It must be borne in mind that in this chapter we have to consider only those families of the nation which were in possession of real or artificial^[86] property before and after the year 1890. And we have especially to consider those of them whose properties were mortgaged; and those whose properties were to be lost in consequence of the mortgages they were encumbered with. While the propertyless or the tenant families, that were treated in the preceding chapter, will now be kept in the background of the statistics with which we have to deal.

When, however, we are through with the statistics, we may make references to and may even make special statements about the tenant families treated before; while the prominent position will now be given to the mortgagor families, showing how they fall from the class of property owners, become debtors to the owners of greater wealth, lose their properties and increase the numbers of the propertyless.

It is important to note here that the loss of the rights to property always precedes the actual loss of property itself; and that the fall of the propertied into the sphere of dividogenesure, also precedes the actual economic slavery of those that become propertyless.

The very day in which a propertied person mortgages his property he loses his rights for the wealth he has owned, because his property goes from him as a security "LOSS OF RIGHTS PRECEDES LOSS OF PROPERTY." for the loan he makes. And while losing the rights, he takes upon himself the obligation to divide the results of his labor between the lender and himself, and thus falls under the influence of dividogenesure. For, henceforth, he spends his active energy in favor of the creditor and himself, and is obliged to regard the interests of the creditor as of more importance than his own. The rate of interest to the creditor must be accurately paid so much per cent per annum for the loan. Hence, the mortgagor at once appears in the position of a tenant of farm or of any other property. And it depends on the rate of the percentage he agreed to pay out of the results of his labor whether he is better off or worse even than a mere tenant. It also depends on the fact whether his mortgaged property is a large one or small, and whether he has mortgaged one part or the whole of his resources of wealth. In any way, a mortgagor, according to the degree of his indebtedness, is an economic slave of the owners of greater wealth. And he must have a supernatural ability and must use an extraordinary effort in order to pay his debt or to redeem his property. Otherwise his property must pass into the absolute ownership of the wealthy families that millions of other individuals already labor for under the modern type of slavery.

But let us now see the statistical facts and then we may better judge of what mortgages signify and what they mean to the nation. We shall take the other class treated in the same bulletin out of which we extracted the 6,624,259 tenant families for the preceding chapter.^[87]

STATISTICS.^[88]

“Extra Bulletin No. 98 of the United States Census, 1890,” (of the mortgagor families) “says:”

That out of the whole 4,767,179^[89] farming families in the United States only “65.92 per cent,” or 3,142,414 families “own the farms "FARM FAMILIES IN DEBT." cultivated by them.” And “that 28.22 per cent,” or 886,839 families out of the 3,142,414 owning ones, “own subject to encumbrance,” i.e., they are in debt; “and 71.78 per cent,” or 2,255,575 families, “own free of encumbrance.” So that among every 100 farm owning families 72^[90] own without encumbrance and 28 own with encumbrance.

And the same Bulletin further says: That “on the owned farms there are liens^[91] amounting to $1,085,995,960, which is 35.55 per cent of the value of the encumbered "DEBT AT 7.07 PER CENT." farms, and this debt bears interest at the average rate of 7.07 per cent,” which is more than 7 dollars for every $100 borrowed. It is at this rate per annum that the farmer’s labor energy is drained by the wealthy creditors or by the bankers. “Each owned and encumbered farm on the average is worth $3,444.” This average, of course, includes the families far above $3,444 worth and far below it—“and” each, on the average, “is subject to a debt of $1,224.”

Hence it follows that the principle of dividogenesure, in these cases, has a yearly demand that every debtor should, on the average, pay about $86.53 worth of the results "INTEREST." of his labor energy to his creditor. And it is a question whether even a highly effective capital worth $1,224 is really able to increase the yearly results of the debtor’s labor to the extent of $86.53—I mean an increase in his product absolutely due to the aid of the borrowed capital on which he is to pay this sum as the annual interest charge. It is rather probable that the majority of the mortgagors pay more than half of this annual percentage at the expense of their personal energy, even under the condition of the most effective use of the borrowed means. For the rate of 7.07 per cent is unconscientiously exorbitant and is generally abnormal.

