The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-28
MORTGAGE STATISTICS
FACTS AND FIGURES EXPOSING THE
CLAIMS OF CALAMITY HoWLERs.
Farm. Mortgages and the Relation
They Be:.r to Similar obligations
Against Other Property.
TO the EdItor of the Indianapolis Journal:


morigaged Indebtedness in the United
States. There has been no subject discussed
about which less is really known. Those
who have talked most the subject are
politicians of the Demo- Ponulist persua-
sion. The trend OF their talk, the burden
of their song has been pity for the poor
farmers of the West, who were mortgaged
body and soul to the gold-bug shylocks of
the East. who were standing ready to
pounce upon these poor farmers" close
their mortgages, sell them out at sheriff's
sale and thereby possess themselves of all
the broad acres OF the valuable farms of
the West. making these once happy farm
crs practically their yaSsals-" hewers OF
wood and drawers of water for them. no
one will. for moment presume that farm
ers have been especially prosperous for the
past few years. But is their condition as
bad as it has been represented? Are they
mortgaged so heavily, and do Eastern
money-lenders hold all their mortgages
Are they being sold out at wholesale?
BY an act of Congress approved March l.
1889 the superintendent of the last census
was directed to make investigation of
the question of mortgage Indebtedness The
result of this investigation has been pub
lished in a separate volume of the census.
entitled "Rea-estate Mortgages. An in
vestigation of this volume would be an eye
opener to the modern Jeremiahs whose
tears have been so copiously shed over the
much-mortgaged Western farmer. On page
: 81 of this report it is said: The mortgage
debt the real estate of New York city
and ten neighboring counties in New York
and New Jersey. which, except politically.
are virtually parts of New York city is
2 p per cent. Of the mortgage debt of the
I-.@st1
one-ifth of all the mortgages on the real
estate of all this country, from the At
lantic to the Pacific is on the real estate
of New York city and few adjoining coun-
ties. Again, on the same pages this re-
port says; The populous wealthy and in
dustrial States of Illinois, Massachusetts
New York. Ohio and Pennsylvania are in
numbered with 52.e7 per cent. of the mort
gagged debt in force throughout the whole
country. That is to say, of every 500
of mortgaged debt of the whole United
States $52.9I of it is on the real estate of
the five states named only two of which,
Illinois and Ohio-are Western States
On page 290 it is shown that 102 counties
throughout the country were selected. three
OF which are in Indiana, and the original
mortgages traced to ascertain the residence
OF the holders of the mortgages. This
10 nelghbors of the men executing them or
TO Eastern shylocks." This report says
12o4 per cent. of the number of the mort
of the States respectively in which the 102
counties are situated. and the mortgages
are $3.50 per cent of the mortgages in
force That is, of every one hundred
mortgages in force seventy-two are held
I'm the States where given and twenty Eight
represented $6S.69 is due to persons living
IN, the States and $3l.31 to outside parties,
who may be the much-hated ''shylocks.'
FARMS VS.. LOTS.
On page 12S of the report quoted from ii
Is shown that of all the mortgages in force
Ian. |, 1890. 1920 per cent are on acres
(farms). ard 51.S0 per cent. are on lots, and
that of the amount 1910 per cent. is on
farms, and $3.50 per cent. is on lots" That
IS. of every 100 mortgages in force, in round
numbers. forty-eight are on farms and
fifty-two on lots in Incorporated towns and
cities, while of every %00 in amount $50 20
is ON farm lands and 5000 on lots.
Having shown hat one-fifth of all the
mortgages are on New York city and ten
adjoining counties, and that more than half
of all the real estate in the five
States already named, and that more than
half of all the mortgages in number and
nearly two-thirds in amount is OH lots, aot
land, 1t becomes of interest to inquire what
proportion of farms are mortgaged? The
abstract of the eleventh census. page 223
says: The whole number OF families oc-
cupying farms was 4.767,179'' The number
of families owning incumbered farms is
SS6, 81" Substracting those owning incum-
bered farms from the total owning farms
shows 3,SS0,222, or 81 per cent. of all the
farms are unincumbered, leaving but IS per
cent. that have mortgages on them. On the
same page of this abstract it is said: THE
total value of all farms in 1890 was $13, 279.-
30, Gag. and of this amount So, 054, 1928 165 was
the value of owned and incumbered farms,
SIC. 224, 329, 4S4 the combined value of hired
and This farms bd fee ne of
value of all the farms were incumbered
and II per cent. in value were free of in
cumbrance.
The next question of interest is why are
farms mortgaged? Does the. mortgaged
debt Of the American farmer represent
for purchase price of lands and to improve
the same, or because of the inability of
the farm and does 1T. therefore, show "a
bad state of affairs among farmers? On
te is the on
tempt to ascertain why mortgage debt was
incurred was extremely successful and sat
isfactory one. and Unexpectedly In or
der that the inquiry might be compre-
hended by debtors it was made simply with
reference to the Immediate cause of the
Indebtedness. and the equivalent of this
was regarded as the debtors object or pur-
pose in making the, mortgage. What was
actually ascertained then was what the
debtor, in the first instance, did with the
borrowed wealth if he borrowed MONEY.
WHY MORTGAGES WE'RE MADE.
'.As result OF inquiries made in 1O2 Sc
lecleu COUNTLESS, uiStTlDuIeU throughout the
United States, the conclusion is that S013
per cent of the mortgages in force were
made to secure the purchase price of real
estate and real estate improvements "
and that the original amounts of these
mortgages is S2.56 per cent. of all mort
Cages in force. IL to these objects are
added the objects of business and the pur-
chase of various articles of personal prop
erty of the more durable kind. such as
domestic animals, wagons, farm machin-
ery when not combined with other OBJ
jects the mortgages are S9S2 per cent of
the entire number in force and their orig
inal amount is 9437 per cent. of the total
original amount of all the mortgages in
force The mortgages distinctly repre-
Senting a loss of wealth, or wealth soon to
be consumed is $40 per cent of the total
number of mortgages in force, While their
original amount is 1.73 per cent. of the to-
tai original amount
Then, to recapitulate: OF all the mort.
cages in force Jan. l. 1890. 52.97 out of every
loo is on the real estate of five of the most
wealthy and popuIous States of the Union
only two of which are Western States: that
72 out of every 100 mortgages Were given TO
residents of the States where given; that
of all the mortgages in force but As out OF
every 100 are on farms, ssnd that the
amount thus covered is bur S36 70 out of
every 800; that the mortgages on farms
represent purchase money, improvements
and stock. but 1.73 pei. cent, on S1.73 out OF
every 500. represents loss of wealth or
forced indebtedness. DO not these figures
- -. ~. Il