Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1896-09-10
NO HELP TO THE MORTGAGED
Free Silver q Hardshis and Not a Relief
to Most of Them
From The Boston Herald.

From The Boston Herald.
People owning their homes and hav-
ing mortgages upon them should not
be misled into thinking that a free
silver victory in November would be of
assistance to them in meeting their
mortgages. A little examination will
show that on the average 1t would
bring hardship instead of relief. This
would be true, leaving out of considers
ton all circumstances affecting wages
and income, and combining the argu-
ments simply to a bare discussion Of
the mortgage itself.
This great majority of mortgages, es-
pecially 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
I the last few years a great many OF
these mortgages have contained q gold
clause. 1t is obvious that no one hav-
ing such a mortgage on his house
would be helped in the slightest by free
silver. 1t is equally plain that on the
contrary, were gold at a premium, 1t
1 WOAlu uC q WI hhA v r" oil
payment.
It might also be remembered that
there are always, especially during
hard times, a large number OF mOrtg-
ages, especially, on small houses, that
are over due, and are being carried or
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 suberbs does not ex-
coed n year.
For free silver TO be of ad Vantage to
the mOrtgagOr money must be more
plentiful and easily obtained
within that time than it is today. Is
there any reason to believe it would be?
Even without a special session Of
congress called as 500 as possible to
pass a free-silver law, such a law would
not be reasonably for within that period
much less an imitation OF the currency,
SO al to give relief to debtors. In the
mean time, what would be the situa-
ton?
The crisis OF financial affairs would
follow Immediately upon the success OF
free-silver at the polls. Following tho
withdrawal Of gold, there would be q
sharp contraction Of the money in
ClrCulAtlOu, anu lusteAu Vi mOro money
with which to meet Indebtedness, there
would be less. Owing to the unsettled
t condition of affairs, lenders would be
t more unwilling than eve to loan, and
t as an inevitable result, payments would
have to be defaulted.
There is still another point. In tie
Z: very great majority of cases, mortgages
8 do not willingly foreclose. They want
their money and interest, rather than
t the property. This is especially true
3 OF the saving and cooperative banks
AS q result they often carry mortgages
8 that are due until such a time q the
t owner can meet them. But if they saw
7 that they would receive at some future
! time an amount less than its value in
= gold, and only such q payment could be
t of benefit to the borrower they would
! demand a settlement at ono and, Il
l that was not forthcoming, they would
foreclose In a panic, means the wiping
out of equities.
9 In the above statement no allowance
is made for loss Of earning power OF
the part of the home owner. 1t is as
sumed, for the sake of the argument
that he will have as much money as he
has now. Even on such T. showing
q free silver to the great majority would
q not be a help but an injury.