The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-11-30


A typIcas Illustration ot what class con-
sfIsuGes the money power" which has
.~roura the Western farmer under foot"
by LaanIng him money. - found IN tie
statement OF affairs Of the Sullivan coun-
~ Cx. III savings hank which recently
closed lis doors. The bank was an old In
ssttutlon: its president and manager was
a man with an established character for
probity sn1 coed business Judgment. and
the deposits were Largely the savings OK
hard working and thrifty people OF small
means. farmers, factory employees and me-
chenscs-
ygber, tha bank closed iss doors The de-
ross,x amounted 20 s. -. 90: and the pres
dent and manager OF the bank. as agent
for the investors. had received and In
vested nearly ssso. GO In addition, making
the total liabilities OF the bank and the
personal liabilities OF It's president about
ona Ard three-Quarter millions Of dollars.
I'll az which was ewing TO thu people in
ons small county. The failure was qua
simply TO the fact that BY Tar the greater
portion Of the money had been loaned on
mortgages on farm and city lands In tie
states OF the far West: no inconslderahls
portion having BEEN thus invested IN the
state OF Washington The persons to
whom the money was loaned have failed
to pay their interest. and In time the bank
became unable 10 pay its guaranteed in
ferest TO dspositors- IL seems. more
over. that a large percentage Of the loans
were made on Representations and guar
antees of Western loan agents, and the
valuations OF property given were excess
sive. A large amount of the money thus
loaned will be lost. because the property
Is worth much less than the amount OF the
mortgages.
The president OF the bank 10 not charged
with any fraudulent action: only bad
judgment is alleged against him; but he
has forestallsd even this criticism BY leav-
ing the country. thus considerably eu-
barrassing the work Of Strengthening our
the banks affairs. He was probably I'M
equal 10 the task Of facing the poverty
and misery caused by the failure OF TIE
bank. in which were deposited the NE
Accommodations of the provident and
thrifty. The stories which come from
Claremont OF the suffering caused by the
loss are distressing. Old people, whose
savings Of lifetime of toll and self-denial
have been swept away. have been COM
PEELED 10 go 10 the poor house, and the
county authorities say that they will have
to provide for many others during the
coming winter.
This Is the money power" which the
p.,ols OF the West were so earnestly Inn
plored some weeks since to assist In
crushing" by paying them back for bor-
rowed money deprecated dollars worth
but half as much as those loaned. and tho
story from ciaremont Is but a minor In
dication of what the proposed crushing
would have resulted In all over the East
With ell the sympathy for the poor
debtors" which Is 30 freely expended,
there ought 10 be some TO spare for the
poor creditors OF the class OF the Sullivan
county bank depositors. They lent their
meager savings which they had put aside
as q provision for old age. money saved
out of incomes smaller than are known
in this section OF country. That money
was loaned to a savings bank. and re-
loaned by that bank TO the people of the
West. principally IN Nebraska, but some
also In this state. The money was bor-
rowed. In the great majority OF cases. for
the purpose OF making further invest
ments, to increase the holdings OF land or
to make further improvements upon land
already held, and at a time when land
values. under the stimulus OF speculative
investments. made likewise with borrowed
money, had become abnormslly high. AS
a result OF the financial depression, the
values fell the borrowers were unable to
pay their interest. and the securities fell
In value untii they would not sell for
enough to pay back more than a fraction
OF the principal.
Both lender and borrower have suffered
IN this process. but with this difference
that the lender never asked or expected
to receive more than a very low rate Of
s or per cent. interest for his money,
while the borrower expected by its use TO
put himself IN the way OF making a for
tune. Which is entitled TO the most SYM
pathy at tie disappointing outcome to
their oxpectatlons7 These questions ought
10 be nationally faced and nationally dis
cussed. There are no political issues dis
euised IN them. no matter what may have
teen said in the campaign by certain
class OF demagogues.