The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-10-01
TEXAS HELPING HER OWN
CITIZENS.

The communication tnlS noTulHs
from the Hon. w. c. Walsh is timely
In these days of terrible money
stringency all over Texas, it is well
for us to pause and cast about us Tor
solution of the inquiry-is there nc
way out of this slough OF monetary
despond? For years, indeed during
her history as a state, Texas has had
one supreme banking capital-lands.
But through the operation Of the alien
land law this capital has been rendered
worth less than ten cents on the
dollar. For national banks cannot
touch such security and great mort
gage companies with their
millions, their ineXhaustible
surplus, have been driven
from the state. Our land is so much
dead capital on our hands, and the
money we have put into it's improve
ment but merely complexities matters,
making us that much worse off. Tex
as must then look to new industries,
to new business enterprises, through
which to raise tho wind to float her
own to her harbor Of greatness.
What shall this be? The answer
would seem to be along the line of
Mr.. Walsh's observation-disclosures
ing. But how get the money to en-
bark in manufacturing 1t cannot be
secured from the rich foreign source
that till now has offered us cheap
supply of money and has cut down
the interest rate here at home. Then
whence shall it come? Mr.. Walsh
for relief turns to the state, to the
school treasury. Here he proposes a
double relief, relief to the schools, in
that he would have thier funds find
profitable investment, and relief to
the people by turning loose among
them money to be invested in money
coming business. At present there is
really no investment for the perma-
nent school fund. True the constitu-
ton offers such fund three outlets of
investment, in United States, Texas
and county bonds. But as to the first
two of these it is known there is no
market and no money can be placed
in either. TO "a less degree this is also
true of county bonds; for money is
being refunded into the state treasury
more rapidly by prosperous counties
than it is being taken out by new and
needy counties. This defect has
found some expression in the
constitutional amendment that has
just been adopted, DETECTING
certain per cent of the permanent
fund into the available fund. The
permanent fund thus absolutely need
ing field for investment, that part of
Mr.. Walsh's plan is all right, but
what of the character of investment
he proposes?
The last legislature defeated prop
osition to lend this fund to municipal
tiles as it also did to lend it to rail
roads. The railroad proposition was
impracticable as it limited the loan
to $4,000 mile on first mortgage bonds,
and no railroad would consent to such
a small first mortgage bond. But it lis
not clear why municipalities were
also denied access to this fund, when
the loans could have been so restricted
70 Il pttnl ,,,1nini ~ IitinC thor
oughly responsible for them.
AS to loaning this money for
the purpose of encouragement
of manufactures, many questions
might arise. The first cry will be
heard, that the State should not |
NEEDLE in private or corporate affairs.
But the State now does do this very
thing, besides it must be remembered
that the same reasoning in such case
does not apply to the State as to the
Federal government. 1t is the States
duty, just as it is prohibited to the
United States, TO look into the well
being Of her citizens, and to pass
such direct laws as will protect such
citizens in their rights and encourage
them in their business endeavors.
Just as the Federal government regu-
lates its monetary affairs so as to pro-
duce the best results as between the
different states and between the
United States and foreign powers so
the individual State should regulate
Its monetary affairs to produce the
best results between it's citizens and
between them and it. Upon what
other theory is assistance rendered by
the state to its counties, are tax eX-
emptions allowed, is a public school
system established or state univer-
sity endowed? If then this loaning of
state money to assist in the establish
ment of manufactures broadcast
throughout the state, work so es-
sential and so productive of universal
10 ,I,, NIL 10, Dc