The Washington herald., 1910-02-13
HIGH FOOD PRICE ANALYSIS
Former Senator Thompson Believes Back to the Farm
the Solution to Problem

ltLlcA 1IoHl HlGaliuii, dsltdlluIt anu Stc6-
nation was Well worth the money. I held
no more Offices in Illinois.
My health again becoming bad. I sold
my store. and with cash and credits
amounting to about Sl4Oo0, I moved TO
North Dakota taking up a quarter sec
ton of land, in the hope that living in
the air would cure my ailing throat and
| lungs. After I had built a 0ne-room
shack of rough boards. and had plowed
the land, / returned to Illinois for the
winter In the spring took my family
a number of horses. and some machinery
to Dakota. bought and prompted more
land. and settled down to live and die a
farmer.
Deals In Real Estate.
IN three years I was elected probate
judge of Towner County. and moved TO
Cando. seven miles distant The country
was new, the settlers were young, and
there We're few orphans and widows, and
no wills TO tile or estates to settle. The
fees of the probate judge, accordingly,
were hardly worth mentioning, So 1
began to loan money and deal in real
estate. The people were poor, the land
/ was being broken to the pillow, and the
| prices of farm products We're so low that
there was very little profit In agricul-
ture. No money came in from the out
side until the year 1885,. Since then We
have not had any dihculty in getting all
the capital needed to develop the coun-
try"
How are Western farm mortgages
sold and are they a safe form Of in
vestment?'' l asked.
Usually. farm mortgages are sold in
large financial centers. frequently to
trust companies which dispose of them
to individual customers. Senator Thomp-
son answered. THE loaning business all
through the West is organized and sys-
tented after the general plan employed
by banks. When l moved 10 North Da-
kota, farmers borrowed money 20 meet
interest and even to live on. In those
days we had to depend on the capital
that was brought in by the settlers them
selves Merchants would give long credits
for such goods as they sold and occasion
ally some one would have little money
10 lend. Western farmers are heavier
borrowers than ever before. bat they are
going in debt for more land, just as
prosperous manufacturer, in extending
his business. will build another mill and
fill Il with the latest machinery.
Money on Mortgages.
when q farmer wants money. he
goes 10 an agent whom he knows and
Nils out and signs an application. He
must also answer certain important
questions. If the agent knows the land
that Is to be mortgaged and the appH-
cant, as well. the loan is speedily closed
If he doesn't know the land, a man is
sent to look al it, to get its character
and surroundings. In no instance do we
loan more than 30 per cent of its value,
exclusive OF Improvements. The loan
being made, the mortgage is given and
recorded. Farm mortgages are printed
in blank and contain interest coupons,
Ike the bonds of railroads and large in
dustrial plants. AS the interest falls due
the coupons are sent 10 the loanlng
agent; he collects the money and RENTS
it TO the owner of the mortgage. Now
adays, we can borrow money at > -
per cent. Mortgages are payable IN five
years
Most Of the mortgages Of large and
responsible agencies are sold to trust
companies in St Louis. Chicago. New
York, and Boston; the trust companies
often sending experts into the West to
report upon the land that is to be pledged.
The mortgages, I'm turn, as / have said,
ere bought by persons who have money
TO invest. Now, the security of a farm
mortgage depends, of course, on the
value Of the land. There are plenty Of
farms that are practically worthless and
many regions are not suited to agri-
culture. Elsewhere, the soil may be fertile.
but the rainfall may be uncertain Land
is the beginning OF all value and the
foundation Of all prosperity trite
statement that many persons fail TO re-
member. However, farm mortgages, and
it is just as true Of railroad bonds.
should not be bought indiscriminately
and without knowledge and intelligence.
Wisely bought, there can be no better
security
Returns Are Satisfactory.
You own a great deal of land your
self I said. Does it pay?"
In North Dakota, at least, If the land
is good and ones renters are energetic
men, the returns Of agriculture ought 10
be considerably more than 10 aer cent
annually. Some Of my renters nave been
with me for sixteen years. Several of
them have farms Of their own, but they
rent to others and remain with me.
mean landlord seldom makes any money.
GIFT TO THE BRONX