The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-04
Shoe Department
West Aisle, In the Rear.
AMERICANS NOT HOMELESS.
4 Kansas Man Tells Some Truths
Concerning Farm

To the Editor of the indianapolis Journal:
On page 2S6 of the July Arena is an ar
ticle by John O.. Lesser, entitled, Are We
Becoming a Homeless Nation?" which de-
| serves critical attention before being ac-
| cepted as truth. He seems to take his text
from the fact that Nebraska has a law re-
curing the registration of mortgages and
the cancellation of the same. Such laws
are common in most States. But this au-
thor branches off in a calamity wall about
mortgaged homes and their foreclosure.
He says: "It is commonly known that
Western loans were made for not more
than 40 per cent. of the value of the prop
erty mortgag ed. Therefore every forfeit
ure means that the mortgage, by proceed
ing in equity, takes not only an equiva-
lent value to the money loaned, but that
he also confiscates the other go per cent.
of value, which transaction would be es-
timated by a broker as an investment of
$50 per cent. clear profit"
The gentleman evidently has no very ex-
tensive knowledge Of Western loans dur
ing the past ten years, or he would not
have made such a wild statement. Pur-
chasers of Western real estate mortgages
may at the time have believed from state
ments contained in loan applications ac-
companying the mortgage that the amount
of the mortgage was only 40
per cent. of the value of the
property mortgage, but all who were
in the West during the halcyon days of
the boom know better. Values were spec
~ulative, fictitious and imaginary, based
upon the construction of proposed rail-
roads, the development of agriculture and
the building of a metropolis or two in every
county. The injury done in older commu-
mites by inflated values and rash spec
ulation is yet apparent, but it's effects are
not SO startling as in the pioneer
country of the last decade. In
southwestern Kansas the settlement
was too sudden for a permanent develop
ment. 1t took thirty years for the pioneer
to go half way across the State on the
southern border, but in 1885 civilization,
at a single leap, placed the settlers shanty
not only along the Colorado line, but up to
the foothills of the Rockies. Concerning
the foreclosure of mortgages in all that
region the demagogue has been raising his
howl. Those. mortgages We're made by
loan gents anxious to enlarge their
commissions, and were executed by settlers
wanting the largest loan they could posi-
bly, get on their land. Conscience and good
judgment did not at all times control the
appraisements. 1t was easy to imagine that
a quarter section was (or would be- worth
81, 500. and thus secure a loan of $500 or
$500. The value was simply imaginary, be-
cause the land had nothing on or around
it to add value. Land in a new country is
nothing more than a foundation upon
which to build homes and farms by labor.
It is true that raw quarters may become
valuable by being surrounded by well-im-
proved farms or located near thriving cit
les. But il takes labor, and a proper dis
tribution of rain. sunshine, heat and cold.
to develop valuable agricultural lands. The
trouble with too many pioneers of the
past dozen years has been that they set
tied upon government land for the purpose
of speculation, while they were doing bus
mess in towns. The writer did that very
thing on two claims in southwest Kansas.
It is a fact that only a small per cent. of
the first settlers intended to become farm
ers. and the majority Were very careful not
TO make more improvements than were abb
SOlut6y necessary for making final proof
and satisfying the requirements of the gov
ernment. Many who obtained large loans
regarded their land as sold. and never paid
a dollar on the interest. When
foreclosure day arrived the mort
gagee learned to his sorrow that. in
stead of conlscatine an additional so
per cent. he was obtaining a value equal to
the money loaned and court costs. In many
instances shrewd settlers would propose to
make a deed for SO or SO. and tile mort
gage would put up his money. because it
was a quick Way to procure title and was