Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1895-02-14

What the Oapital uemanus ID HlHW
that will make the property 30 taken
under mortgage satisfy the debt in
full. All distractions should be re-
moved that are in the way Of the
prompt collection of mortgage or
other indebtedness. When q man
cannot pay the interest and principal
upon a secured debt there is no reason
OF right or justice why he should not
forfeit the security which the party
loaning the money was satisfied to ac-
cept in the first place On the other
hand, the individual who gives up the
the property he mortgaged as secu-
rity should not be harrassed by per-
sonaI Judgment afterwards.
Every guarantee and protection
should be given to the man who
loans his money upon property that
will enable him to secure without de-
Law. defaulted payments or the prop
erty on which his money is secured.
There, however, his rights should
stop, and the man who has been un-
fortunate in not beng able to pay the
debt and from whom the security has
been teken, be given a chance No
law in Kansas ought to give chattel
lien upon any man and his future.
The individual who loans the money
is master of the situatian. lie can
say whether he will loan five hundred
or one thousand dollars upon a GER
tain property, and whether at Cor .
or 10 per cent interest. He does not
loan the money upon the basis OF So
curing personal Judgment on the
party to whom be made the loan. He
makes the loan believing that his Sc
curity is ample and that it is worth
two or three or five times the amount
loaned. He makes the loan Us an in
vestment expecting that it will be
paid when due. He does not want
the property, presumably, and as a
protection pgqlnqsst its falling into his
hands, loans 80 much as he believes
can be promptly paid. The whole
transaction is based upon the belief
that tue security in itself is ample to
protect the debt, or else that it would
be good speculative property il it fell
into the loan-maker's hands by fore
closure.
1t will be said that a law Of this
kind would injure the loan business
in Kansas Let ms see about that.
Loans are ordinarily made upon one
third the valuation of the realty. A
law of this kind, cutting off personal
judgments, would probably make
those loanipg money more careful as
to valuations. They would rate prop
erty at it's absolute cash value, and
possibly, in view OF the fact that they
cannot get a personal judgment, will
only loan to the amount of one-fourth
the value Of the property. What Of
it? It will be better for both the Dor
rover and the loaner. A personal
Judgment is only aa element Of secp-
rity, not seriously considered by one
out of a thousand making or securing
a loan. J9,
Another phase Of this question
worth thinking Of is this: A mar
whose property has been taken under
mortgage, and against whom there il
large personal judgment, finds il
almost impossible to again engage il
business, Morally he feels that h'
does not owe the debt, but legally hi
doee, and he adopts the methods nee
essary to evade the action of thu
courts until he is prepared to com
promise with the parties who hole
1 the Judgment, The fact is that mel
\ who SECURE these personal judgments
take them saying: 1T does not cos
anything to secure the personal judg
meut when the property is s1ld, al
it may be worth something some day,
No one thing could be done by th
present legislature that would be O
greater help to the thousands of mel
who may yet haYe their property sol,
under mortgage, than to relieve ther
of the possibility Of a personal judg
ment following them after their prop
erty is gone
JUSTICE BREWER ON KANSAS
United States Justice d. j. Brewer
, in his address in Representative ha