Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1892-03-16


edness of other classes of citizens, and
indicated failure. None of these state
| ments or assertions, oft repeated as
they have been, are sustained by the
facts.
Men who live in towns and in cities
borrow money to buy homes, to build
houses, TO transact business.
Manufacturers and merchants borrow
large amounts and mortgage their
homes, their factories, their stores, and
their stocks, and, in large majority of
| cases, their securities, be they mort
cages on real estate or personal proper
ty, are evidences of business transac-
tons which are expected to and do
| realize gains to the borrower as we'll as
interest to the lenders. Undoubtedly
farmers, as we'll as men of other avoca-
tons, sometimes borrow injudiciously,
and mortgages on the farm, home, fact
orv or stock becomes q burden.
The farmer is not less shrewd, indus
triouS. economical and careful than the
men of other avocations, and, as a rule,
is less in debt, has better home, and is
more successful than the average bust
ness man. There are less failures
among farmers than among any other
class.
1t appears from the report of the
comptroller of,the CURRENCY that in one
dav alone the loans by forty-seven
banks in New~1ork City on real estate
and other securities amounted to 1927,
l10,55l. In Chicago in one day twenty
one banks loaned $S7, 565, 1917. Nine
banks loaned in st. Louis in one day
$27 ,S64, l07, and 1917 banks in the cities
and towns September %, 1891, loaned
out ST ,9S9, So, 240. This does not include
half of the banks or the immense sums
loaned by individuals. Let it be noted
these loans were. the transactions of but
one day.
The loans on real estate and other Sc
curities made by 1889 state savings, pri-
vate banks. and loan and trust Compa-
MES during the last fiscal year amount
ed to So, 06Q, 407 ,667.
Furthermore, in the states where
there is apparently large farm in
debtedness there is likewise a large in
debtedness in ether real estate, such
as city and town lots. In a recent re-
port from the Census Office on this sub
iect of farm. homes and mortgages it ap-
pears that IN the state Of Iowa, of total
real estate Indebtedness OF S199, 774,171,
the mortgages onacfes were S149, 457 IA,
and So, 311 ,027 was on lots in towns and
cities. In Kansas 74,720,07l was on
town lots. In Illinois $l65, 2S9. 112 was
on acre property and $219010.03S on
lots. 1t is a fact that the older the
communities the greater are the debts
in towns and cities as compared with
the Indebtedness on farm property. The
Chicago debt alone was S191 100000, or
SIC, 000,0 900 more than the entire farm
indebtedness of Kansas, or SAL 900. 900
more than the farm Indebtedness of
Iowa.
From this same bulletin issued by the
Census Office itappears that about 20 per
cent. of the money borrowed on farm
mortgages IN Kansas was for the pur-
chase of real estate and improvements,
nearly per cent. for business, and only
about - per cent. farm and family en-
penses, the balance to purchase live
stock and other personal property. In
Iowa the percentage of mortgages given
for purchase of real estate and i'm
prOvements was about 81 per cent. of
the farm Indebtedness. In Illinois the
percentage of Indebtedness used in the
purchase OF real estate and in improve
ment was about so. 1t will be seen that
very large portion of the indie bted-
ness represen hts thrift and not distress,
the acquisition of more property and
better conditions by improvements, new
machinery and more live stock.
From the annual circular of r. G.. Dun
4 Co., OF the failures of the United
States for the calendar year 1891, we
learn that the number of failures in
business in Massachusetts was 764, and
the amount of liabilities was $l3, S73, 921.
In Kansas the number Of failures was
275 and liabilities were So, 1926, 331. In
Pennsylvania, /, 1888 and liabilities, S25,-
All ,5S7. In Illinois, 531 and liabilities
Sc, 303, S14. In Connecticut, number of
failures 1S5 and liabilities s., 49, 20. In
Iowa, number of failures 1S5 and liabil-
tiles 81 ,267 ,704. 1t will be remembered
that Pennsylvania, Massachusetts,, and
Connecticut are great manufacturing
states, are much older, their business
methods more settled, and they have
accumulated more wealth by the saw
ings of over 100 years. They were not
distressed by loss of crops, and yet'in
those three manufacturing states the
failures in 1891 amounted to z, 240 anu
the liabilities were of the large amount
of $40, O40, 52S, while the number of fail
ures IN the three agricultural states of
Illinois, Iowa and Kansas was 991, and
the liabilities amounted to SIS, 1876, $40.
There were | ,249 more failures and $685.
S443 $40 more liabilities in the three man
utacturing states than in the three agri-
cultural states.
Furthermore, it appears from the an
nual report Of the commissioner of Ia
Dor statistics of the state of Connect
cut that the per cent. of profit realized
on capital invested in several leading
manufacturing enterprises during 1890
was as follows: Cotton GA; woolens,
7.57; leather goods, 6.28; rubber goods,
3.42; clocks, 2.13; buttons, 7.49; general
| hardware, $40, or an average of not
quite g per cent. on the capital invested
IN these seven industries.
The farmers Of the West would not be
content, if from capital Of 900 in
vested in farm and stock, they realized
but $500, or 5000 from $4,000, 81. 200
from an investment Of $4,000, or 81 800
from an investment of $4,000, out OF
which they must pay their family ex-
penses, and all other expenses, educa-
ton Of children, ETC., as do owners OF
capital invested IN the manufacturing
| industries. This is one reason why
large amounts of money of the Eastern
states seek investment IN the West, be-
cause the returns are larger than from
/ i o.