As to the families owning homes, the corresponding facts are “that 27.70^[92] per cent,” or 809,831 families, out of the 2,923,577 home-owning families, “own their "HOME FAMILIES IN DEBT." homes with encumbrance, and 72.30 per cent,” or 2,113,746, “own them without encumbrance.” So that in every 100 home-owning families 28 are in debt and 72 are free of debt. “The debt on owned homes aggregates $1,046,953,603, or 39.77 per "DEBT AT 6.23 PER CENT." cent of the value of the encumbered homes, and bears interest at the average rate of 6.23 per cent. An average debt of $1,293 encumbers each home, which has an average value of $3,250.” This average again includes the family homes worth far above and far below the indicated value. While the homes below this value may have greater encumbrances than the others; and it is certainly the poorer families that lose their properties first, if they attempt to get rich by means of the loans they can obtain at the rate of exorbitant per cents.

If then the average debt of these 809,831 families is $1,293 and the rate per cent for it is 6.23 per cent per annum, every one of them "AVERAGE OF INTEREST." is, therefore, a subject to the principle of dividogenesure at the rate of $80.55 a year. It must, however, he understood that the averages indicate only the general truth, and always conceal the particular miseries and distress of many millions of the people. And I understand that many of these debtors have been in the gainful pursuits spoken of by Mayo-Smith, and hence the dividogenesure presses upon them from two or even more sides. But it is only the next census that will show us the situation these debtors are in.

Let us now speak about the cities and towns with one side of which we have become acquainted in the preceding chapter.

CITIES AND TOWNS.

“There are 420 cities and towns that have a population of 8,000 to 100,000, and in these “cities "OWNERS OF THE CITIES FOUND AMONG 414,544 FAMILIES." and towns 64.04 per cent,” i.e., 1,120,433 “of the home families hire and 35.96 per cent,” i.e., 629,146 families “own their homes, and of the home-owning families 34.11 per cent,” i.e., 214,602 “own with encumbrance and 65.89 per cent,” i.e., 414,544 “own free of encumbrance. The liens on the owned homes are 39.55 per cent of the value of those subject to lien. Several averages show that the rate of interest is 6.29 per cent; value of each owned and encumbered home is $3,447; lien on the same is $1,363.” (See Appendix I.)

So that these debtors of the 420 towns and cities are also subject to the principle of dividogenesure at the rate of $85.73 each per every year, as long as the mortgages remain in force and are not foreclosed.

“The cities that have a population of 100,000 and over” (up to millions) “number 28, and in these cities 77.17 per cent,” i.e., "OWNERS OF THE LARGE CITIES FOUND AMONG 276,744 FAMILIES." 1,503,911 “of the home families hire and 22.83 per cent,” i.e., 444,923 “own their homes; 37.80 per cent,” i.e., 168,179 of the latter families have encumbrance and 62.20 per cent,” i.e., 276,744 families are free of encumbrance. Averages for owned and encumbered homes are: Encumbrance, $2,337; value, $5,555; rate of interest, 5.75 per cent. Homes are encumbered for 42.07 per cent of their value.” This is the largest average encumbrance among all encumbered homes and farms.

So that every debtor in these 28 large cities (and there are 9 of them in every 100) is a subject to the principle of dividogenesure at the rate of $134.37 each in every year as long as the mortgage is in force and is not foreclosed. It is after the foreclosure that the debtor cannot even redeem his mortgaged property; he has then to remain propertyless. Let us now sum up the preceding conclusions in a tabular way, as follows:

This double table shows clearly enough that there were 8,320,831 tenant and mortgagor families that have been subject to the principle of dividogenesure. And "SUBJECT TO DIVIDOGENESURE." that these families had 41,061,563 individual members, including children that have now grown up to the same fate of the drain of labor energy, under which their unfortunate parents have been. For all these individuals, of course, cannot exist without working in favor of the few money lenders and propertied men, because the tenants have no resources to apply their energy to, and the mortgagors cannot profit themselves by the loans of exorbitantly high per cent of interest. Hence, they are all drained and all are economic slaves of the wealthy few.

Besides, the necessary life-expenses of every one, subject to a strong dividogenesure,^[94] are absolutely greater than the same expenses of any one in the wealthy group. While the incomes of the rich that the millions of other individuals and the forces of capital work out, cannot even be compared with the semi-incomes of the poor that are obliged in any way to work for the wealthy, when these are disposed to give them a chance to work.

