The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1892-06-24

Inc following interesting communica-
tlon from Edward Atkinson to the Man
ufacturers' Record presents novel plan
tor increasing the value of real estate as
security for loans:
49,. BosToN, MASS.
Editor ManWaeturerS Record:
l observe that an article which lately
wrote In the Century magazine upon the
Torrens system of registering land titles
has attracted the attention of General
Alexander and other of my Southern
friends. may venture to call attention
to matter whereby land may be con-
verted into a security on which money
can be borrowed from banks and bank
ers without the necessity of making a
conveyance of the land as security for
each loan. 1t is q plan which has not
yet be en- adopted, and to which there
may be objections unknown to me. but
in all but one respect the suggestions
that make are part of the common
practice in many places, especially in
Philadelphia and Baltimore. What 7
suggest is this:
The conveyance of land by the ordi
nary method is by registry of deed, un-
der the guarantee of title insurance
company and on condition OF the paw
ment of ground rent without any
promise to pay principal lump sum Sc
cured in part by mortgage in the usual
way. do not promise perpetual ground
rents, but ground rents terminable at the
option of the buyer or lessee on given
notice, not terminable at tho option of
the seller or lessor. 1t is the common
practice, notably in Philadelphia, to sell
and convey land subject to terminable
rent under an insured title to capable
men, who, being in good health, also
get their. lives insured for an amount
equal to the valuation of the land. The
lessees then join building society, and
thus procure the means for building
house on the leased lot, becoming ulti.
mately their own landlords By paying up
their assessments in the building society
and by ultimately compeunding the rent
by payment at a valuation in one sum
either in installments or in one payment
The plan which suggest is to add
one single element to this method, name
ly, that the obligation to pay rent upon
the land should be represented by what
may be called TENT orsrentA certificates,
to be registered at The :sss of the, title,
{palrapce conapaa o$isions.
) Daf8 <t1<us 60
tain period in ad56uS pA3 9z6nt Of
rent at such office OF y tRe lessee of
the land may become entitledt 10 purchase
each or all of these rent 9deftificates by
deposting at such office. of registry
given sum of money for leach certificate.
Example: Let it be assumed that John
Brown buys or leases from James Brown
a'lot of land of which the valuation is
$1,000, upon which he builds house
valued at $4,000. The ground rent is to
be 500 year. This rent Is represented
by ten registered certificates of rent, each
of $6 per annum, provision being made
that at any period three months in adj
vance of any part of the rent becoming
due, John Smith may file q written no
tice at the registry that, on the payment
of 500, together with the rent then due,
he desires to become the owner by pur-
chase of rent certificate No. 1, and so on
through Nos. 2. 3 up to 10. When he
has purchased all the lent certificates at
500 each he will have become his own
landlord. These rent certificates consti-
tute lien upon the land Is good to him,
John Smith, rs they are to Che original
holder, and he need not cancel them.
Or let us suppose that John smith, be-
ing the owner of land free Of encum-
brauce, upon which his house stands and
which constitutes his farm, executes rent
certificates recorded upon that farm with
q trust company, title insured, and him
himsSlf becomes the posScssor of such
certificates, would no, these become the
first lien upon the land, not as a mort
gage, but as lien, subject to foreclosure
If the rent is not paid. Would not these
transferable rent certificates then become
available to be deposited with banks,
bankers or trust companies as security for
temporary loans frorl season to season2
am not lawyer and cannot tell what
techni al difficulties there may be in the
way, but this seems to me to be the easi-
est way, under our present foim of regis.
try of title by deed, to put land into a
form in which it can be assigned as Sc
curity for temporary loans without going
through an examination of title, and
without the execution Of papers of con.
veyaDce and mortgage each time that a
loan is made.
In presenting this subject, permit me to
call attention to the fact that the craze
for more deprecated money in the form
of deprecated silver coin or for govern
ment paper or for government loans, has
about run its short and dangerous course
The South, Of all sections of this country,
being dependent upon the sale of its ex.
cess of product for foreign export, has q
greater interest In maintaining the present
standard of value on the unit of gold
dollar than any other section of this
country. Its lack has not been want of
monev. but want of fcredit--want OF bank
ing 1nstitut ons, ana want or 1acilllIes
for, borrowing money even on good secur-
ity. The South, of all sectious Of this
country, can ,east afford the discredit Of
debased silver, and also possesses the
surest control over the gold of the world,
II IL chooses to maintain the standard Of
value. 1t, therefore, seems probable that
the movement which is now being made
for taking the tax off the circulation OF
State banks, supplemented by methods
which may render it easy to borrow true
money of the best kind on the best kind
Of security, will presently plice the South.
ern States again on the road to progress
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