River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1920-11-04
TWO KINDS OF MORTGAGES

Now that election is over we will ali
settle down for four years more and
each person will have to make his own
living and provide for his family ex-
cept the people who have been elected
to office. You will now be advised
that it is only by rigid economy that
you can prosper, you must forego
chocolates at $500 pound and Ham
at 60 cents, when the farmer will get
only few cents pound for his pork.
The farmer will be hit the hardest.
because he always has to support the
other half of the worlds population.
The farmer is the only producer and
great many farmers have mortgages
on their farms. That is why a talk
on mortgages is in order. Mortgages
may be generally divided into two
classes-straight mortgages and am
ortized mortgages. A straight mort
gage is given for definite amount,
to run for a definite time, at the end
of which, the entire principal of the
debt falls due and is made payable.
The amortized mortgage is one that
is made payable in periodical install
ments of sum to cover the accrued
interest, and an amortization payment
to apply on the principal of the debt.
The statement has been made that
the oldest example of q mortgage
which was ever discovered, was en-
graved in cuneiform characters on a
clay tablet, dug in ancient Chaldea.
That clay tablet pledged certain
piece of property as security for debt,
the debt was for a definite sum, pay
able in full, at definite time, and
this is the form in which vast ma
ority of the mortgages are now made.
This old ancient tablet, contained all
the elements of what we know today
as a straight mortgage, and submit
it to you if it is not matter of shame
and disgrace and reproach to the
brains of modern business that in all
these d &c des of centuries the
straight mortgage remains IN the
same old, archaic form that was en-
graved on clay.
A mortgage of this character is
wholly untitled to the needs of the
ordinary home builder and home pur-
chaser. 1t is usually made for linn
tied time and man with small IN
come does not dare to obligate him
self to pay a certain sum of money
within a time when he knows that he
cannot meet the debt at maturity anc
must rely on chance to renew when i
falls due.
/ The reasonable, proper kind of {
mortgage for man in those cir
cumstances is the amortized mortgag
one in which thee periodical payment
are fitted to the mans income, wher
there are no renewal expenses to b
met, but the mortgage is carrie
along out of his daily, weekly o
monthly wages, paid off from time t
time.
The amortized mortgage is a mod
ern development, and it is throug
the operation of this type of loan tina
home building needs as we'll as tn
farm owning needs of the country cal
be most easily financed. The presen
i tendancy to become a renter and re
main renter is due to the presen
| old time straight mortgage system
| The volume of the mortgage loal
business for home building and home
buying purposes is so tremendous IL
this country, so widespread and uni
| versal is the need, that this countr!
should have big, strong, well organ
lied system of financial institutions
nation wide in its extent, devoting al
| its resources and combining its activi
| ties to the sole business of financing
| the farm owning and home building
| needs of the nation.
advertisement.
w. HI. Putnam,
River Falls, Wis
1911