Further, is it not an abnormal reality that the 420 towns and cities in the United States should belong "CITIES OWNED BY LESS THAN 24 PER CENT OF THEIR PEOPLE." to less than 24 per cent of the entire population in them? And is it not strange that the remaining 76 per cent of the inhabitants in these cities and towns should live and labor with the purpose of feeding, fattening and enriching these 24 per cents of the people who are really the owners of these towns and cities? And is it not abnormal in the extreme to have 28 cities, populated by hundreds of thousands and by millions of individuals; and that these "CITIES OWNED BY LESS THAN 14 PER CENT OF THEIR PEOPLE." cities, including all kinds of buildings, machines, houses, etc., etc., should actually be possessed by less than 14 per cent of their population? And that, in addition to this extreme abnormity, the remaining 86 per cent of their people should be obliged to divide all results of active and creative energy with these few owners of the great cities?

But what is inconceivably strange is that this extremely abnormal situation should be produced in a nation governed by the people’s representatives chosen by their good will and purpose; and that this will and purpose should bring about the results of so great injustice and wickedness against this people, is only possible on the basis of ignorance, neglect of duty and selfishness.

Let us now have an idea of the progress of development of the principle of dividogenesure in the United States, and of the rapidity with which the people fall under its oppressive influence, thus gradually becoming propertyless or the absolutely helpless economic slaves of those that capture them within the extensive nets of that principle.

“Extra Census Bulletin No. 71 gives the statistics on mortgages by amounts, length of mortgage, rate of interest for the United States from 1880 to 1889.”

It says: “That during that time 9,517,747 real estate mortgages, stating amount of debt incurred, were made in the United States, representing "INCREASE OF MORTGAGES." an incurred indebtedness of $12,094,877,793. The number of mortgages made during one year^[95] increased from 643,143 in 1880 to 1,226,323 in 1889, or 90.88 per cent, and the yearly incurred indebtedness increased from $710,888,504 in 1880 to $1,752,568,274 in 1889, or 146.53 per cent.”

“With regard to mortgages on acre-tracts, the number made during 10 years was 4,747,078, representing an incurred indebtedness "ACRE-TRACTS." of $4,896,771,112.” The increase in making them was as follows: “The number of these mortgages made in” the year “1880 was 370,984; in 1889, 525,094.” So that during the years between these “an increase of 41.54 per cent” was made; “while the incurred indebtedness increased from $342,566,477 in 1880 to $585,729,719 in 1889, an increase of 70.98 per cent.

“The increase was relatively larger in the case of mortgages on lots. They numbered 4,770,669 during the 10 years, and the indebtedness "ON LOTS." incurred under them amounted to $7,198,106,681. From 1880 to 1889 the annual number made increased from 272,159 to 701,229, an increase of 157.65 per cent. During the same time the amount of annual indebtedness incurred increased from $368,322,027” in the year 1880, “to $1,166,838,555” in the year 1889, “an increase of 216.80 per cent.”^[96]

As you see, the yearly increase in the numbers of making new mortgages was astonishingly great on all sides. This progress of falling under the influence of dividogenesure, falling into debt, indicates that the people could not avoid becoming slaves to the percentages for loans. This progress indicates that they were compelled by the generally abnormal conditions of existence to take the risk of losing their properties. And all cities thus grow as “New York City,” where “but 6? per cent of the families owned their homes”^[97] in 1890.

“During the decade 622,855,091 acres were covered by 4,758,268 mortgages stating and not stating the amount of indebtedness incurred under them. The number of acres covered by mortgage in 1880 was 42,743,013; in 1889, 70,678,257; an increase of 65.36 per cent. In the case of lots covered by mortgage the increase was 198.25 per cent. The number” thus “covered by mortgages stating and not stating amount of indebtedness in the former year being 429,955; in the latter year 1,282,334.

“At the end of the decade, January 1, 1890, the "ON ACRES AND LOTS." real estate mortgage indebtedness amounted to $6,010,670,985,” on the whole, “represented by 4,777,698 mortgages,”^[98] which were divided into the mortgages on the acres and the mortgages on the lots.

It was also computed that the average length of a mortgage in the United States is longer than four and a half years, or exactly "LIFE OF MORTGAGE." “4.660 years.” The Bulletin calls it a “life of a mortgage,” which may last “as much longer without being paid off;” that is, a mortgage may last as long as the creditor gets his rate of interest, or as long as his increasing interest is secure in the whole value of the mortgaged property. Otherwise a mortgage is foreclosed.

