The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1875-09-09
AN EXTRAORDINARY REVOLUTION
NOW PROGRESSIVE.

A marked revolution is progressive in
Eastern States and cities, not only of
opinion but Of social and financial facts and
necessities. Enormous accommodations of
wealth led to the lending of vast sums on
real estate in Eastern cities, towns and
country. Countless millions drawn by fire
and life insurance companies from South
ern communities, are thus loaned. New
York corporations cannot lend money be-
yond the States confines and thus there are
first, second and even third mortgages on
New York City and country property, and
there is first mortgage on most farms in
the East. The city debt of New York has
been constantly augmented by the CHASTITY
rabble governing the place, and rates of
taxation are enormous. Not only is prop
erty in the city unstable, but those splen-
did abodes of opulence, along the Hudson,
are all mortgaged. These palaces and cot
tages have recognized the effects of tinan-
cial contraction and the owners and borrow
ers have found it easier to surrender their
homes and farms to the New York money
lenders than to pay interest. If anybody
would dispose of the widest Texas land
there is no difficulty, just now, in trading in
New York for paper secured 10y second and
third mortgages on country villas as charm
ing as was Irving's Sunny Side or Van Blu
ren's Lindenwald, or Forests castle, or the
home of the Livingstons or Van Rensel-
laers. Countless millions in value of real
property is thus lapsing into the hands of
insurance corporations and of minors and
guardians and retired capitalists. 1t is not
saleable and produces no rent. Taxation is
too high, local and State, and farm or
palace or city tenement house is profitless.
This condition of things staggers the con-
fidence of capital in its own wisdom. Bank
ers and manipulators of the great life and
fire insurance and banking corporations are
almost crushed beneath the absolute weight
of real property utterly valueless and UNI
productive in their hands. Borrowers can't
pay, and if they could, in the present con-
dition of the money market, it is cheaper
for them to surrender mortgaged real estate
than TO borrow money and pay interest. OF
all the necessary results of this condition
of the North we do NOT propose to speak;
but one palpabie consequence is even now
disccrnible and progressive Money-lend
ers, bondholders and holders of life and
fire insurance stocks do not want novels or
palaces or parks or gardens or farms.
These have no coupons and their mortgag-
ors cannot afford to hold them even at
the light cost of six per cent. payable
semi-annually on an original valuation of
one-half the cost of the property.
Everybody would sell and nobody will buy
and real property is the substratum and
foundation stone of the wealth of Eastern
capitalists and especially of great Eastern
corporations constituted of these capitalists.
What is the remedy for this condition of
things2 Plainly enough there can be but
one. II money were less valuable and more
abundant and evenly dilfused, and cost less
Of goods or land, these mortgages would
still pay interest on sums borrowed, and
the capitalists could still live luxuriously
with no other serious or more troublesome
occupation in life than the clipping of cou-
pons from first, second and third mortgage
bonds. There is no help for it. Eastern
bondholders, within the next few months,
will be the veriest of Billallen imitation
lists. Recent events in California must has
ten this inevitable contamination and before
candidates for the presidency are nominated
Eastern bondholders will be loudest in as
sorting the plain truth, as propounded by
the Ohio Democracy, that the sudden re-
sumption of specie payment would utterly
ruin every man who owes any sum, however
small, and so lessen the value of property,
of merchandise, and of farms and homes
forced on the market, that everybody must
be necessarily bankrupted. 1t viii be ex-
ceedingly fortunate if events here foreshad-
owed unity parties on financial issues.
Popular attention may not then be directed
from the universal dtri sderd flames to ques-
tions of infinitely profounder import, in
volving the fseedom of the white race IN
the South, the retention of its distinctive
ness, and surely involving the peace and
prosperity of nine American states.