Omaha daily bee., 1891-02-25
rRrrH ABOrr FlRMMORrG AdES

TRrTH ABOrT FARM MpRrG AdES,
4 recent bulletin from the ccusas
bureau throws some light on the quc'-
tou " farm mortgages in the south and
wc-t, which is just nova very timely
topic Alabama and Iowa are takeuOs
Representatives states Of the two sect IONS.
The total NOR gage indcbtc dncSS in
force in Alabama January /, lNlO, was
So. u2I, ,9S5 the average debit per capita.
S26. the per cent of acres mort gagged 55.
In Iowa the total mortgage Indebtedness
was 3l99O5i, ,oj7; the per- cent Of acres
mortgawod, -. f. the debt porcap,ta SlOi
The interest rate in Alabama ranged
from 10 40 and in Iowa from 10 to2O
per cent.
Aniutcrcstiur feature OF the report is
that showing the causes for which farms
have been uortgaged. which arc very
similar in both sections. Tn" average
| farmer borrowed money on his homo TO
! repay purchase money, to make improve
mcuts or TO enable him TO buy other
land. 1t is stated that the borrowed
| money Capitulwa used to some cNteut
| to pay living expenses, but no igwcs
! are furnished on tins subject, and it is
not lil,cly that any considerable portion
! Of mort gagc indebted ucss can be charged
to that item. 1t woild indeed bo dis
coum".ug if such we're the ease,
several important facts arc brOugh t
out in the report, 1t Is plain, nthe
first place, that farm mortgages in tho
west and south are not aus universal aS
has been claimed. If not more than .. |
per cent of thcacrclEoin in Iowa is today
under mort gage. the owls involved in
the system are much less general than
has been claimed. 1t is doubtful ifany
Ot her line of business in the country can
make a better showing OF assets and
liabilities than could be computed for
thoUgricultural industry ON nsucha basis,
c Itis equally apparent that the vast
propOudGraucc OF mortgage indebted
ness in the west represents the purchase
and improvement of lands. In other
words, it represents the development OF
the country and the operation of the
forces that increase the wealth of the
state and nation. 1t is sccrtainly no dis
| NItull " Illt Nb0t lIluJ lublltl - ''l7
rowed largely and generally for this
purpose. Money is as essential to the
development of new countries as sunlig ght
and moisture to the growth of crops
This being 50, how short.sightcd must
that people be who would deliberately
set to work to keep capital out 10y the
enactment Of more vigorous laws that il
meets elsewhere,
a feature of the report by no means
as satisfactory, however, is the showing
of interest charges. Ten per cent is the
} minimum rate, both in the west and in
the south, and it ranges upward until in
some cases it touches 40. 1t is u humil.
iating reflection upon our financial
methods that mon are compelled to pay
moro than 10 pen, cent for money Sc
cured on propc rty as substantial rs any
thing that can be offered. A safe in
vcstm ent bearing interest at 10 pcr cent
is as good employment ascapital is justi
fled in asking or labor in attempting II
provide. Everything above that figure
is robbery, secured in spirit OF plum
der by the exercise OF might
against right 1t is entirely just tha
the lawmaking power should be di
rected in all its force against the con
tinuancc Of such criminal methods O
bank ing.
The eastern loaner and the western
borrower are Indispensable to cacl
other. Neither asks more than th
other is willing to grant. The evil q
| he r,rnSput rr,nrtpDpn SYST ON reside : il