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

e | a.. Interesting communities
.on from Edward Atkinson to the Mar
ufacturers' Record presents a move, MO,
: for increasing the value of real sst,t. a =
. security for loans:
r, BosroN, MASS.
:, Editor Aan4facturers' Raoord.
observe that an article which ,at.,,
wrote In the Century magazine upon th;
iorrens system of registering lona t;,Ia,
mas attracted the attention of Genera
Alexander and other of NV Soutberr
friends l may venture to call attention
70 matter whereby land NAV be con.
Verted into security on which monev
can be borrowed from banks and bank.
er' without the necessity of MAKING .
conveyance of the land as securitv f,r
eacn loan. 1t is plan which has NOT
YET een adopted, and to which there
may oe objections unknown to ms but
IN al put one respect the suggestions
that ! make are part of the Common
P1aclee IN many places, especially in
Philadelphia and Baltimore. What T
suggest is this: ""'
Inc conveyance of land by the ordi
nary method Is by registry of deed. nm.
oer the guarantee Of a title insurance
company and on condition of the nav.
ment OF ground rent without anv
promise to pay principal lump sum Sc.
cureo 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 the onion ~
the seller or lessor. It is the commnn
practice, notably in Philadelphia. to sell
and convey land subject to terminsblo
rent under an insured title to capable
men, who, being in good health also
get their. lives insured for an amonnt
equal to the valuation of the land. The
iessees then join building society and
thus procure the means for buildina
mouse on the leased lot, becoming uIt;.
mately their own landlords by paving mn
their assessments In the building SOCIETY
= and ny ultimately compounding the rent
Dy payment at a valuation in one sum
satncr In installments or in one payment
Inc plan which suggest is to add
one single element to this method, name
Y, that the obligation to pay rent upon
me lana should be represented by what
~ nay lIISas Rs SalItsdr etr rsRt re UoT
ain period in advance sSa payment OF
ent at such office Of registry the lessee of
he land may become entitled to purchase
.ach or all of these rent certificates by
at such office of registry a
given sum of money for each certificate.
Example: Let it be assumed that John
Brown buys or leases from James Brown
, lot of land of which the valuation is
81 900, upon which he builds house
valued at 81, 1000. The ground rent is to
be $50 a year. This rent is represented
by ten registered certificates of rent, each
of s. per anuum, provision being made
that at any period three months IN adj
vance of any part of the rent becoming |
due, John Smith may file written no
tice at the registry that, on the payment
of 800, together with the rent then due,
he desires to become the owner by pur-
chase of rent certificate No. /, and so on
through Nos. 2. 3 up to 10. When he
has purchased all the lent certificates at
800 each he will have berome his own
landlord. These rent certificates consti
iute lien upon the land as good to him,
John Smith, as they arc to s..e original
holder, and he need not cancel them.
Or let us suppose that John smith, be-
ing the owner of land free Of enc;;ii-
brance, upon which his house stands anu
which constitutes his farm, executes rent
certificates recorded upon that farm with
q trust company, title insured, ana MN
hims If becomes the possessor OF such
certificates, would no these become the
first len upon the land, not as mort
gage, but as a 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 1or
temporary loans from season TO seasonf
7 am not a lawyer and cannot tell what
techni al difficulties there may he in the
way. but this seems to me to be the easi-
est way, under our present toim of regis.
trv Of title by deed, 10 pat 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
veyapce and mortgage each time that
loan is made.
In presenting this subject, permit me to
call attention to the fact that the craze
for more deprecated money i'll the form
of depreciated silver coin or for govern
ment paper or for government loans, has
about run its sh rt 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
: greater interest in maintaining the presen
standard of value on the unit of golt
) dollar than any other section OF thi
Il country. It's lack has not been want
money. but want of Credit-want OF bank
ing lustltut OPS, ana want OF 1aciille
. for borrowing money even on good secui
= ity. The South, of all sectious Of TIL
country, can ;cast afford the discrcdit Q
!, debased silver, and also possesses I'd
!. surest control over the gold OF the worlo
- IL it chooses to maintain the standard
value. 1t, therefore, seems probable ths
l the movement which is now being mac
n for taking the tax off the circulation
= State banks, supplemented by metho'
which may render it easy to borrow tr'
money of the best kind on the best XII
j. of security, will presently pl zee the So"t
d ern States again on the road to progrt
d and to greater and rcater developmeI
d In is with this end in view thar p,
Of sent these somewhat crude suggestions
at readily converting land into bank u
in security on which loans may be ncSoti
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