The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1892-03-16

dened with mortgages. but that this in
debtedness was an evidence of distress,
and farm indebtedness was more OPP
pressive and disastrous than the indebt-
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 a 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 well as men Of other avoca-
tons, sometimes borrow injudiciously,
and mortgages on the farm, home, fact
orv or stock becomes burden.
The farmer is not less shrewd, indus
| trious, economical and careful than the
men of other avocations, and, as q 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
day alone the loans by forty-seven
banks in New York City on real estate
and other securities amounted to $780,
l10,55l. In Chicago in one day twenty
l.
banks loaned in st. Louis in one day
81, 1854, IO7, and 1877 banks in the cities
and towns September 20, 1891, loaned
out ST. 1856, 1854, 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, 060, 407 ,667.
Furthermore, in the states where
there is apparently large farm in
debtedness there is likewise large in
debtedness in other real estate, such
as city and town lots. In recent re-
port from the Census Office on this sub
ject of farm, homes and mortgages it APP
pears that in the state of Iowa, of total
real estate indebtedness of $l99,04,l III,
the mortgages OH &C les were $l49, 457 IA,
and 500, 3l7 ,027 was on lots in towns and
cities. In Kansas $l74, 720,07l was on
acre property and Sos, 426, 755 was on
town lots. In Illinois $l65, 2S9. 1l2 was
on acre property and $2l9,0l0,03S 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 $l9l 100000, or
SIG, 000, 900 more than the entire farm
Indebtedness Of Kansas, or SAL ,000,0 900
more than the farm indebtedness of
Iowa.
From this same bulletin issued by the
Census Office itlappears that about roper
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 q 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 inn
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 indebted
ness represents 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 X. Ct. Dun
& 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, 1913 ,92l.
In Kansas the number of failures was
275 and liabilities were $5,G25,3 1881. In
Pennsylvania, 1888 and liabilities, $780,
AL ,5S7. In Illinois, 5S1 and liabilities
Sc, 303, Sl4. In Connecticut, number of
failures 185 and liabilities 81, ,020. 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 moro 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 2,240 and
the liabilities were of the large amount
of $40, 040, 52S, while the number of fail
ures In the three agricultural states OF
Illinois, Iowa and Kansas was 991, and
the liabilities amounted to Sl3, 1916, $40.
There were ,249 more failures and $685.,
$40, go more liabilities in the three man
uiacturing 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.l3; buttons, 7.49; general
hardware, $40, or an average of not
quite per cent. on the capital invested
In these seven industries.
The farmers of the West would not be
content, if from capital of $4,000 in
vested in farm and stock, they realized
but 5000, or 5000 from 900, 81 200
from an investment of 1000, or 81 800
from an investment of 1000, 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