The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1914-03-19

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per annum in interest-taxes. Thu
question puts itself thus: (Which
will do the farmers, and also the state,
i.re most good for this s15.000.00 to
10 retained in the farmers pockets, or
o continue the present system 7"
Some one may ask: Don't the
farmers charge more for their pro-
ducts when they pay higher rates Of
interest like the merchants) and thus
shift the burden onto others :" I will
answer, No. Farmers do not con-
troll their selling prices at all. If they
did the could remedy the matter with
out the aid Of a law.
State Remedy.
In the absence of a better plan,
suggest the following remedy which
is at our command within the state
Provide by law that when real es-
tate loan (a) on say 40 acres or more
(b) does not exceed say 6 per cent
interest, (c) is the first mortgage loan
(d) does not exceed say so per cent OF
the value of the farm, (e) a reason.
able time, say 10 years, or longer, 81
amortization provisions SO that the
farmer may pay any part or all the
principle on any interest paying date
say after the fifth year, (g) provis-
ions as to taxes, insurance of build
ings, etc. Then let the state under
write the loan, thus making real estate
loans as safe for investors as bonds
of the state.
The history of all commercial trans
actions is, the safer the investment
and the better the collateral, the more
readily will the paper find buyer
and that at low rate Of interest.
The state could carry (pay) the in.
terest. for the individual, in case OF
unavoidable inability of the mortgag-
or and should foreclosure by the state
become necessary the owner or his
heirs should have preferred right in
redeeming, this to be at actual cost
of expense to the state.
While an available fund would be
necessary to carry out such provisions
still the state need not lose one cent
in the operation.
1t is so much easier to follow an
old rut than to make new one," or ia
"scoff at a new inventor than to 60
out and discover a new world"-like
Columbus-that the ego-statesman
will shout Socialism" to all things
new to his Uranium. For the benefit
of such Statesmen" l will say that
am opposed to all theories that have
for their object the destruction of in
dividualism in efforts or the pride OF
personal ownership.
Figures Talk. ~
But few people stop to figure what
the final cost of a loan amounts to.
From October, 1907, until the spring
of 1912, the interest rate on real es.
tate loans in this part IF the state
was from 9 to IL per cent. Take
loan of $4,000 at 10 per cent. When
you have discharged this debt you
will be out just $4,000. In other
words, you will have to pay $1.5O fol-
every. one dollar that you received
Behold the man who pays II per cent
for : years time. l know personally
OF such loans. The interest alone will
be $3.50, while the amount will bet
the interest don't eat them up-$3680
This is enough to make a Shylock
blush. -.
Just note the saving at 6 per cent
on the above: The amount of $4,000
at 6 percent for s., years is $26O0---
a saving of $4O0. The amount of ST.,
600 at 6 per cent for years is $243O-
saving Of $40.
Mr.. Farmer, are these items worth
saving? If so remember what the
poet said:
Wake up, do not sleep,
If il business you would keep.