## The Alliance-independent. (Lincoln, Nebraska) 1892-1894, October 06, 1892, Image 1

r VOL. IV. LINCOLN, NEB., THURSDAY, OCTOBER C, 1892. NO. 17. H r nrcnni n burdens The Beal Situation and Prospect of Ne braska's Mortgage-Bidden Peo ple Orops and Interest Compared. Causes and Effects What Becomes of Nebraska's Surplus Remedies Proposed "Stand Up for Nebraska." In the foregoing discussion nothing has b3en treated save the mortgage statistics gathered under our state law for the year ending June 1st, 1892. The former table shows simply the mortgages filed, the mortgages releas ed and the increase during that year, The chief object of that discussion was to show the tendency of things, and to prove that the producers of the s'ate are becoming more and more deeply ani hopelessly involved in debt, and not rapidly getting out of debt as some "prosperity shriekers" are shouting. How well that has been proven the writer leaves to the judgment of all fair-minded men. The object of this article is to show the situation at the clo38 of the present year as nearly as may be possible. The fifty first congress passed a law requiring the census bureau to take a CENSUS OF MORTGAGES throughout the nation. This was done, " and some of the results have been given e to the public. So far those results have most signally vindicated the claims of ' the so-called "calamity howlers." They have also done much to startle the in different, aad set people to thinking and reading. Last May the national bureau pub lished its census of Nebraska mortga ges. No attention was paid to chattel mortgages, only mortgages on farms and city lots were considered. The following is a summary of the GENERAL RESULTS. if- shown by the national census of Ne braska mortgages: The whole number of mortgages made during the ten years ending January 1st ' 1890, was 337,872; and the whole amount nf Aoht. soured bv these was $274,368.- 358. Of this debt nearly one-half $132, 902 322 remained in force Jan. 1st 1880. Of this amount $90,506,908 was on farms,, and $42,395,354 was on town and ci'y lots, six-fcevenths of which was in Douglas and Lancister count'es. The number of acres mortgaged was over fourteen million, or more than 58 per cent of the whole number of taxed acres. The average size of farm mortgages was $844 and of city mortgages $880. The debt per capita for the state was $126 or $630 per family. The average rate of interest was a little over 8 percent The assessed valuation of all taxable property in the state was about $180,- 000,000. The total mortgage debt was 74 per cent of the assessed valuation of the state, These startling figures collected and published to the world by a republican administration were received almost in silence by the old party press of the state. They wer8 barely referred to and then dropped. Perhaps their effect on the editors was paralyzing. Taking the table published by the national census bureau and table No. 1 male up from the stat9 records as a basis, I have worked out and tabu'ated the figures found in table No. 2 pub lished herewith. The following expla nation will enable the reader to under stand WHAT TABLE NO. 2 CONTAINS. The first column is taken from the national census bulletin, and shows the total real estate mortgages (both farm and city) in force Jan. 1st, 1890. The second column shows the increase of mortgage debt from Jan. 1st, 1890 to the c!oso of this year, Dec. 31, 1892, including chatttl mortgages. The numbers in this" column were worked out by the following method: The increase in farm and city mortga ges as shown in table No. 1 was taken as a basis. The increase for one vear was multiplied by three to get the probable increase for three years. Where table No. 2 onhi shows the in crease for 9, 10, or 11 months the prob able increase for three years was found by multiplying the increase per month by 36. D?creases were treated in the same manner. This method presup poses that the increase during the three years has been at substantially the same rate, which is certainly a reason able supposition. To the increase in real estate mortgages thus found wa3 added the increase in chattels for one year as shown in table No. 1. This in crease was not multiplied by 3 as in the case of real estate mortgages. That would hardly be fair. Chattel mortga ges rue for so short a time, that the In crease for one year may fairly be taken to represent th9 total amount in force. To illustrate the manner of working out theso res'llts take the case of Butler county for instance: The increase in farm mortgages as shown in table No. 1 is $70,914; the increas3 in city mortga ges is $14,018; total increase for one year $84,932. This multiplied by three gives $254,796 estimated increase of real estate mortgages for the three years of '90 '91 and '92. Adding now the increase in chattels as shown in table No. 1 we have $361,469 as the estimated increase of mortgage debt for three years. The third column shows the total debt in force at the close of this year The numbers were found by adding together the numbers found in the first two columns. The fourth column shows the amount of interest accruing on these mortgage debts during the present year. The numbers were worked out as follows: The interest on the total real estate mortgage debts was calculated at eight which is a little below the average rate. To this was added the interest on the chattel mortgages in forci at 20 per- cent. This is equivalent to one and a half per cent a month compounded quarterly. This rate ii probably below the averare, " for in many (probably one-half) th9 counties in the state, the customary rate on chattel loans is three per cent a month. The fifth column contains the debt per capita. This was made np by allowing an increase of population 6ince January 1, 1S90, of about 12 per cent, and dividing tho whole debt of each county by the whole number of people. The sixth column shows the amount of interest per capita for the year. The average debt and interest per family may be found by multiplying the per capita by 5. In making these estimates the official figures have been taken as a basis in every case except that of Buffalo county. In that case a deduction of $500,000 was made from the amount re turned as ''released'' on account of the repeated release of blanket mortgages is explained elsewhere. - THE PRESENT SITUATION as shown by table No. 2 is as follows: Total debt Jan. 1, 1890. not including chattel mortgages, $132,902,322. Total increase from Jan. 1, 1890, to Dec. 31, 1S92, including chattel mort gages $36,213,230 Grand total of mortgages in force December 31, 1892 $169,115,558 Total interest for 1992. . . . .$15,045,030 Mortgage debt per capita. $143 Interest per capita for '92. $12.71 Mortgage debt per family of five.. .$715 Interest per family of five . . .$63.55 While in one sense this burden of debt and interest rests on all the people, and affects the prosperity of the whole commonwealth, it 6hould be re membered that it rests directly on tho shoulders of the debtors. It is im possible to state what - is the burden per capita when calculated for the debtors alone, but of course it is vastly greater that the burden per capita for the whole nennle. . , .V - x 1 -. . ALLOWANCES. When the "prosperity shriekers" arc forced to take notice of mortgage statistics, they always try to dissipate their real force, by making allowances for tbis or that; and explaining away the figures. In this discussion I have made every reasonable allowance that could be made in order to make the argument and the conclusions absolutely unassailable: The chattel mortgage increase for one year is taken for the total chattel mortgages in force. The interest has been figured at a rate lower than is actually paid. No deductions have been made for over 1900 releases by foreclosure oa farms and lots, nor for the thousands of foreclosures on chattels, and the many cases of transfer of property to satisfy the mortgage without the formalitv of foreclosure. It should also be remembered that these tables do not represent the whole indebtedness of the people. There is a vast amonnt of money loaned every trAAHAn naitontiol enrtn rUir mnA lit 1 t surance policies, and other valuable collateral. There ar8 store-bills, doctor-bills, and bills of many other kinds that would aggregate many millions of dollars, none of which appear in these tables. Then there are county, city, precinct and district bonds, state and county warrants unpaid and drawing interest, and bonds of private corporations all of which would amount to many millions ; more, ii ine trutn 01 wnat is snown in these tables is appallinj, what would ? f, K U I IIIC LI LI II UC - t INTEREST AND CROPS CDMPARE0. ' It is impossible for the mind to grasp such vast sum?, or to realize their mag