But what is specially important for us is whether the mortgagors are able to extinguish their debt with the same rapidity with which it was incurred by them? If they are able to pay off their debts at the proper times, then mortgaging of property would at least appear uninjurious to their well being, though it could not be regarded as profitable to them.

The same “Bulletin No. 71,” however, states that, “since mortgages in force were made, 12.68 per "ORIGINAL DEBT PAID: 12.68 PER CENT." cent of the original amount of indebtedness incurred under them has been extinguished by partial payments.” Now, it was time to extinguish all the original amount on mortgages in force. Yet 87.32 per cent of the original indebtedness could not be paid off by the debtors. And this is a sign of the "ORIGINAL LOSS OF PROPERTY: 87.32 PER CENT." most forcible argument, showing that the greatest majority of the mortgagors have been on the way to ruin, and on the way of losing their properties. It is thus the millions of tenants appeared in 1890.

THE PER CAPITA DEBT.

Instead of being paid off at proper times, the mortgage debt was accumulating so far that if it were divided among the entire population in 1890, every man, woman and child would have been in "PROPORTIONS ON STATES." debt of $96. Just as the Bulletin says that “the mortgage debt per capita in the United States is $96; the three largest state averages (omitting the District of Columbia) are $268 in New York, $206 in Colorado, and $200 in California. The smaller ones are found in the south and the Rocky Mountain region.”^[99] Such is the per capita debt in these three States.

“In 41 States 28.86 per cent of the taxed acres are covered by mortgages in force. The largest proportion of mortgaged acres is in Kansas, where 60.32 per cent of the total number of taxed acres are mortgaged. Nebraska stands next, with 54.73 per cent; South Dakota third, with 51.76 per cent.^[99]

“In the five States, Illinois, Kansas, Missouri, Nebraska, and South Carolina, 23.99 per cent of the taxed lots are covered by mortgages in force,”^[99] and so on in the other States. But the most important fact is the annual interest the people have to pay to the wealthy few for their loans.

AVERAGE RATE PER CENT ON THE
DEBT.

“The average rate for all mortgages in the United States is 6.60 per cent. For mortgages on acres,” the average is “7.36 per cent; for mortgage "U.S. RATE PER CENT." on lots, 6.16 per cent. These rates make the annual interest charge on the existing real estate mortgage in the United States amount to $397,442,792.”^[100]

Now we have reached the principle point in these statistics. Imagine that the families in debt are annually charged with the rate of interest amounting to $397,442,792 "INTEREST CHARGE." worth of the results of their labor, and that the group of creditors get this amount of wealth yearly without work. And think that, if the average life of a mortgage is even 4½ years long, these families have to pay $1,788,492,564 worth of wealth produced by their energy during this time. But we were told that the average length of a mortgage life continues “as much longer without being paid off,” that is, it lasts nearly 10 years, and these families have, therefore, to pay nearly $4,000,000,000 worth of the wealth produced by them during this time. That is how the debtors are affected by the principle of dividogenesure which steadily works in all directions in favor of the wealthy few. This is the economic slavery that the Nineteenth Century has established for the people of the United States.

The Bulletin shows that this interest charge is for mortgages on acre-tracts and on lots, against which the debt of $6,010,670,985 was in force in 1890, after which it continued to exist and to increase probably with the same rate as it increased in the previous decade. For, nothing special has been done to prevent the needy people from mortgaging their properties. So the mortgages were increasing and the annual interest charge against lots and acres, too, continued to increase.

But the Extra Bulletin No. 98 shows that the indebtedness on owned farms was equal to $1,085,995,960,^[101] and the same on owned homes was equal to $1,046,953,603;^[102] "INTEREST CHARGE ON FARMS AND HOMES." so that, added together, these two classes of debt amount to $2,132,949,563, as was stated in this Bulletin. And the average rate of interest on this debt is shown at the end of the second Bulletin to have been 6.65 per cent per annum. And “the annual interest charge is $141,910,106”^[103] that has been a burden on 1,696,670 families represented here in the table, p. 116. Of course, thousands of these families have now lost their properties forever, as there were liens on their farms and homes representing the above total of more than 2-billion dollars.

