The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-22
Gov. Morrill,. or Kansas on LegfSiasscn
Hostile 10 Capital
r-ors sae Last Message OF Gov. Morr!ll
~

run 10WH Bill
The past TWO years have witnessed
rapsa withdrawal Of capital from the
state and the amount would have been
much larSxr IL 1, could have been col
iected- Il IL estimated that 81. Qse.eso has
been Withdrawn the past two years ~
parties in the East. who had loans Sc
cured by real estate. ard who have lost
confidence IN Kansas investments; while
nearly all the large insurance companies
and savings banks which have been ac-
ctfstoraed TO make loans here positively
refuse 10 take any new mortgages until
the laws are changed
I take Il for grained that there VIII Be
no difference OF opinion as 10 the a6visa-
biIity az securing investments OF foreign
capital The wonderful development CT
our grand young s:ate-unparaileled In
the history OF the worid-has been due, 10
a very great extent. 70 the free invest
nent Of capital from the EaStsrn part or
the country. This has been In the main
largely beneficial 10 both sections. The
lender has received a fair rate or inter-
est and the borrower has In most cases
made money by his investment, while
thousands OF others have been greatly
benefited by the rapid development OF the
state and the consequent Increased value
OF ali property without these invest
ments there would be few miles OF rail-
road 81 opera ton IN our state today
II Is worse than idle-it Is simply 1lotic
to brand every Eastern man who has
sent money TO the state to be In astea
! as rohber and an enemy; and the results
OF this course have been 20 work 8 serious
injury 10 the borrower In fact. but for
the impairment Of our credit by the legts-
lation under discussion and the public
sentiment IL represented there would
have been no such demand for the pay
rnents of mortgages. from which We have
suffered so immeasarSbly, but lenders
would have sought 70 extend their loans
at reduced rate OF interest IL Is a we'll
known fact that the large part OF the
money invested in mortgages Is either the
property OF people OF small means who
have retired from business and live on
scanty income. or of savings banks and
life insurance companies WHO hold In trust
and loan the hari-ea.ued savings of the
poor.
The lender as a rule does not ask any
consideration. he can and viii send his
money here when he is satisfied with our
securities, and he can withhold IL when
he is not He is free to go or stay as he
pleases. and I have never yet been able
10 discover that sectartan beliefs or poll
teal views made any difference with the
money toaGer in the matter or his consid
Grafton OF investments. IL Is quite differ
ent with the borrower: he Is here 10 stay.
Ia already in debt. and needs n most
cases an extension OF time In order 20 help
him TO pay his liabilities. II is not
question with him whether he Will con-
tract a new debt: he already has the
debt hanging over him. and his greatest
need Is more time In which 10 meet 1t at
a lower rate Of interest.
II - hardly necessary to discuss here
the question OF whether the mortgage in
dehie3nes OF the state has been benefit
or an injury II exists. and the great mass
Of our people desire TO honestly pay their
debts ar the earliest possible moment IL
Is a gratifying fact that can properly be
mentioned In this connection. that the
census returns show that three-fourths
OF the mortgage Indebtedness represents
either the purchase money OF the farms
Or permanent improvements thereon. And
the further fact might be mentioned that
the increased value OF the real estate In
tha state from fS0 20 ISsl, the period
when most OF the debit was created. was
/ largely n excess Of the total ~ all mort
/ cages, and nearly sufficient 10 pay the
ea;ire Indebtedness and all OF the inter
cSt thereon for the ten years And this
increased value vas largely the result OF
tte enterprise and energy that PROMPTED
men 20 BUY farms ana - place MORTGAGES
on tho farms they already owned, that
they might Increase their acres or make
/ better Improvements thereon. The present
condition. with confidence entirely gone on
the part OF investors. Is an unfortunate
( one Cor the borrowers. While the return OF
( favocabls agricultural cou5f icns a a good
crops would - 81 in1uertaat element IN
restoring confidence. Sill Il = not The rr.n-
eipai ore. sn1 the strongest proof OF this
( statement is found IN the fact that tAe
/ money OF real estate loans can be CO.
/ taSued raucs more easily. ard a less rates
| % interest. f. Missouri and Nebraska
than Il can II Kansas
There are two important considerations
I that are taken into account by every
( prudent, careful investor The first Is the
/ complete protection from loss. ne ahso-
/ late assurance that the loan VIII Re- paid
arr the other IS the proguptnesS with
/ which The debt can - collected. in case Il
/ IS necessary 20 resort 20 forced sale
/ of the security. Yea may enact as many
! laws as yoa please. but you cannot ais
/ tarh The !ysru tsbis law Of trade that
/ makes the rate OF interest depens on the
| security and the ease with which the io2n
| can BE- converted tnto ready money; ard
1 any legislative enactment that dapre-. tes
! the security ana lessons the aAifitv 20
! force the collection ~ the debt fncrea se<
/ the rate 81 interest ans works common
/ hardship on all AcT-cws-S. T27e- the
+ rrsssu; law ;ne borrower car. vsf.Aon,
I paving IN crest or taxes fetaia THE cozcrol
/ 60 the property pledged fo- security for
! two ar three years. ard car cause xe-i-
! oeS depreciation IN sts value. ThfS fat
! would p-es8pE every conservative investor
{ 70 commence action 70 ferec'oSe ax soon
4 as there IS any default - Interest T-rSa~
! s prompt foreclosure iaw she lender
wc9ii. 3n mast eases. exercise greater ien-
( fes11y-, knowing thar re has tNe power a.
+ any ttTo@ @ coil@ct his debt when ne Tr7s
! ssat tire debtor - making 10 effort 20 pay.
s x - 8 r2rS tSsas IN Kansas - gnf a
Leader Who wtG rot ~ iaE3snt wsth = husr-
{ rover who Is making al earnest ho,es.
cheerful effo~t to rse@s his oh2sga tfo-s
The proceedings 81 foreclosure should ~
/ mate as simple ard inexpensive as 4. -
possible 20 make them. with due regard
70 re rights or the Eso~t-agcr. TIE MIS-
sea-s fora % trust deed has proven
after many years - srts}. very xa.Fxfse-
terry Something - tAsf character with a
/ r,roy3Ston that the gnortEaxur shaufa have
tAa privilege 81 redemption Cor twelve
+ months. ~ paYiHS taxes. insurance a-4
+ interest. would Doubtless - Satisfactory
( - ne borrower ard isr6e-. am can't
ce1s trait tire best Interests % al classes
would hs promoted ny tae enactment OF
SUCH laws as worf2 far3 20 restore roze-
} cRaes 81 oar ability AS1 willingness n
/ promptly meet our obligations