The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-04-20

Frequently one hears the remark that
indebtedness is the mark OF prosperity.
OF course this is not true, but it is an In
ference from the truth that indebtedness
is usually an attendant upon prosperous
conditions. There is always vast amount
of capital in the hands OF class who
never invest in productive industries, but
who are always ready to loan to others
that which belongs to the producing
classes In times of depression there is lit
tie inducement to producers to extend
their operations, and as consequence a
less demand for capital. When, how
ever, industries are profitable, business is
extended, and producers become bor-
rowers in order to increase their facilities.
They use the money of capitalists because
their business will pay them a greater in
terest than money-loaners demand, and
thus does 1t happen that the increase OF
Indebtedness indicates a prosperous con-
dition in those lines of business. Many
of our most active and prosperous BUSH
ness men are large borrowers, and as they
accumulate large property and retire from
business, others take their places, enlarg-
ing their facilities on borrowed money.
This condition OF affairs in the business
world has led men TO say that the present
indebtedness of the farmer, as indicated
IN some degree by the census returns, is
not the mark OF any depression IN agri-
culture. Fifteen years ago the mortgage
indebtedness of the majority OF farmers
in the United States was a sign OF reason
able prosperity and great hopes on the
part OF the farmer. Additional acres were
bought and finer barns and houses were
built. Debts were not burdens and
were incurred with safety and easily and
quickly paid.
But the present indebtedness of the
farmer does not present to the honest
student of agricultural conditions any such
rosy picture of prosperity. While q fair
part OF the mortgages may have been in
Cured for improvements and extension of
farm, they have been running for years
and have not been psid of. The interest
Is heavy burden upon incomes, and
there is in majority OF cases no reduction
of the principal. Any careful student of
statistics, so far as they bear on this point,
and close observers will affirm the truth of
this statement.
There is still a worse side to this ques-
lion. A part of this mortgage indebted
ness has been incurred to make good the
difference between the farm income and
the farm and family expenses. 1t is easy
to say that people should live within their
income, but farm incomes are irregular,
and in late years crops have sometimes
failed to pay anything and no one but
dyspeptic could expect that succeeding
years would or could grow worse, rather
than better, failing to make good the short
age of previous years.
1t is not true that all farmers, or even
the majority it may be, have failed to
keep even with the world, but their
freedom from debt is due either to bust
ness ability above the average, or else to
close economy and some deprivation of
!uxurles that are the due of combined
intelligence and capital. II must also be
remembered that a record of mortgage
indebtedness does not measure all the
liabilities of farmers. Small loans are not
secured except by note, and their aggre-
gate is large. The reduction of the cash
buyer to the time-buyer is in line with
present tendencies.
The Indebtedness of the farmers, as a
rule. is not of the Indebtedness of some
other classes. There are exceptions, but
we speak of the rule. Mortgages that
have been incurred for Improvements are
not being paid with any degree Of ease,
and some of them are eating up homes. 1t
Is now unsafe 10 incur any great liabili-
ties fer larger farms, and those who have
done so need to strain every nerve to free
themselves. Close study, business hab-
Its and economy are, we trust, the step
ping stone of such men to a brighter fnan-
ciaI condition