If we now unite the annual interest charge on "COMBINED INTEREST CHARGE." the acres and lots mortgage debt, and the annual interest on farms and homes mortgage debt, we find that these charges amount to $539,352,898 in every year, which must be paid in any way.

It is certainly not the yearly charge of the memorial past, but it was stated as existing in the year 1890, and would naturally continue as an annual interest charge up to the present day. The debtors must use an extraordinary effort in their toil, in order to get sufficient results from their applied energy for clearing up this annual interest charge, and keeping themselves alive.^[104] And to speak about an unusual prosperity of the people under such conditions is as absurd as to say that the creditors are growing poor from receiving the annual interest charge consisting of $539,352,898 worth of wealth because they get it yearly without work.

Yes, every one that speaks about prosperity in the United States knows what he means. For the statistical facts prove that there is an unusual prosperity for the very few that the tens of millions of individuals are bound to work for. But, is it prosperity for these millions of the propertyless *** and debtors? No, there is positive enslavement for them and their children. And it is the innocent children or posterity that are to be specially pitied.

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.” * * *

As regards this point we have equal or even greater reason to say that those mortgages have mostly been liquidated by an absolute loss of property, because at the end of the decade we have had many millions of propertyless families.

But the chief feature of the situation Mr. Atkinson wishes to vindicate is that the mortgage growth indicates prosperity and not the system of tenancy and landlordism as in Great Britain. He says:

“The evidence is conclusive that the increase of hired farms does not imply the permanent establishment "AFRAID OF PRIMOGENITURE." of the relations of landlord and tenant after the English fashion. It does not imply the concentration of land in fewer hands, but rather the reverse. It does imply better and more intelligent methods of agriculture, larger and more varied crops produced from lessening areas of land throughout the whole great grain-growing section,”^[108] and so on.

As to the prosperity, I will say, that a family securing a large amount of borrowed money or capital at low rates of interest may "CONDITIONS OF PROSPERITY." prosper under mortgage by efficiently applying the capital on its wealth, by efficiently applying the labor energy of the family members, and, especially, by efficiently applying hired labor upon its farm or any other kind of property. So that, only those mortgagor families can have prosperity, which are aided by many agencies in drawing incomes from their land. While all the poorer families must be ruined by the mortgages.

As to the argument that we have no establishment of tenancy after the English fashion of primogeniture, it is enough to refer the reader to the third chapter of this work, and beg him to understand it well by reading a second time. For the effects of primogeniture and dividogenesure are the same, as both principles demand that millions of individuals should divide the sole results of their applied energy with the few owners of capital and wealth, or else these millions must starve without employment. They produce economic slavery in England and in the United States, where most of the people are now propertyless and therefore helpless.

Dividogenesure, however, differs from primogeniture by including all mortgagors into its sphere of oppression.

And it seems to me perfectly naive to assert that “larger and more varied crops are produced from lessening areas of land throughout "LOGIC QUEER." the whole grain-growing section” of the country. For it really means that the more land the people lose through mortgages, the better crops they will produce, and hence the best crops must be produced by them when they lose all the land they formerly owned.

But Mr. Atkinson does not here deal with the fact that more than 64 per cent of the population in 420 cities and towns, and 77 per cent of it in the 28 largest cities are also tenants of homes, beside the tenants of farms he writes about. He does not speak of the fact that the 420 cities and towns actually belong to less than 24 per cent of their population, and that the 28 great cities in the United States really belong to less than 14 per cent of their population; and that the whole population of the 448 cities and towns are bound, by dividogenesure, to work in one or other way for the small per cent of their wealthy neighbors, the only independent population that holds the others in slavery. A dealing with these tenants would disprove his position. See appendix I.

Mr. G. H. Holmes, writing in the “Annals of the American Academy and Social Science Quarterly,” gives a more balanced view on the subject. He says:^[109]

“While mortgage debtors must admit that they have done better to obtain real estate on credit "PINCHING EFFECTS." than not to obtain as much of it as they have done, or not to obtain it at all, they are nevertheless in a situation where they feel the pinching effects of a reduction or loss of income more than real-estate owners do who are not debtors. This is owing to the interest that is wanted by the mortgagee.”

