The morning call., 1892-02-18
DEBT IN ILLINOIS.

So much has been said pro and con aOOnt
the mortgage Indebtedness If the States OF
the river valleys that the census bulletin on
the debts of landowners in a typical State
-IliuOiS-wiil be studied with interest.
Illinois is one Of the great prosperous
States of the Union. It's area Is $500
square miles, One-third that of California;
its population is 3,S26.0OO, more than three
times that of this State. For some years
past, however, the farmers of Illinois have
been complaining that at the current price
Of wheat and corn they were merely work
ing for Eastern capitalists who had lent
money on mortgages on Illinois farms.
On referring TO the census the reader
learns that the actual amount Of mortgage
Indebtedness in the whole State is 1891, 299.-
150-SlC0 per head Of the population. This
is divided between mortgages on acres, IN
other words, farm MORTGAGES, and mortgages
on lots, or city mortgages. The latter eX-
ceed the former 10y about onp-third. In
them, however, as they are chiefly incidents
of real-estate speculation in cities, the pub
lie are but slightly interested The farm
mortgages deserve more general attention.
1t appears that on acres valued for the pur-
pose of taxation at SO % per acre there is
an average mortgage of S15 80 per acre. Or
in other words, the farm land Of Illinois is
pledged to creditors for something like 40
per cent of It's assessed value. 1t is no
wonder that the farmers complain. It's
question whether at any prices Tor cereals
lard so heavily incumbered can yield lIy
ing to its nominal owner A farmer who is
cutivating 100 acres must devote 40 Of them
+ paying the interest on his mortgage, and
If his crops run short even that proportion
will not suffice. OF course, if he could
raise thirty or forty bushels OF wheat to the
acre and sell the wheat at 81 % a bushel on
the farm, as farmers used to do when the
Illinois Central Railroad was built, he could
meet his interest charge without difficulty
and might in time pay off the principal, but
when bis land will barely average eighteen
bushels to the acre and he is lucky if he
realizes 50 cents a bushel on the farm, his
case assumes different aspect.
There is no escape from the conclusion
that the Illinois farmer does not own his
farm. Under the old common law in En-
gland a borrower on bond and mortgage
handed over his title deeds to his creditor.
Our system Of registry and record is an inn
provement upon this method. but after all
there vas a good deal of rude common
sense in the old plan When a man mort
cages his land lie parts with it, and his inter
est is reduc d to an equity Of redemption,
Mortgages always mature when debtors are
least able to meet them. Creditors always
want their money just when debtors have
none, and the pledge must be sacrificed TO
satisfy the debt. In some Of the Western
States. where the foreclosure Of mortgages
is gradually changing the ownership OF
land, the cruel straits of debtors have led
TO the enactment of strong laws with curl
Gus contTivanceS for preventing sales under
foreclosure. But these devices have merely
delayed the collection Of debts without bet
tering the condition Of debtors. and have
operated to drive capital Out OF the States.
The man who owes must pay if ne has any
thing to pay with.
The magnificent States which occupy the
central valleys If the continent are doubt
less destined to become centers Of vast
populations and great wealth. But it seems
that before they begin TO realize that destiny
they must 90 through a period Of such
agony that the original settlers will not
live to see their promise fulfilled. They
have been set back by tile very amplitude Of
their resources and the excellence Of their
credit Fifteen and twenty years ago CAPT
taIisls from all parts OF the world layished
money on them. An IMMIGRANT could buy
q farm in tie Mississippi or Missouri val
legs on credit stock it on credit, get his
seed on credit purchase years supplies on
credit-and, according to the circulars Of the
immigration agencies Of the day. would be
out Of debt and own his farm clear after two
Laryests. Uuhappily this halcyon prospect
assumed that the skies would never cloud
over. And they dii quite often. Dr0ughts
came, and gTaSsh0ppers, rust and mold and
blight; they came not once, but year after
year, and the haryeSts came not. But the
interest Oh the mortgage was always due on
the same day. Then the old struggle Of the
debtor to escape the inevitable was re-
newell. improvements were sacrificed,
farms were parceled. new mortgages con
tTacted wherever lender could be found
every resort was tried, but nothing could
await but high prices for grain and plenty Of
it-and these the farmer could not com
mand. The nnal result is portrayed in the
census bulletin.
Political economists have sometimes pro-
claimed that credit IS as good as capital
So it is in certain cases. But it is a two
ed ed weapon, and lie who draws it often
lives t. regret that in the hour Of tempta-
ton he enjoyed opportunities OF using other
peoples money.