The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1896-09-03
NO HELP TO THOSE MoRroAoEp
Free Silver Hardship, Not . Relief, 20
Most of Them.

NJ HeIP 70 THOSE MORT0A0E0
Free silver Hardship, Not . Relief, 20
Most Of Them.
People owning their homes and hav-
ing mortgages upon them should not
be misled into thinking that free
silver victory in November would be of
assistance to them in meeting their
mortgages. A little examination will
show that on the average it will bring
hardship instead of relief. This would
be true, leaving out of consideration
all circumstances affecting wages and
incomes and confining the argument
simply to bare discussion of the
mortgage itself.
The great majority of mortgages,
especially the smaller ones on dwelling
houses, are written for three or five
years, and of this class the greater
number for the lesser period, while
many run for a year or two. During
the last few years a great many of
these mortgages have contained a
gold clause. 1t is obvious that no one
having such q mortgage on his house
would be helped in the slightest by
free silver. 1t is equally plain that, on
the contrary, were gold at premium,
1t would be harder than ever to make a
payment.
1t might also be remembered that
there are always, especially during
hard times, large number of mort
gaes, especially on small houses, that
are overdue, and are being carried
along by the mortgagee.
Bearing these facts in mind it seems
safe to assume that the average life of
mortgages on this class of property in
this city and its suburbs does not ex-
ceed one year.
For free silver to be of advantage to
the mortgageor money must be more
plentiful and more easily obtained
within that time than 1t is to-day. Is
there any reason to believe it would
be?
Even without a special session of
congress, called as soon as possible to
pass free silver law, such a law could
not reasonably be looked for within
that period, much less an imitation of
the currency, so as to give relief to
debtors. In the meantime what would
be the situation?
The crisis in financial affairs would
follow Immediately upon the success
OF free silver at the polls. Following the
Withdrawal of gold there would be a
sharp contraction of the money in cir
culation, and, instead of more money
with which to meet indebtedness,
there would be less. Owing to the un-
settled condition of affairs lenders
would be more unwilling than ever to
loan, and, as an inevitable result, paw
lnents would have to be defaulted.
There is still another point. In the
very great majority of cases mort
gagees do not willingly foreclose.
They want their money and interest
rather than the property. This is es-
pecially true of the savings and coop
erative banks. AS a result they often
carry mortgages that are due until
such atime as the owner rcanmeetthem.
But if they saw that they would receive
at some future time an amount less
than its value in gold, and only such a
payment could be of benefit to the
borrower, they would demand settle
ment at once, and, If that was not
forthcoming, they would foreclose.
And foreclosure in a panic means the
wiping out of equities.
In the above statement no allowance
is made for loss of earning power on
the part of the home owner. It is as
sumed, for the sake of argument, that
he will have as much money as he has
now. Even on such a showing free sill
yer to the great majority would not be
help but an injury.-Boston Herald.