728 AGRICULTURAL ECONOMICS 



mortgages. The trustee never vouches for the character of the 

 securities upon which debenture bonds are based. He only certifies 

 the face value. Bad securities taken for large commissions are likely 

 therefore to be put into the hands of the debenture trustee. There 

 is nobody to inspect or to criticize. Another objection is that the 

 investor under the debenture system is without speedy remedy. He 

 is part of a series. He cannot move independently. The advantages 

 of the debenture system are that the investor is not compelled to 

 stand or fall with one mortgage or one piece of real estate. Each 

 debenture bond is, in a sense, insured by all the rest of the series. 

 The debenture, too, is an absolute guaranty by the mortgage company. 

 The western mortgage business is the outgrowth of unprecedented 

 economic conditions. Within a brief period, an unusual amount of 

 capital has been devoted not directly but indirectly, by way of 

 mortgage loans to the development of a vast area of agricultural 

 country. The amount of capital advanced has been great, but not 

 out of proportion to the results achieved. The purpose was legiti- 

 mate, and not of the nature of a South Sea Bubble. Great advantages 

 have resulted to the settlers, the brokers, and thus far to the capital- 

 ists. Losses to capitalists have been small, compared with losses in 

 other lines of investment. Present conditions and future prospects 

 seem to justify caution, but not alarm. 



235. SOME MORTGAGE COMPANY OFFERINGS 1 

 J. A. B. COUPON NOTES $5,000.00 



A series of Ten (10) coupon notes, in denominations of $500.00 each, 

 dated January igth, 1916, maturing January ipth, 1921; bearing interest 

 at the rate of 6% per annum, interest payable semi-annually to the 



Trust Company, , Texas; all equally secured by first mort- 

 gage to the Trust Company on 241 acres of land in W. County, 



Texas, about eight miles southeast of W. 



The land is all under good fence, wire and post. About 50% of it 

 is good, black, waxy soil; the balance is black sandy loam all good, 

 rich soil. About 150 acres are in cultivation, probably 60 acres being put 

 in for the first time this year. Of this cultivated land, about 75 acres were 

 originally black waxy prairie, now in good state of cultivation; about 

 75 acres were originally bottom timber land, probably 30 acres put in cul- 

 tivation in 1915, the balance being put in this year. The tract is practically 

 level; has one small drain or slough running through it, which adds materi- 

 ally to the drainage. 



1 From the current advertisements of two prominent companies. 



