The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-03-04


the peoples savings in enterprises in
which the promoters themselves have
only limited confidence ard which are
exploited in a happy -go-lucky spirit.
Such schemes are lacking in both bust
ness sense and common honesty. But
more reprehenSible than such ventures
are those which are willfully advanced
with a view to the pocketing, by the
principals, of the contributions of their
victims without any expectation OF
future distribution of either interest
on the sums invested or return of the
sums themselves. Yet this is exactly
the policy now being pursued in con-
nection with the startling development
of trusts, with the loose laws of New
Jersey as the source of procreation.
The Western sections of this country
have suffered in the past to just the
extent to which the people have Volun-
tarily, but innocently, in many cases,
lent themselves to practices when
could not find approval in the minds
OF any one who entertained proper
regard for true business ethics. Periods
of apparent industrial prosperity al
ways find~ the advance agent of dis
honesty active in the more remote sec
tionS. His business is to stir UP the
people; to stimulate their confidence
in neighborhood resources, whether
such resources have an existence or
not; to infiame the imagination; to pro-
mote dreams of possible wealth; to
tickle the vanity Of communities; to
encourage the game of hide-and-seek
between riches and poverty, and by all
other methods that may suggest them
selves to him to attract to himself or
those he represents anything in the
way of increment that may be possible
Of acquisition.
The West has, in the past suffered
notably in it's contribution to what
may justly be styled the farm mort
gage craze or mania. The opening up
of the country by the projection of
new railway lines through sections
which had previously been regarded as
scattered areas of desert and wilder
ness afforded a splendid opportunity
to the speculator and, when the word
Spectator is employed reference
is made to him who looks only to the
main chance associated with the quick
est possible return or profit as against
the more thoughtful and conscientious
man who invests his money with a
view to the permanent Improvement Of
the property involved, and who looks
only to the revenue to be derived
through it's proper and natural devel-
opment.
There Is no more reason why men
dishonest estate
transactions than in any other lines of
business. The value or farming lands
can be pretty accurately estimated if
product of the soil alone is the point
of interest. When the more intelligent
farmer advances to the business of live
stock production. another issue is in
troduced but this can be estimated
with an equal degree of honest intent.
The main point to be constantly borne
in mind by the investor and the Dor
rover alike is capacity for fruition. The
man who has money to lend should en-
ploy only those agents who will pre-
sent to him the real earning value Of
a property The man who borrows
should be prepared to meet that agent
with a truthful statement as to the
possibilities Of his property. Where
honesty of purpose is the ruling in
spiration. no fraud is likely to occur.
In commenting upon the late farm
mortgage mania the United States In
weston says:
The building of railroads started a great
movement of emigration westward. Persons
of every description, many Of them with no
previous knowledge OF agriculture, rushed
into the new localities, with little or no study
of the possibilities Of the situation. Whole
sections were opened up to settlement which
have since been practically abandoned, owing
to the lack Of irrigation other causes.
This movement gave birth to the Western
agriculture painted in such bright colors
that every farmer saw a fortune staring him
in the face; and in order that there might not
be any delay in attaining this, he put mort
gage on his property to supply himself with
necessary working capital. The high rates
which he was willing to pay excited the Gu
pidity of Eastern investors. and farm mort
cages found as ready market any one
could desire
All the above is true, as every West
ern man knows. But this resulted in a
positive harm to the farmer of the
West. Conservatism should have pre-
vailed in all these matters. Any capa-
BILE farmer knows just how much in
terest he can afford to pay. Every in
telligent and honest investor ought to
know just how much in the way of tax
and interest a property will stand. If
a man invests his money in a farm
mortgage in the confidence that the
percentage of interest, demanded or
legal. is excessive. and that the
chances are in favor of foreclosure and
the final conveyance of the property to
himself. he is not doing right by his
neighbor in closing the transaction
Perhaps this view may seem prudish,
but it is just and honorable neverthe-
less.
The consequences of the past system
of farm mortgages in the West have
been disastrous to both the investors
and the borrowers. which fact affords
the most reliable evidence that the
business has not been wisely conducted.
The prevailing low rates of money
ought to stimulate broad-minded, pub
lic-Spifited men to a movement having
for it's object the creation of more
secure. and. we may add. more honest
standard for the promotion of the agri-
cultural interests of the West by means
of the distribution of capital in the
form of loans among these commu-
mites.
The Hard Fate of the Sparrow.
Z