, 1897-10-05
FARM MORTGAGES.

The Hon. j.. Sterling Morton, ex-sec-
rotary OF agriculture and 4 democrat
OF the old school, was interviewed at his
home in Nebraska City the Other day
and the following extract will be Of in
terest to the readers OF The Republican: /
When he talks about western farm
mortgages Mr.. Morton loses his patience.
He was discussing the dangers OF too
much money.
when We have got just enough
money for legitimate business we are
best of" he said. Our recent hard times
resulted from a redundant currency
Some OF these statesmen talk Of scarcity
OF money as the cause Of the recent de-
preston. II was the reverse. We had
too much. Cheap credits brought on the
depression. When money is so plentiful
mat b banks are ready to loan
1t too readily, undue competition Is en-
c~ouraged, and hard times follow as u ma
tural consequence. Take the discredk
brought upon the west in the past three
or four years on account OF farm mort
cages! l want TO give you a pointer on
that. The west wa nnt e" Ter
was a great surplus of money in the
eastern states. The holders couldn't
loan X. So they established agents
through this western country to place 1t.
They gave the agents . per cent to make
the investments. They put a premium
on dishonesty. They offered a double
temptation to the agents and the Dor
rowers TO make any sort of a dishonest
loan. l drove across Antelope, one OF
our western Nebraska ~cunties, and saw
this thing in operation. AS | rode alon4
and looked at the sane hills l said
to h man who was driving for me:
This land will never lie taken up. 1t
will make a good cattle range
That land is all taken he replied,
and mortgaged.'
1T was true. The land had been home
steaded. The agen; FOR eastern capital
had sad to the homesteader:
"'You had better complete your entry
and get the land clear. | will make you
a loan on it
"'But l haven't got the 5000 to com
p!ete the entry the homesteader would
say.
"Ill advance the 5000 to you,' the
agent would urge. Then I'll lend you
$780,
The fasteners sent out their money,
received such securities and called them
farm mortgages when they we're as re-
mole from thai character as Pixies peak
istrom a ROOT garden. They damned us
for the result they had invited. All OF
Nebraska has suffered :or what was
done in western COUNTIES. The eastern
sufferers from these worthless loans
make no distinction between this coun>
ty OF Doe and that county Of Antelope.
The bad mortgages OF which the east
ern people talk are not on Kansas and
Nebraska farms. They are on just such
land as l saw in Antelope county. OF
ourse the man who received the loan
only waited to get the money in his
hands. Then he abandoned the place
and moved On. l saw in one field an up
turned pillow which the owner had left
when he moved on after getting his
money. There was a piece o: paper tack
ed on the beam, and the writing was \
message to the holder o; the mortgage.
1t read:
"'You can cake the damned old pillow,
too
',Aanalyze the so-called farm mort
cages in these western states and you
will find that 80 per cent OF them are OF
this kind. They are not farm mortgages.
There has never been a mortgage fore
closed in this county because OF inability
to pay for a farm. Sometimes the form
Of foreclosure may be followed to gee a
good title. Take these cunties along the
Missouri. The farmers are all in good
shape. Those who have stuck to the
farms have made money. l met one OF
our farmers in town the other day, and I
said to him:
Edward Clayton. l ! have known you
. good many years. Tell me how you