While a still better view is given by Rev. Wm. Bliss, editor of the Encyclopedia of Social Reform.^[110] He says:

“The mortgage indicates a hope of progress, but also a slavery to interest under which many sink.”

It is exactly the point of reality, for many propertied families borrow money with the hope of getting economically better off, but the "DECEITFUL HOPES OF VERY MANY." hopes mostly deceive them, and they find themselves in the trap of slavery on account of paying too high rate of interest for the loans they obtain. And it is this slavery to interest that makes them absolutely propertyless, slaves to dividogenesure.

And it follows that the claim of Mr. Atkinson, that mortgages are profitable to both the mortgagor and the mortgagee is only true in the cases of paying the rates of interest not exceeding 3 per cent per annum, which, however, does not exist in America. And if this rate had been in existence, then, an effective application of all possible agencies of production could make the mortgages profitable to the mortgagors and the mortgagees. While under the present conditions they are only ruinous to the former and most profitable to the latter.

But let us see the other view on mortgages which must be understood too.

“The view that America is becoming a nation "SEMI-PESSIMISTIC VIEWS." of tenants is well known,” says Mr. J. P. Dunn, Jr., writing in the Political Science Quarterly for March, 1890, after describing the situation as regards the Western States.^[111]

“BURDEN OF DEBT.”

“The mortgage indebtedness of the Western States is a matter worthy the attention of economists "MOUNTAINOUS AND IMMOVABLE." and statesmen, as well as of the people of those States. Whatever may be thought of its effects, it is a fact—mountainous and immovable. And more, the probabilities that loom far above the figures here presented make it very questionable whether the alarmists who have discussed the subject have in fact materially exaggerated the existing conditions. * * *

“If the people of the Western States may be considered thrifty and judicious, the people of Michigan may, and by the official records their condition appears to be as bad as that of their neighbors in Indiana. In 1887 an attempt was made by the bureau of statistics to ascertain the mortgage debt of the State through personal declarations of the owners of land. *** The returns show (report of 1888) that the real estate mortgages of the State amount to $129,229,553, with an annual interest payment of $9,451,851 on "AN EXAMPLE OF FORECLOSURES." a total realty valuation of $686,614,741. Of this amount $64,392,580 is on farms, and the annual interest charge is $4,636,265,” which the farms pay out of their produce. “The number of foreclosures made during the year was 1,667, and in only 131 cases were redemptions made, leaving a net loss of 1,536 pieces of property by foreclosure in one year. The situation apparently justifies the statement of Commissioner Heath that a very large per cent of the people seem to be in a financial rut, and are unable to extricate themselves.”

Here you are. Mr. Dunn’s view is not an argument based upon an inference from a guess, but on immovable facts of evidence which testify that the State of Michigan "LOSSES IN ADDITION TO LOSSES." alone assists the prosperity of the few wealthy families by the yearly contributions of $9,451,851 worth of wealth produced by the labor energy of its debtors. And that in addition to this contribution, the same debtors make a net loss of 1,536 pieces of property by foreclosure in one year. That’s how this civilized nation regulates the system of money-lending for helping the people to live. And that’s how the civilized slavery is instituted. It is by becoming mortgagors that the families pass from a bad degree of slavery to a worse, until they lose all property, and become totally helpless slaves of dividogenesure.

But do not flatter yourself by thinking that this is only the fate of Michigan. No, the people’s economic conditions are more or less similar in all the States and Territories, and some States are much worse off than Michigan, as the statistics show their situation.

Mr. D. R. Goodloe, in the “Forum” for November, 1890 (not knowing yet the facts of the East), says:

“The conclusion from this melancholy array of facts is irresistible. The virgin soil of the West is rapidly ceasing to be the home and "A CURSE OF HUMANITY." the possession of the sturdy American freeman. He is but a tenant at will, or a dependent upon the tender mercies of soulless corporations and of absentee landlords. We have abolished monarchy, and primogeniture, and church establishments supported by the State, yet the universal curse of humanity, the monopoly of the earth by the wealthy few, remains.” * * *

And I can tell Mr. Goodloe that these few have monopolized, not only the earth of the country, but also the hundreds of cities and towns, together with their buildings, their capital, their natural and artificial wealth, their houses, etc., etc., and the tens of millions of the inhabitants of these towns and cities too, have been economically enslaved, under the system of dividogenesure, to the same wealthy few.