Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1891-02-05
Redemption Laws.
To the Editor of THE REFLECTOR.

| To the Editor OF The REFLECTOR.
In an editorial article in the DAILY
REFLECTOR of last Saturday under the
head of "What Kansas Needs" the
writer says that "Kansas does not
need any fool mortgage stay laws"
This statement unaccOmpanied as 1t is
by any qualifications or specifications is
somewhat ambiguous and leaves the
reader somewhat in doubt as to
whether the writer is opposed to all
'stay" laws, or whether he refers to
some certain kind of stay laws which
he wishes to class among the ''foOls."
Whatever the position of your paper
may be upon this question, desire to
make few suggestions of my own in
favor of liberal redemption laws in
case of mortgage foreclosures in Kan
sas.
The idea that money is loaned TO the
western farmersby the eastern capt.
talist for the accommodation" of the
farmers is a very prevalent and a very
favorite one among those who repre-
sent the capitalist. The purpose Of
prOmulgating this idea Is to furnish
some plausible excuse for the enacting
of laws which shall protect those who
accommodate rather than those who
are accommodated.
So far as the motive of the lender is
concerned this idea is wholly erroneous,
In making a loan and taking his secur-
ity nothing is more distant from the
mind of the lender than the accom-
mediation" of the borrower. In fact
of the many millions of dollars now
secured by first mortgages on Kansas
farms, probably ninety nine one humid
redths of it is owned by parties who
never were in Kansas and who never
saw or heard of the mortgagOrs until
the mortgages were received by them
in their eastern homes.
The investment of money by eastern
capitalists in farm mortgages is BUSH
ness proposition, pure and simple.
They invest their money solely for the
income they expect to derive from the
investment. They have just the same
interest in the man who borrows their
money that the manufacturer has in
the customer who buys his manufac-
tured goods or that Jay Gould has in
those who patronize his lines of rail-
roads. They love him for the money
he pays them. The negotiation of a
mortgage loan is as much for accommO-
dation of the lender as the borrower
and whenever there is a demand for a
loan, there is legion of loan agents
who are ready to make, provided al
ways that the borrower will pledge as
security therefor property whose value
is three times as great as the amount
of the loan desired.
1t is right that the lender should
have ample security for the money he
invests. 1t is right that the security
should be available to satisfy the mort
gage in case the mortgagor fails to pay
it at maturity. In this particular the
money lender has an immense advan-
tage over the man who invests his
money in productive industries. The
manufacturer when he invests his
money in his business must himself
assume all the risks of competition,
low prices, high freights, fire, accidents
and possible failure, but the capitalist
who invests his money in farm mort
gage securities is absolutely safe. He
can smile at bad crops, low prices,
ruinous freights, hog cholera and cat
tie epidemics. His security is as firm
as the eternal hills. 1t is true that
dishonest and greedy agents may In
some instances succeed in placing loans
on insufficient security, but these are
the exceptions and ought in no posi-
Gle manner be permitted to influence
the laws which should govern mort
cages given in good faith and with
honest intentions.
The capitalist who invests his money
in farm mortgages invests it for the
interest it will bring him. If in his
greed to increase the size of his in
terest coupons he loans more money to
the borrower than the borrower, taking
into consideration his condition and
circumstances, could reasonably be ex-
pected to pay at maturity, then the
law should not permit the lender TO-