San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1889-01-24
Fischer, 8 Store.
For the Free Press.
That Unreasonable Interest.

For the Free Press
That Unreasonable Interest.
Farmer, mechanic banker, merchant, all
this question is for you. You who loan
are tempted to take too great risk, ana lose
while You who borrow simply fail. Our To-
cal records are sufficient proof, so far as we
are concerned, without another word.
Whose tract of land is that and that ? and
that2 Answer-That belongs to II man in
Galveston that one TO a man in New York,
and this to an English and that to French
syndicate. How came this land in the hands
of non-residentsp Answer-Through their
local agents, somewhere in the State, they
loan money at such a rate that the accuinu-
lation of interest eats up the land long be-
fore the owner could realize an increase suf-
ficient to lift the burden. Now, poor man,
what good Is this doing you? Answer
None rather harm, as it Is forever beyond
our reach as long as it remains in their
hands. If it changes hands it will, as
general thing, bring class of people
among us who are worthless so far as build
ing up and developing is concerned. These
are facts before us. They are not new nor
original. They have entered into the po-
litical economy of almost every State in the
Union. Men of foresight, men of business
have observed in almost every State that
the tendency of high rate of interest on
loans of money was toward evil in the end
for all classes. We would like, if your
space would allow, to cite just here numer-
GUS laws and regulations of various States
to show how they have dealt with this as
dangerous precedent in their financial af-
fairs If this thought was properly set be-
fore our people by man or men of note
and influence, they might he made to look,
calculate, think. Whoever is successful in
arousing public sentiment to action against
this evil will doubtless be unpopular but
truth will tell This will sooner or later
claim the attention of our legislators. Can
we have the remedy now and if SO, what
is it !? First, sell this land in Texas, that is
held in lnrge bodies to substantial working
men of small MEANS and thereby create q
healthy demand for money. Money for the
purpose of reckless speculation is not a
healthy demand, and those who loan on
such risk are forced to charge high rates of
interest in self defense Ask our local
bankers and loan agents where they have
placed the larger part of their loans in the
last ten years, and if they are truthful to
you they will tell you that seyen-eighths
have gone for speculation, while about one
eighth has gone for improvement of houses
for the people. But things are adjusting
themselves Just as they do in all countries
under same circumstances. The money
loaner is becoming rich, the stockmen and
spectators are broke and poor, and grad
ually yet slowly the prudent farmer who i'm
proves his home is becoming the source of
our wealth and development. Small loans,
well secured and invested in real estate i'm
provements. is bevond a doubt the best pol
icy for ALL The spirit of speculation has
been the curse of our country. 1t has
wrecked almost as many men in Texas as
whisky. If our interest law was modified
and our rates lower, our merchants, bank
ers and money men would guard the door
more carefully. A healthy demand is what
we need. Again: now careful, thoughtful
reader, watch closely as you read. If Texas
pays such enormous rates of interest on
money, and so much beyond what can be
obtained in the East, why does not money
flood the country until competition shall
force down the rate of INTEREST," Why are
our people forever clamoring about the
scarcity of money ? not able to pay debts,
not able to improve, not able to educate ?
This he cannot do, and the temptation be-
comes too great to mortgage to some east
ern firm and speculate on the money. This
he does and only awakes to find his land all
gobbled up. Sell it in small lots. Lest
you might not we'll understand our mean
ing. friendly reader, we will state here the
point in fact which we wish to make it is
to localize our loans and securities and
place them on homes and improvements for
the people, lessen the risk and lower the
rates of interest. The second reason why
competition does not do this work for us rs
suggested above is because we have no Sc
curities. Our security is such that men are
forced to charge high rates TO be able to
take the risks at all. Our chattel mortgage
law is a fraud on the very face of it, and if
il was real it would not stand the test in our
courts over our exemption laws. success
full merchant III San Antonio told the writer
only few days since that he had estimated
only five per cent. of his customers as be-
ing men from whom he could collect money
by law. What can we expect but big prof
its and high rates Of interest under such
circumstances Our exemption and home
stead laws are at least a hundred years too
early in our history. They are almost a
curse to this or any other new country
where capital is required to improve and de-
VelOD. MneTe UnDtFs NhteE
all these things are plentiful and the farmer
can make everything even pegs for nails TO
cover mis- house. This will answer for
while, but where men are forced to have
means to improve Il is a burden. To re-
move this law or modify II would be a spe-
eial favor 20 the people. II would unite
millions Of dollars and turn them loose on
u.s. II would bring money among us. II
would localize our securities and loans. II
would make them safe, and A. a natural con
sequence. lower the rates Of interest There
is no sense in making a man rich before be
can give simple security for hundred dol
lars. There is 10 use % htving homestead
laws till the people are able 70 have homes
and improve them. To do this takrs money.
To get money takes security and 50 the
logic goes around in q circls. Nov. reader,
don't get out Of temper over this til you
think about Il carefully. Facts are fats.
Tours, Nrra
Notice TO Those That Were Once