The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-23

TO afford present measure Of rslfes 10
existing debtors and 70 prevent 3 rssaous
s2er1Fics of thsir prsx>srry which already
had suffered gr~a, shrinking ~ yaIGe.
IN addition 10 imposing a deficiency judy
uert remaining ever 70 further e-nhzrrass
the unfortunate deoso~e Viewing the sit
nation IN tss iSyh. ot surrounding CIR
corassAncss. II would seem tnat the legls-
Iaturs ny ire passage pf senate bill No. I
intended 20 provide remedy which wo1li
apply refrospsctiyely ani prospeetiveiy -
al Judgments and thar it is extremely
doubtful whether or not this bill would
oaye passed. IL the constitutional proh1-
hstir as 20 the invalidisg Of the laws I'm
pairing the obligation of contracts hat
been fgily discussed and considered
II the executive should approve This bgIi
Il seems 20 he settled mne9er The law as
expoun5ea by the supreme court ~ the
United States thai Il cannot apply - any
contracts made ~ TIE time of its approv-
al or 20 any Judgment rendered uaon
them Thus II would sab 20 accomplish
the Ssnefceat purpose Of the legssiat Etre
which was 20 provide immediate relief
for existing debtors
The practical question then arises:
What VIII ne the effect apson The flaanciaI
situation IN case OF execntive approval
of this bili9 There has gaafured. or VIII
mature. Z large Indebtedness reaching IT.
% millions ~ dollars. arising out of
loans made In nearly all the large cities
and secured by mortgages on the most
valuable property therein. held by parties
nonresident who have regarded this state
as an attractive field for investment. In
many instances these creditors have con.
stderately forhorre the right 10 press tae
mortgage debtors and have allowed the
interest. taxes and insurance 20 remain
unpaid IN the hope that the cloud Of ad-
NJ zw "A =
prosperity would enable the borrowers to
pay their Indebtedness or make some ar
rangement thar would prevent the sacFi-
flee of the security. Many Of these credi-
tors have consented 10 extend their loans
for long time after making contract for
the renewal OF these obligations
In ali probability the approval OF this
bill would precipirate proceedings for the
foreclosure OF mortgages IN all parts Of
the staee. and. contrary 20 the very inten-
tion OF the measure, infiict hardship and
misery upon the unfortunate debtors X
would prevent the renewal OF mortgage
loans. because that requires a new con-
tract. upon which senate bill No. $. If II
became a law, would operate. IL carried
into Judgment. II would tend 10 prevent
the inVest nent In this state OF capital
from abroad and 10 drive away the en-
terpTising investor whose money is needed
10 develop our resources. II would ham
,%r. restrict and restrain commercial
dealings and intercourse among our own
citizens. II would make an era OF cut
throat. ironclad contracts which would
enable the unscrupulous and greedy
money lenders 10 prey upon She unfor-
tunate Victims uso, under stress Of
cessitous circumstances. would he driven
10 them for temporary relief. IL would
tend to prostrate our industrial interests
and retard our growth.
In view of the foregoing. I am con-
strained 70 withhold my approval Of said
bill. Very respectfully yours.
j. II. MctiEAW. Governor.