Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-03-17
CHATTEL OR CROP MORTGAGE
Editor AskOv Americana:

| am aware that several farmers
have given Federal Land Bank or
Minnesota Rural Credit crop mort
gage for delinquent installments and
interest. | question the prOpriety of
such acts for several reasons. If
farmer owes either his local bank or
storekeepers unsecured money for fac-
orS rendered i'm good faith, his first
concern should be to repay these con-
for his family.
The mortgage (ender) has gam
bled with the mortgagOr (borrower)
that such property was worth GER
tain value and able to sustain mort
gagOr and family and besides produce
the payment of a certain rental of the
money after taxes and all other cur
rent and unavoidable expenses are
paid for.
Under ordinary circumstances this
would come out fine, but under de-
preSsiOnS like the present it is i'm
possible and no fault of neither party.
If the mortgage had gambled in
wheat or bonds or any other security
he would have lost heavily, and would
have pOcketed the loss without ques-
ton. The borrower who, as in most
cases in this county, has spent many
of his best years in clearing, break
ing and building his home, has also
lost heavily. Is there any reason why
they should not divide the loss and
start on a new basis (revaluatiOn)?
The lender has no moral nor judicial
right to call for added security from
the borrower under threat of depriv-
ing the borrower of all his, as he
legally has accepted the real estate as
sufficient security.
A recent incident came to my
knowledge a few days ago. This
farmer obtained loan from the State
Rural Credit Bureau some years ago
for about $4,000. Unable to meet his
Bureau requested him to sign crop
mortgage, payable next October, first
intimating that it was only his ruta-
bagas and potatoes they wanted.
When he told me about it | said,
Don't do that, it is not fair. How
can you grow crop on that basis
and support your family?" Well, he
thought that by so doing he could
stave off the catastrophe and perhaps
times would be improving meanwhile
and he would be able to save his home
and the many years of hard labor. l
OF hnir
Mortgage Contract" The instrument
was a chattel mortgage with five notes
attached, dated February 18th, in
terest at TO figured from S-5-31 to
S-5-32, then a blank space to be filled
out, | suppose by the Rural Credit
Bureau, and then it continued
together with all increase and the in
crease from the increase .. and the
income therefrom, including all wool
sheared from any sheep .. better
ments and repairs and includ-
ing all property -. which may here
matter be acquired, etc.
Then further on it continues >. :.
also my undivided whole interest in
and to any and all crops of every
kind, including wild and tame hay
and grass, cultivated or harvested,
etc, on the following described prop
erty.
Well" he said, that is not what
the representative of the Rural Credit
Bureau stated. | had not noticed this
in the contract. Certainly, 1 will not
sign that, | could not live up to that
and keep my family alive through the
summer"
Recently a special meeting was held
by members Of the AskOv Federal
Farm Loan Association. A resolution
was adopted asking for a two years
moratorium, a copy of which was
mailed to every loan association in
the four states from Dakota to Mich
igan. l had a letter from Chas. E.
Parker, secretary-treasurer of the