Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1884-09-23
The Indebtedness of Texas Cattlemen-
It's Cause, Etc,


Texas Lave stock Journal
That many OF our leading cattlemen
have become greatly involved, Is fact
too potent and evident to admit OF de-
nial. 1t is, however, but just and due
business that the cause OF this in.
debtedness should be explained. Glen.
orally speaking, II is a reflection ON
the business when those engaged In
that particular business become I'm.
volved and fail 10 meet their obliga-
tons, but In this particular Instance
and TO the credit of this great and Ia.
crative industry he IL said such IA
not the case. Many of our ranohmen
who, ON account OF their limited means
should have oontented themselves
with being the happy owner OF a herd
OF one thousand head and clear OF
debt, could not thus content them.
selves they felt that they must in
crease their holi ings 10 tens of thou.
sands, and TO accomplish the desired
end they bought largely on time.
They not only bought cattle on time
but they used their borrowing
powers to their utmost capacity
With all our home banks, and
when these had no more money
to lend they went still further and
negotiated heavy loans In 81. Louis,
Kansas City, Chicago and other East
ern markets. Such was their anxiety
10 increase their herds that they
seemed TO never think OF the final
reckoning or how they would stand
when pay day came. In making these
I large purchases they ofcOurse accumu-
/ lated large herds OF mixed stock cattle
not suited for market. The merchan
table beef cattle which usually does
not amount To more than ten per cent
OF the entire herd could not be made to
more than pay interest and working
expenses. As long as money was
plentiful they found no difficulty In
getting the necessary extensions or OF
borrowing from one bank TO pay an
other gradually decreasing their
Indebtedness last as a good
paying buslness would allow.
SO matters continued TO move
smoothly on, and the ranchman wh0
should really have only been the
owner OF small herd, had the salts.
faction OF numbering his cattle by the
tens of thousands, and OF being ciassed
with the cattle kings Of the West
| Unfortunately this happy state OF NJ
| fairs could not always exist. The
stringency In the money market, the
stagnated and depressed condition of
business generally threatened 10 gen
eral panic In the monled markets, CON
sequently the bankers not only de.
| clined TO make further advances but
perslstently demanded that the obi.
cations held by them for loans already
made must be promptly met Then
II was that those who had 80 rockies
ly over-iumpod themselves began to
realize the embarrassing position they
were In, Many of them owners Of cat
tie and land worth double, sometimes
/ treble and even four or five times as
much as their entire indebtedness, vet
only small percentage OF their herds
We're merchRntable beef cattle, and
only small percentage could
be turned into ready cash. On
account of the scarcity OF money and
the indlsposltion OF banks 10 make
loans, there was but little demand for
the young and female cattle, conse-
quently the only alternative left was
10 sell at a sacrifice or allow maturing
obligations 10 go by unpaid. TO meet
these obligations many sales have
been made at much below the actual
value of the stock, and others are like
~ to soon follow, but fortunately for
the business and for the country the
class Of cattlemen that did business In
this way are largely In the l. iuority.
Many OF them have already made suf.
ficient sales to meet their demands. II
is TO be hoped they will all do so soon,
after which we sincerely trust the les.
son Of the present year will learn ench
and every one 10 keep within bounds.
When all this Is done there will he no
declines or sacrifices made In cattle,
but they viii continue 10 increase In
price, and bring wealth and prosperity
TO their fortunate owners. We refer
thus fully TO the reckless manner iD
which some OF our cattlemen have
dealt, not to RlOat over their misf0r-
tunes, for we know them 10 bo honest,
high-mlnded gentlemen, who certain
ly have our sympathy, but TO show
that II Is the manner In which the
business has been transacted, and not
the business itself, that II Is the
result OF oyer-reaching and not Of any
legitimate decline In the prices of cat.
tie that now causes many OF our largest
cattle owners 10 sell stock they would
prefer TO hold. No other business
would hold up like this one has under
such management. No other business
could afford 10 pay the high rates OF
interest paid by Texas cattlemen. Yet
with all this Texas cattlemen have all
made money, and even those who ee-
gan q few years since with compare
lively nothing have, Notwithstanding
all these difficulties aud bad nlanage-
meDt, made money, and even those
who are furtbest behind own an
abundance Of property 10 pay one
hundred cents on every dollar they
owe. We conclude that the fact that
the cattlemen OF Texas have heen able
10 carry their heavy Indebtedness and
pull through this unexpected flnhn-
cial crisis without singie failure, Is
the best argument that can be used 10
prove that the cattle business Of Texas
Is to-day the safes, kurest and best
paying one exinnt.