New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-02-27
WASHINGTON GOSSIP.
HOW MORTGAGE REPUTATION MAY AFFECT
THE EAST.
A WOMAN IA UNABLE TO SEE Mt. IN.
III J0KE-KANSAS HER REPUTA-
TON FOL HoNEsTY-FARMERS' ALI.
ANCE PEOPLE IN WASHINGTON.

ton. The eXtravagant terms employed by this
representative of political aggression toward en-
istiag things drove the majority OF the ladies out
Of the hail. This Kansas female orator has no
real sense Of humor, or size would not have given
during her discourse Senator Ingalls's reason for
not accepting her invitation 70 a joint discussion.
She reported him as saying that no one but women
and Indians scalp their enemies after they are
dead. The tone of this speakers discourse fully
instifes everything that has been said concerning
the Kansas campaign. She said that the cam
paicn that they were going 10 make was against
capitaI. and would he carried on d" from Wall street
70 the gates of hell It was after this striking
phrase that the convention hall began 10 empty.
The main argument Of this speakers talk was
directed against the holders of mortgages, and al
She represents fairly the sentiments of the Farm
ers' Alliance. it would be well for future investors
70 steer clear of Western States where this Alliance
! movement is now the strongest. According TO
| the theory of this movement. a capitalist Is n
natural-born robber, and after he las lent his
money to q poor man in order TO keep him going
or to enable him 10 make improvements on his
property, then any request for the payment OF
moderate interest on the money invested, or any
demand to have back his principal upon a day
previously agreed upon, is to he considered a
high-handed act Of outrageous tyranny. No crime
IL RItdlNI II II lbiNi h''H"'N wv ''N 49,
crime of foreclosing a mortgage in order TO satisfy
a just debt. The question throughout is one OF
| plain common-sensc business. The Farmers
Alliance people complicate it with emotional argu-
ments. They talk about the suiicrinGS OF the
farmers on the Western plains, their sorrows and
their desolation. The Kansas woman orator speaks
of the babies buried under the prairie s0dS as Il
feature peculiar TO Western emiErant farms.
In other words, she takes some If the most sacred
pictures Of domestic bereavement, the most trying
incidents in Western struggles. as an argument
in favor Of the abrupt and brutal reputation OF
honest debts. What she says upon the SUBJECT
Of sorrow and privation in the West would make
q good basis for an appeal 10 private charity, but
il would not justify the most moderate OF the
many rash cXpcdientS proposed by these rcformcrS.
The fact that hundreds Of families have been
turned out of their homes because they were
unable TO pay for them is a sorrOwful one. But
there is no reason 10 suppose that this eVH
could be remedied by any Of the means proposed
by these would-be friends. IL is believed IN
Washington that Kansas has now been set back
twenty-five years by the attempts made III the
/ direction of reputation Of It's debts. When once
a State has established a reputation of TINS Hlhd
money will shun it, and tie future development
Of the State will he greatly retarded. Inc clo-
quent people who dwell upon the misery OF the
families who are turned out Of their homes through
fine foreclosure of n mortgage, might reserve some
of their cloquence for the misery suffered pS
families in the East, whose sole source OF income
is derived from the investment OF ther moderate
means in Western properties.
THE proof of the effect upon a State of a move
mcnt against the payment Of honest debts is well
shown in the history of the State OF MISSISSIPPI
This Is to-day for outside investors a Dlack spot
TO be stunned. The State formally repudlatcd
some wears ago certain State obligations. This
bas placed upon the community the burden OF
financial dishonor. The securities of that State
could not to-day be sold in any foreign market
of the world at any price, And naturally prl-
vate investors hesitate 10 trust even individual
members of a community which is living under
such a financial ban.
1t will be shown upon investigation that the
real hardships in the West will soon De carried
TO the East. The financial hard times. the bad
crops, and all which have made the farmers IN
some of the Western States unable 10 pay and
have deprived them OF their homes have pro-
duced the first sufferers. The second sufferers
are those who are holders Of stock In loan and
trust companies throughout the country. IT
should he borne in mind by the Farmers Alliance
agitators who think that discordant bowling and
communistic shrieking viii hasten the day when
lltlt Will " Nv NF' 49,
| that the holders Of the securities of the loan and
investment companies are in the main poor pco-
ple. They are people who have committed the
unpardonable crime of being industrious and eco
nomical. Through their economy and industry
they have saved something for rainy day. and
have naturally sought the safest form
of investment which would secure 20
them a modest return upon their money,
while they would at the same time
have the best guarantee for their principal. They
have carefully avoided mere speculative fields.
upon the theory that there is nothing 50 secure
as loans upon real estate. The failure of several
Of these loan and trust companies. IT, is feared.
will be followed by others. The reason for such
failures is apparent 10 those who arc experienced
in the way that some OF these companies have
transacted their business in the West. There'is
o large amount of Scotch capita! invested in the
West in the form of such companies. Seven and
8 per cent have been paid 70 investors who have
sent their money ont to these companies 10 be
loaned upon real estate. Some of the companies
have done a safe and careful business, following
only conservative lines and advancing money only
in a proper proportion upon a correct valuation
Of the property offered as security. But, on the
other hand, there are companies which have worked
on a wrong principle. This has been TO pay the
local agents commissions on the loans made. IN.
stead Of fixed salaries. The result has been that
the agent has always had il as an object 10 make
the largest possible amount Of loans. This has
led him 10 lie over-eager and careless in esti-
mating the value Of securities.
heard the other day of a case which is a fair
sample Of the way real estate companies are hum
plugged, where their inspectors are careless. 4
certain individual in a Western town had TWO lots
which he valued at s., 900. In the depreciation
Of the market. he found that he could not obtain
more than 81 800. He was anxious, however, TO
have $1,000, and he took this way 10 obtain it.
lie entered into a conspiracy with q young man
in the town, who had no property and no fixed