF
such proceedings tell an equally mel
ancholy tale. Commenting upon the
agitation against foreign capital in the
West, responsible financial journal
says Demagogues are not wanting
in the West. They must be warned
ton and restriction OF mortgage loan
activity. The report recently made
OF the farm mortgsges In the states of
! Ohio. Michigan. Wisconsin, Mime
sofa. Iowa. Indiana. Illinois. Kansas,
Missoari and Nebraska show that the
total amount of these securities il
considered more than 81 900 U0, 900.
and Is increasing every year. OF this
vast amount Ut capital lent to the
needy farmers OF the West, foreigners
have contributed very notable
proportion during the past
10 years. Powerful corporations of
American capitalists are organizing
arrangements TO augment the yolume
of European capital which is pouring
49,.
on bond and mortgage as well as IN
other securities, such heneilcent
movements NJ these which are max
Ing by our citiseus for the benefit of
the great wheat-p producing states ef
the Mississippi valley, viii be discour-
aged, and viii fail 70 reach the early
fruition anticipated for the future,
unless such Legislative remedies for
the existing evils are adopted as shall
protect the farmers loans and like Sc
carities. and shall throw around them
such safeguards as are demanded by
the real interests of the borrowers. rs
well IS by the just claims of the lend
ers. /"
This is good advice, which Ii would
paw Ia follow. On account of her ia,
dirious financial legislation. Mime
sofa has attracted Eastern and Euro
pean capital. How wise and beneficial
this policy has been in It's results IS at
tested hy the rapid and vigorous de-
selnpment of the commonwealth. Ne
Legislative step should he taken which
would he sur. TO elieck this wonderful
growth, The Northwest is the safest
and most profitable sseid of invest
nient thar idle capital can seek.
All that is needed Is that the
regulation OF matters be Left 10
The natural Eaas os prodac-
ton and trade. II they be not inter
feresi with by arbitrary and inlndiciouS
legislation, oar magnificent resources
and possibilities will attract n supply
OF capital sufficient large ~ prevent
eStortaonate rates While stringent
laws intensity the competition among
borrowers, and thus aCrsaSeti the rate
OF interest. liheral legislation creates
compsttii n aaaeag investors, which
- the quickest Way of reducing the
ptiee 81 mooney. There is nothing
mere sensitive than capital, anu
nothing that can better afford Ia stay
away from where II does nat seem to
Ia