The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-15
OLD SIGN is GONE
Western Farm Mortgages for
Sale'' Has Disappeared.
Little Business of This Kind in
New York Now.
DEMAND HAS STACKED
DEMAND HAS STACKED
Money Is Now ''Flowfng" the
Other Way.
More PaIatial Hotels Being
Erected in the Metropolis.

New York, Jan. 15-For years
prior to 1897, in almost any one of the
large office buildings of New York
and many of those of Boston and
Philadelphia, the most familiar and
frequent sign over an office door an
nounced that western farm mortgages
were dealt in. Today that would be
an exceptional sign to see, since the
business and dealing in mortgages
placed on western farm lands has
either entirely ceased or else has taken
a different form.
Coincident with the construction of
the Michigan Central railroad by the
late John M. Forbes of Boston and his
promotion, a little later, of what is
today the main line of the Chicago,
Burlington & Quincy Railroad com
pany, large amounts of Boston money
were lent upon the security of bond
and mortgage to the pioneers who
were tempted from the east by the OPP
portunitieS which were opening in
the great west. Many millions of
Boston money were thus invested. A
little later, New York. and to some
extent Philadelphia, began to offer opz
portulities for the investment Of
money in western farm lands.
It was to a great extent with money
borrowed from the different regions
east Of the Alleghenies that the
farms of the west were financed. At
one time the prevailing rate-or, at
least, the average rate of interest-was
10 per cent, although a good deal of
money was loaned at a higher rate
than that.
The late Frederick D. Tappan, who
was for fifty years a very prominent
banker of New York and for many
years chairman of the New York
Clearing House association, began to
observe in the last two years of the
past century that the demand for
money from the farmers of the far
west was Stacking and, a little later,
that many of the farmers were begin
ming to pay off their mortgages. Mr..
Tappan then ventured to predict that
with improved transportation, with
more economical cultivation of the
soil. the farmers of the west as
whole would, within ten years. have
paid off their mortgages and have be-
gun to accumulate a surplus This I'M
doubtedly explains why it is that very
rarely can a sign be found in any Of
fee building in this city announcing
in.
Money Now Flows East.
There are other Indirect proofs of
the liquidation Of the vast Indebtedness
ern farm lands were to be opened to
cultivation, and of the fact that in
place of debt the farmers, as a class,
are accommodating large sums of money.
bringing money from the west to New
York city of themselves show the
chan in the conditions of American
farmers from debtors to creditors.
The Mortgage as an Investment.
Were the opportunity at the pres
emit time for investment of money upon
the security OF bond and mortgage
upon the western farms as great as
these opportunities we're prior to
1897 there is no doubt that a very
large amount Of idle capital would be
invested in securities of this kind. We
have had in New York since the first
of tho year somewhat impressive proof
of the disposition of those who have
capital TO invest it upon the security