Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-18
quently make money dearer instead of

quently make money dearer instead of
cheaper.
Al the Cincinnati convention in May one
speaker put it that they wanted TO make
their own money and to use it. When they
did use their own money before foreign
money flowed into Texas, the Texan farmer
paid from T. per cent TO IS per cent for ac-
commodation Within the last few years
the rate Of interest has de
clined TO per cent or 5 per
cent, and the cheap money which Texas
needs IS steadily becoming an actually
But the new alien law will etectual!y check
al outside Investment, and in time viii
drive foreign capital out of the state; for
10 one will lend money on land which he
cannot take il the loan is not paid At the
same time, domestic loan companies will
not take the place OF the foreign companies,
because it will be difficult for them TO know
that all their stockholders are citizens Of
the United States, and, under the clause
which we have quoted, Il company Is pro
hibited from acquiring title to real estate
if Z single member of il be An alien. a
Texas paper points out that the sum now
loaned ON land in that state is probably not
less that $4,000, 600 The money will
be called III as fast as the loans are
due, foI:S The mortgage companies will,
naturally, protect themselves. The secre-
t;lrY Of the Alliance Trust which has over
. iyfa recent interview with the representa-
hive of the Dundee Courier, that the trus-
Fad 400 or 800 loans in Texas, and that,
kvhile they were quite comfortable as to the
fand now held no more money would be
floaned III Texas under present circumstances
The same will come, no doubt, be pur
sued by the Texas land and mortgage COM
pany, the Texas land and cattle company
and the Nlatador land and cattle company,
all Of which have capitals of more than
$500. 600 besides the Scottish American
mortgage, the Scottish American invest
ment, and numerous other companies with
very large capitals, whose operations are
not restricted 10 Texas in particular Now,
when these companies begin 10 call in their
loans, where Will the debtors raise the mon
cy to pay them off! Either they Kin bo
lieeced by local usurers, who 3D.
disguised by foreign capit;3i having spoii,
their business, or they will lose their Iord
IN eiInef evehI ley stand to lose. and, so
SO Lar DIS can le seen, there will be no gain
Iol " ,-;r " except American capitalists,
loans. i'i
The secretary OF the Alliance TRUSS
which, by the way, is an important under
taking, with 92 600 capital, thinks the
law cannot be retrospective: but we do not
think this ut all certain, for the words OF
the important clause are, mo alien shall
own any interest" etc, and they are suffi-
Gent to cover previously acquired property
But, be this as it may, the Texan legiSla-
ture has done stupid thing in passing this
alien act, and thing which will react more
to its own injury than to that of the alien
1t is question whether the sO-called alien
land laws are not contrary TO the constitu-
ton of the United States, and. as such,
void. 1t has been held Eby the supreme
court OF the United States that EVERY
treaty made by the authority of the United
States Is superior to the laws and constitu-
ton OF any individual state. If the law of
a state Is contrary to a treaty it is void"
The very first treaty with England
having sanctioned the holding of land
by Englishmen in the states and
by Americans IN England, it would
fairly appear that those states which have
passed alien laws have acted ultra wires,
ana made laws contrary 10 treaty, such
avs being, therefore, void. Hitherto the |
matter has never been thoroughly tested, |
Tor the provisions of alien laws have been |
got over by legal methods. The new Texan |
aw IS, however, more stringent than those
hat have preceded it, and, as q consider |
IDLE amount of British capital is employed !
Il land and ranching companies in Texas it |
would be advisable to raise the question of |
Is validity, unless, as has already happened |
n Nebraska, the legislature come to their |
enses and repeal the enactment.-I London |
financial News, Of July %, 1891.