The Question of Mortgages 15 



cent and sell it (lend it) at ten per cent." If a 

 farmer has his business well in hand, and has 

 placed the mortgage as part of the purchase 

 price of his land, it frequently becomes a blessing 

 in disguise. It is easily proved that a moderate 

 mortgage may sometimes be a positive help to- 

 wards prosperity. The conditions we are con- 

 sidering are somewhat similar to those of most 

 merchants in the cities, who rent the buildings 

 in which the business is done instead of owning 

 them, in order to have all their funds available 

 for working capital. It will be noticed that John 

 Doe had, at the beginning of business, a good 

 working capital, $315 worth of wheat, a demand 

 note of $163.25, and a note of $376. His bills 

 payable amount to $107, but when these are liqui- 

 dated he will have $268 cash and $854.25 of 

 quickly available products and bills receivable. 



In a city of twelve thousand inhabitants it was 

 found that about nine- tenths of the chief busi- 

 ness enterprises were conducted in rented quar- 

 ters. Why may not the farmer find relief from 

 annoying floating indebtedness by renting the 

 plant (farm) , thereby securing an abundant work- 

 ing capital which gives opportunity to buy at 

 the lowest cash price and to sell when prices 

 have advanced ? The unwise man in haste to 

 get rich would have paid out the larger part of 

 his working capital on the mortgage to save a 



