These tens of millions of individuals become weaker and weaker consumers of their own products and products of the nation. So that, the few prosperous families are obliged to look after wider foreign markets to export to the produce that the millions here have no means, no purchasing power to acquire. It has long been the case in England, where millions of the people wear overcoats, for instance, from 5 to 10 years each, without being able to procure new ones; while the exports of all goods are ever going on to the different foreign markets. And the United States are growing similar to Great Britain in almost every respect. * * *
“The percentages representing encumbrance for various rates of interest,” says the Extra Bulletin |RATES OF INTEREST ARE HIGHER ON THE POOR.| No. 71, “show that the larger encumbrances bear the lower rates of interest, as a general fact.” And the differences in the rates of interest are from “less than 6 to greater than 12 per cent.” Hence, the poorer the mortgagors, the greater the weight of oppression they bear; and the greater oppression they bear, the quicker they lose their properties, and the greater becomes the number of tenants and of economic slaves which we have.
The brute-minded creditors think that it is natural to skin the helpless, because they have no great security for the loans.
What is the significance of mortgages for the nation? And what do other men acquainted with mortgages think of them?
The significance of mortgages has already been considered by many thoughtful men, and it is not out of place to quote here the ready views of some of them.
SIGNIFICANCE.
As there are two economic classes of the people in the United States,[[105]] so “there are two views, both of which must be understood.” The |SEMI-OPTIMISTIC VIEW.| view presented by writers like Mr. Edward Atkinson is known to some people as worthy of regard, notwithstanding that these writers knock their heads against a mountainous wall of facts. “They argue that the mortgage is an indication of prosperity.” Mr. Atkinson says, in the “Forum” for May, 1895, writing (before the complete mortgage returns given above had been reported) concerning the census returns for 33 States:
“The first startling fact is that in these 33 States and Territories nearly 7,000,000 mortgages have been recorded in ten years for a total sum of nearly $9,500,000,000. The final statement, covering the whole country, which has not yet been published, discloses the fact that 9,517,747 mortgages were executed in the decade 1880-89 to the amount of $12,094,877,793.”[[106]] * * *
And then because “on the first of January, 1890, the amount of these mortgages remaining unpaid in the whole United States was $6,019,679,985,[[107]] Mr. Atkinson says: “It therefore appears that during the decade one-half of the mortgage debt incurred had already been paid.” But he forgets to deal with the process of losing property by the thousands of the debtors who appeared without property in 1890.
And being uncertain about mortgages on acres and lots at the beginning of the last decade, he infers that “the least estimate of the sum due on acres and lots at the beginning of this period (1880-90) would be $1,500,000,000.” And continues that “these original mortgages executed prior to 1880 must have been wholly liquidated, mostly by payment.” * * *