Evening star., 1933-02-07
Relief of Mortgaged Farms
Described as Good Business

Response Of insurance companies and
banks to farm demands that fore
closures on mortgages be modified has
met with much approval. 1t Is widely
recognized that foreclosures for failure
to make payments to creditors accom-
plish little. Removal of the farmer
from his land, it is pointed out, may
De detrimental to both creditor and
debtor. Ability to pay is set up as the
standard for arrangements that are to
be made.
What the farmer most wants in this
emergency is time" declares the Omaha
World Herald. THE insurance COM
panies seem disposed to grant this, even
without special pleading, where it can
be done without prejudicing their in
terests against the claims of junior
creditors. IN the long run this policy
Is seen to be best for the creditor him
self as well as for the debtor. The
insurance companies do not want land
They cannot use land. They want only
safe investment for the money of their
policyholders, of which they are the
custodians. In general their attitude
seems to be that they are better pro-
tected by carrying the farmer than by
foreclosing him where the situation
isn't complicated by other borrowings"
=
eff the problem is to be solved by
private negotiation" advises the Chi
cago Daily News, 1.-The debtor must CO.
operate fully and fairly with his lenient
creditor. For example, no solvent
farmer whose income is sufficient TO
meet his Just obligations should be
permitted to take advantage of a gen.
eral moratorium on farm mortgage
foreclosures" The Daily News also
notes that "lenient treatment of over
burdened debtors Is gaining momen-
tum," and continues: fortunately for
the insurance companies, they have
reduced their holdings of farm mort
cages considerably in the last eight
years. In 1923, 1877 per cent of the
investments of the SO largest legal
security. At the end of 1882 the ratio
had dropped to 8.8 per cent. The per-
centage Of farm mortgages in default
has not been made known, but it is un-
doubtedly low. Real estate of all types
held by the old-line insurance COM
panies rose only $242,000,000 in the last
three years, chiefly through foreclosures,
while the total of all mortgage invest
ments averaged little below $7,0O0,-
100000 for the period"
IAN efficient farmer, on and work.
ing his farm. contributes more to the
national well-being than If he is forced
to join the army of unemployed" saws
the Wall Street Journal, while the Mil
waukee Sentinel warns that sit is vital
that the interests of all be considered
rather than to rush into some blanket |
scheme which will help a few give to
others a temporary palliative that will |
result in heavier loss in the long run |
and open the door to widespread |
abuses" The Philadelphia Evening Bull |
letin agrees that "it is not matter of |
sweeping cancellation, although one of |
the requirements of the restoration of |
business is that some of the existing |
debts shall be written off," The Okla |
homa City Times maintains that |
neither State nor Nation can afford to |
see majority of farmers driven from |
their homes" and that "the immediate !
need is some assurance for the farmers
that they be enabled to hold their
lands''
Three thousand farmers of Mime
sofa are quoted by the Charlotte OBJ
server as having stated through their
leader, I'VE don't want mob rule, but
he farmers must have help" The OBJ
server comments: Here are the people
u AsSsrica to whom our Government
our civilization and our destiny must
always look for salvation in an unhappy
,risis-the best type of American farm
,rs. They are slow to anger and mild
n speech. They move tardily, they
;htnk carefully they act deliberately