The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1909-02-02
FARM.L0ANS
IND|CA7'
PROSPERITY Y
Farmers Rate Too
Lou to Suit
Investors

Investors
CHICAGO. Feb. 2.-Farm mortgages
ore again on the Increase, TACT that
ANONYMOUSLY. nowadays Is certain
sign OF revlNng prosperity. The day
when tarm mortgages arplenty signi'
fed depression Is past; liberal Dor
rowing on farms means the contrary
to-day.
notwithstanding the increase OF
farm mortgage loans they are not sell
Ing to western Investors with the
snap and 20 that so pleases the deal
ers in them. Herein Hes q big fact
concerning the condition Of the Amer
lean farmer In the year A. D. 1909. his
ability 10 borrow mt rate so low tlat
investors In the West are not salts
fed and are more and more becoming
buyers Of securities. bonds principal
", but also Stocks because they get
q higher rate for their money. The
fact that prime mortgages on farms
in Illinois and Iowa no longer allures
Jones with $4,000 surplus. which be
wants to invest Is that Jones has
famlllarzed himself with securities
which were empty names 10 him few
years ago. Jones wants TO- "play safe"
but be cannot submit TO a rate Of ~
per cent. to 4H per cent. for a farm
'mortgnge. when he can buy. bonds
that are equally secure and get S TO
c per cent. The public service corpo'
rations, the manufacturer and the rail.
road company can. wlllEand do pay
more for money tlan the American
farmer. Moreover, Iones can turn bis
securities into money quickly when
he wants his cash aga!n which never
hasrbeen so tue Of MORTGAGES.
1le anomaly about theFincrease Of
farm loans when general business Is
no longer In dlstress Is explained by
one mortgage house thus: SIN the
rural districts this last financial diff.
Guilty was felt less than by any other
class Of our people. Farmers have
had four years Of excellent crops and
are well fixed. The farther west sou
so, the less they understood what the
panic was a year ago. Scarcity OF
farm mortgages indicate failure with
farmers. When farming interests are
successful. farm mortgages incrnse.
There Is no difference In the position
OF the farmer when he Is successful
and that of the merchant. They both
rcacn out. In doing so they borrow
money. There are far more farm
mortgages now than the demand for
them meets.
The facts are that companies like
the Commonwealtn.Edison. s3O.000.-
900 public service corporation to which
Chicago In 1897 handed to 80 year
franchise, can afford to pay s per cent.
on Its recent big Issue OF refnndlng
bonds, for It's gross earnings were
s9.5oo.907S2 in 1905. The Chicago
Telephone Company recently bid 5
per cent. for money by a bond Issue,
MS a competitor e Mr.. Farmer. who
can get money at to 1 Y per cent.
because the company mas record OF
10 per cent. TO Its Stockholders and 4
recent stock dividend OF 20 per cent.
besides. The bonds went 10 a prem.
Ium as soon rs listed on the Chicago
Stock Exchange but the rate bid by
the company was 5 per cent. and only
exceptional conditions and brisk de-
mand caused the premium.
In fact, the investors OF the West
as we'll MS the East have heen passing
farm mortgages by AMI absorbing"
Immense blocks OF railroad, public
service and industrial bonds, until they
havo "nearly licked tho PLATTER Clean"
The bond houses are nearly sold out
in fact, one mouse recently adver.
tlsed for Issues that they could buy
for resale to keep their statesmen
busy. The result Is now that the
other class OF securities. stocks. which
no mortgage lien, but In
stead, equities. are now increasing de.
mand::'
Already the results are seen: The
West has added Thousands Of stock.
bnlJars "a the 1iets of tho limited