The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-05-20
FARMERS MUST HAVE RELIEF
An Interesting Letter from Gen. Chsndier
of Missouri.


To THE EDITOR OF THE suN-Sir: The Demo-
cratic party must provide way for the sEri-
culturists to fund their mortgage Indictment
and reduce the interest thereon. Tho Govern
ment has done this for itself on several occa.
sions. Railroad companies make common
practice OF reducing their interest charges TO
the earning capacity OF their property and to
secure to themselves the chearest market
rates Of interest
The recent Santa F6 achievement In this re-
spect is an illustration OF the willingness OF
security holders TO scale down an indie btedness
to the paying capacity oil the maker ofthe paper.
The Government would not. nor would any
great corporation, continue the payment OF
seven. eight. nine per cent. interest on so vast
an Indebtedness rs is now resting on the farms
OF this country. No business can thrive under
such weight Of interest. The farmers must
have relief from this burden. or lose their farms
and lecome tenants.
Relief is thoroughly practicable under the
Constitution OF tho United States by applying
TO the farmers the same rules OF adjustment OF
their debts rs are applied to railroads and oil
Other corporate and commercial enterprises.
III merchant fails and is honest his creditors.
under an unwritten law which prevails among
oil commercial classes, reduce his indebted
ness to his capacity to pay, and the CONNER
cial debtor is allowed to work out This prac-
tice is humane and rests upon sound public
policy.
The liberation OF citizen Frustrated by debt
Is OF greater concern TO the State than the en-
forcement of technical and austere terms OF Il
contract to pay money. 1t is upon this idea
that the power in Congress to enact bank
ruptcy proceedings rests. Under this power
individuals are rescued from the paralysis OF
oeots which they cannot pay. Every contract
entered into In any business Is made subject to
the exercise by Congress OF the power to deal
with that contract under and by virtue Of bank
rupt laws. Hence n Judicious provision by
Congress through bankrupt proceedings for
eNempting homestead to the farmer from
sale to satisfy Il mortgage debt in the
event that the MORTGAGE will not reduce his
interest could be made. H. however, the mort
Gagee would agree to scale down his interest
to or 8 per cent. the exemption TO the farmer
need not be available. On this basis the cred
itor and debtor would be brought face to face
as In the case when railroad passes into
the bands OF a receiver for insolvency. The
oondholder realizing the situation. reduces his
interest receives new paper for the old, bear
ing lower interest, and the railroad enterprise
Is allowed to resume its activity. The new
paper with lower interest is generally worth
moro in the marke ct than the old, because there
is greater assurance Of its payment. There is
really no loss to the creditor. because he re-
ceiVes paper OF higher commercial character.
and hence more likely to be met. The estate
OF the debtor is not consumed by litigation he
is allowed TO keep his properly and prosper.
His desire to meet his indebtedness is in
creased. A few examples OF the operation of
such law would result in a voluntary read
justment and refunding OF tho agricultural
debts OF the country generally, and would save