The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-09-10
MONEY AND INTEREST.


MONEY AND INTEREST.
| There 10 no question but that tho ratio
o. interest In any community more
seriously affects the growth and pros
perity OF that community than any
other two features connected with
finance and trado. Money IL a COM
modify that is bought and sold as any
othor commodity, and as IL is moro ex-
tensiyely used aud more absolutely 81
necessity than any or all other COM
modities, ils price is the mater OF
choicest concern. II 1t Is cheap and
easily obtained, then can other Loces.
saries with 1t DO easily obtained. Ii
it is hard to get hold OF, If it is 80 high
that "only tho rich can afford it," it be.
comes luxury and the poor suffer
In consequence. 1t Is so commonly
used as a purchasing agent that States
have alone fixed on IL Il legal price.
In some States 1t IL 0 and In others s
and 10 por cent. AS the great medium
Of exchanges, trade depends for its
volume end activity on the plentiful
ness OF monOy, and Investments arc
many IN proportion rs money il plen-
tiiul and interest low.
so long as mon can got 10 or 20 per
cont. for money loaned ont, they do
not care to engage in other business
than money lending. Nor can men Or
dinarily make money in business ON
capital borrowed ct such rates. Whore
money sscarce and high, therefore, ex-
changes are few and Investments faw.
When tho volume of money In more
than sufficient 10 meet tho demand
times arc lively and the oountry prog
porous. Tho surplus money COOS
into trade and manufactures.
A low ratio OF interest of
course indicates an abundance of
money aud gives promise of easy
times and good prices Tor other COM
modiiios aud products.
Money has its march like population
and progress. 1t Is most plentiful in
the older sections, generally, aud its
price Is lower there, just as tho greater
supply makes other goods cheaper.
Gradually 1t gots TO branching ont and
follows population aad Improvement.
Now IL is tho East TINT Is favored
most. So, Texas is better OF then Now
Mexico or Arizona. There was time
hero when much higher rates of inter-
ost prevailed than now oven. so In the
near future another reduction may be
anticipated aud tho State become still
m)re prosperous. As rule, usury
laws do not work satisfactorily. Mon.
ey has iluctuatlng price just as wheat
has, and az absurd 60 interfere with
tho law of supply and demand which
makes price in tho one case, rs it
would In tho other.
But fortunately the growth Of tho
country and the operation OF healthful
natural laws are relieving the people,
and relieving them rapidly, of the bur.
den of high money. A few men out
here and further west are stll getting
rich by high rates, but their days arc
numbered, and in year or two more
tho relief will begin to DO felt, II not
sooner. II wheat were selling ut 81 per
bushel In Texas and surplus of IL was
going begging In tho East ut 40 cents,
1t wouldn't take long to break the
monopoly and lower tho price
hero. But money Is q
commodity OF traffic lust az
wheat 10 and whom IL settles down TO .
low price East aud rules high In the
wost 1t Is going to como out and holr
build mp tho country.
For those reasons, therefore, recon,
remarks by 80 good an authority a.
the Now York Indicator arc extremol,
encouraging. They show that tn,
"settling down" has been going OF
steadily in tho East and has abou
reached u proper level. The Indicate
says:
"For years the natural tendency hs
boon toward tho lowering of tho raj,
Of interest. From 10 por cont. Il ha
dropped to par cent, then 20 7 re
cont, which until u short time M,
was the loyal ratio In this State. From
that figure IL dropped to q per cent. NJ
the legal maximum, whilO prRotlcall,
II IL nearer 4, loans ey0u ON real ostpt,
ruling ut tto por cont. For good In
yestment securities, which can hp no
gotiated without difficulty or delay
tho ratio oil 4 per cont. will IN ordinar,
timos be considered very satislac
tory return upon tho money invosted
10 this point we are bound 10 come"
Now this low rate, Il will DO soon
arises from the presence OF solid bust
ness, good Investments, tho flling al
OF tho country with n stable, indus
trious population. Mon prefer puttiul
money out at Q por cont. In such
community to placing It at IL IN
rough country whore there arc condl
tons producing iluctuation la prices
; There Ia no reason, therefore, VIII,
money IN tho South should no
DO az plentiful and cheap q
; In the East. And IL IL no
hero, because insufficient cfIor
has boon made TO prove 10 foreign cap
ital that conditions are ss favorabi
here ~ anywhere. lit IL safe TO han
die wheat and corn In tho South a
J Eastern figures, II In lust a. safe :
handle that other commodity, money
In tho same way. Money IL no NOR,
: valuable aud subject 10 no greater
: risks than any other staple commo
, dity.
II half dozen men only raise,
}. wheat In Dallas county and altsmpss,
70 supply the demand for bread q ruiu
} ously high rates, aad no ssYol
. should b made 70 Induce oshsr farm