FARCICAL AUCTIONS
UNITED STATES FARMERS.
LOAN COMPANIES THWARTED,
Collapsing under the burden of mortgage debts they are unable to meet owing to high taxes and the d3» clines in land values and commodity prices, Middle West farmers of the United States are resorting to direct action to save their homes.
They are outwitting land companies which charge as high as 36 per cent, interest on small loans, by staging "penny auctions" at foreclosure sales.
Often as many as 5000 attend a sale, and restrict bids to a few pence. They overawe or violently thwart foreclosure agents, who try to .increase bids. Rcently chattels pledged for an 1100 dollars (£220 at par) loan), went for 16 dollars 17 cents (£3/7/4*). One farm, mortgaged for 2000 dollars (£400), brought two dollars.
The money realised goes to the lender in satisfaction of his claim, and the property, legally sold to neighbouring farmers, is then left in possession of the orginal owner, under a 99 years' lease.
Farm mortgages throughout the country aggregate 8,500,000,000 dollars (£1,700,000,000 at par). Many States have instituted or are considering moratoriums.
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Bibliographic details
Ellesmere Guardian, Volume LIV, Issue 22, 21 March 1933, Page 3
Word Count
182FARCICAL AUCTIONS Ellesmere Guardian, Volume LIV, Issue 22, 21 March 1933, Page 3
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