The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-11-19
The Condition OF our state EInanciaIly
Considered.


Ever since our usury law was abolished,
our financial condition has been growing
worse and worse every year. Il Is q mis-.
taken notion that a man has q right TO make
as much with one hundred dollars ia money,
as he has with that amount Of property.
Money is the basis Of all our business trans
actions and when you increase or lessen the
value of that basis, you disturb IN very
serious manner every branch and ralnilca-
ton Of trade. Money is the standard by
which every article Of trade or commerce Is
measured, and its value is estimated through
out the Union at from five to ten per cent.
per annum. When you are allowed 70 in
crease that standard value, you destroy OK
lessen the value Of everything else in COM
merce; we must have q basis or standard
by which we can regulate the prices Of all
productions. The tendency Of increased
value in that standard is to destroy conf
dence.
If man who has money to loan fnde he
can get three per cent. per month, or thirty
six per cent. per annum, he will be sure 20
do It, and no ono can much blame him, be-
cause the law allows It, but this Is putSing
much higher value on the dollay than IT,
intrinsic worth. It is in principle, just the
same IS drawing large amount from circn-
lation. You might increase the amount 81
circulation, and under the ruling Of our
present laws that increase would benefit the
laboring classes little, II any, for that In
crease would, under the existing cxorbi.
tant rate Of interest, soon find is way 20
the bankers vaults and our circulating me-
dunn be as scarce as ever.
At tho present rate Of interest no man
who nghtfully understands the subject
would borrow only in small sums, because
he must know that q large sum with the
present rate Of interest would be his ruin.
To illustrate the views we take, We win cite
case not uncommon among us. An immIs
grant comes here with only q thousand dol
lars TO buy land and to better his condition.
He sees al around him land far more pro-
ductive than any he has ever seen before.
He is anxious to purchase and soon finds
tract that he wants. He 70 told ~ the
owner that he can have the land for two
thousand dollars, and II be win pay 8
thousand cash, the owner viii trust him for
the balance q year, provided he viii give
his note for the other thousand bearing ten
per cent. interest from date, and q deed 81
trust on the land 70 secure the payment
The man buys the land under these condi.
tons, thinking ho can find some way 70 paF
the thousand dollars when due, but Just 10
fore the time expires he finds from some mis-
fortune or unforeseen circumstances, thai Be
will be unable 70 make the payment. Now
what can he dot IL be gives up TIE land
he loses bis thousand dollars and bis years
labor. He Is begear n De does. e win
never do; he must borrow the money % pay
the debt he finds man willing - loan, D1t
he must have three per cent. per month o.
thirty-six per cent. per anuum. There q
DO other help. be m1st have y He eiF|
/ his note for eleven hundred dollars. bear
/ ing thirfy-six per cent srfeIrei-t Ne1II-
ak more than TIE first - Attic end - I8e
- fmin fEH 70 p1g and H
1tfn hundred and n@
dDIIl = tie ga 81 an0fIf
land with on tho Improvements
from him. He s. q ruined nars-I.1 I
lebor lost, and money lost ItI. s.
way the borrowing af he present I |
interest works. All c' " ~
iniufiO1aIg Affected Df e tofI nseIcI
1l1crcfg o. much, Il noi n|afe
other gIae1- They c1nnD1 oITo@ 5I
at thirtg-1iE per cent. ~ I.ri. ae
disc Tor they do not make
t1at amount O clear pToIt 81 Ia
The consequences Is That Ht1
they pce they pnlcf0o
aa1 ol- compelled ~ ~
clth. FOX e i1cI did Ho
ruined unacl tho ptenf 81 1'er
/ You r1r1oI Blame I1t 1Nl fl.
credit lcT g N a11t.I4
/ fs,g naf TIE Debtor
/ end I1oEs Tr1tr.
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