The Houma courier. (Houma, La.) 1878-1939, 1896-12-26
TIE RIAL MEANINi CT DEBT.

P~icayune.
It is a common, Ebut false, notion
that q country or community in which
there is a great deal Of borrowing Of
money by the people is a country
plunged IN distress, because it's people
are ii debt.
When people who are engaged in
business, or in conducting industries.
borrow money actively, it is a sign
that they are carrying on extensive
operations, They can get money
because they have llecredituecessary
which means that they have propelt t.,
either ia the form Of securities, or
merchandise, or real estate, which
they can pledge for the loans. TSey
can probably use the money in
extending their business, and so they
borrow it where it is to be had, and
money is always to be had on good
security,
The Baltimore Sun, which has been
delving in the records Of the census,
brings ont some ti~guresofthe COMPARE
tive indebtedness of the people Of the
several States. The records show that
in New York city alone there are more
mortgage debts aud debtors than in
half a dozen States Of the Union. The
latest available census RETURNS show
that the mortg4g debts on farms and
homes in New York State amount to
More than double those on all the
Southern States from Maryland to
Texus, although the population of
these States is four times as great as
that Of the Empire State. The mort
gage indebtedness Of New York
exceeds by 500, 100000 that all of the
States aud territories W st of the
Missouri River. Tho four typical
Northern and Eastern States commonly
spoken Of as the creditor States-New
York, Pennsylvania, Massachusetts
aud New Jelsey-owe more than
500, OOO, 900 Of mortgage debts in ex.
cess Of the similar debts owed by the
seven Central States of Ohio, Indians,
Illinois, Michigan, Wisconsin, Mime
sofa aud Iowa.
There aIe six States in which the
mortgage indebtedness of the people is
above 800, 200, OOO-namely, New
York, Pennsylvania, Illinois, Ohio,
Iowa and Massachusetts,. These six
States contain only one-third Of the
total population Of the United States,
but their people owe more than
oneIsalr OF the grand total Of all the
MAJ tgage debts of the country. The
Southern States, all aaded together,
with a population of "a 0O0,OOO have
a total mortgage Indebtedness Of
si7l ,O0O, OOO. The single State Of
Pennsylvania, with only one-qaarter
OF the population, owes S2Il 100000
on mortgages. Tho single State Of
Illinois, with only one-tifth Of the
population, yves sl77, OOO. 9l0 which is
SO, 100000 none han the aggregate Of
the fifteen Southern States.
Now, what does all this mean2 Do
the figures show that New York, New
England aud Pennsylvania are about
70 be plunged into bankruptcy 2 Nota
bit of it. These are States in Which
there is the greatest amount Of money
to the head Of population. Those are
States in which the people have the
most money in the savings banks.
They are States III which there is the
vastest commerce, thu most extensive
manufacturing and the greatest bust
ness activity. Tie business community
uses Immense amounts of money, and
necessarily much of it is borrowed.
when nobody who can put up the re-
CURED security wants to borrow
money, 1t shows that business is ter
ribly duh aud timesarebad. When the
banks and capitalists are busy leuding
money, it shows that business is
active and times are good.
Taking mortgages does moi mean
ruin and poverty, but growth and
expansion. 4 is only when they are
foreclosed and sold out at sheriff.
sale as tho result Of stagnation aud
poor business, that the mortgages
have any sinister character.