The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-08-20

4
to use it. When they did use their
own money, before foreign capital
| flowed into Texas, the Texan farmer
paid from II per cent to Is per cent
| for accommodation Within the last
few years the rate of interest has de-
clined to per cent or per cent, and
| the cheap money which Texas needs
! is steadily becoming an actually.
But the new alien law will effectually
check all outside investment, and in
/ time will drive all foreign capital out
of Texas; for no one will lend money on
land which he cannot take if the loan
be not paid. At the same time, do
nestle loan companies will not take
/ the place of the foreign companies, be-
cause 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, company is prohibited from
acquiring title to real estate if single
member of it be an alien. \ Texas
paper points out that the sum now
loaned on land in that state is proba-
bly, not less than $50 100000. This
money will be called in as fast as the
loans are due, for the mortgage COM
panies will, naturally, protect them
selves. The secretary Of the Alliance
Trust, which has over Gl,000,000 on
mortgage in America, stated, in a
recent interview with the representa-
tive of the Dundee Courier, that the
Trust had 400 or 500 loans in Texas,
and that, while they were quite COM
| Portable as to the land now held, no
more money would be lent in Texas
under pre- sent circumstances. The same
course will, no doubt, be pursued by
the Texas Land and Mortgage COM
pany, the Texas Land and Cattle COM
pany and the Matador Land and Cat
| tie company, all of which have capitals
of more than 100000, besides the
Scottish-American Mortgage, the
ScOttish-American Investment, and
numerous other companies with very
! large capitals, whose operations are
not restricted to Texas in particular.
Now, when these companies begin to
call in their loans, where will the
debtors raise the money to pay them
off? Either they will be fieeced by
local usurers, who are probably dis
gusted by foreign capital having spoilt
their business, or they will lose their
land. In either event they stand
to LOSE, and so far as can be seen, there
will be no gain for anyone except
American capitalists, who will be able
to raise their rates for loans.
The secretary of the Alliance Trust.
which, by the way, is an important
undertaking, with 92,000,000 capital,
thinks the law can not be retrospect
i've: but we do not think this at all
certain, for the words of the important
clause are, mo alien shall own any in
terest,n ETC., and they are sufficient to
cover previously acquired property.
But, be this as it may, the Texas Leg
islature has done stupid thing in
passing this Alien Act. and thing
which will react more to its own in
jury than to that of the alien. 1t is a
question whether the so-called alien
land laws are not contrary to the con-
stitution of the United States, and. as
such, void. 1t has been held by the
Supreme Court of the United States
that "every treaty made by the au-
thority of the United States is SUI
perior to the laws and the 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 ~
Americans in England, it would fairly
appear that those states which have
passed alien land laws have acted
ultra wires, and made laws contrary
to treaty, such laws being, therefore,
void. Hitherto the matter has never
been thoroughly tested, for the pro-
visions of alien laws have been got
over by legal methods. The new
Texan law is, however, more strin-
gent than those that have preceded it.
and, as a considerable amount of
British capital is employed in land
and ranching companies in Texas, it
would be advisable to raise the ques-
ton Of its validity, unless, as has
already happened in Nebraska, the
legislature come to their senses and
repeal the enactment.-FromL London
Financial News of July %, 1891.