The herald., 1895-04-13
A CONSTITUTIONAL MISTAKE

A CONSTITUTIONAL MISTAKE
| The evil of thoughtless popular action
regarding subjects of moment to the
state, is now manifestng itself in the re-
| suits following the adoption of the consti.
tutional amendment abolishing the righ,
| in aliens to own real property in Califor-
mia. This amendment was apparently in.
tended to prevent the passing of toe
much land into the hands of foreigners.
1t has also prevented something else, and
that is the lending of foreign money here.
But the latter effect was not just exactly
the kind the people had in view. There
is small doubt but the mass of voters
decided upjn this act with practically no
consideration. There is an undercurrent
of prejudice against the acquisition of
land by non-residents, and voting on this
amendment afforded an opportunity to
express that feeling. although upon SER
lous thought it would seem immaterial
what the nationality or residence of the
land owner is. He cannot take the earth
away with him and escape the burden of
taxation. Private property in land is
right or wrong; there is no resting
ground between. If it is right. the
nationality, creed or abiding place of
man should not enter into consideration
in the holding of land. any more than
they do in the ownership of personal
property. But the practical outcome of
the adoption is what is going to interest
Californians Immediately. For the last
twenty years large sums Of money from
England and Europe have been pouring
into California for investment, in mort
cages and bonds having lien on realty,
and in the stock of land and water COM
panies. The high rates of interest and
large dividends paid here readily at
tracted money that at home was glad to
earn two to four per cent per annum.
Annually the amounts have been growing
larger, and as the development of the
state began to give stability to values, an
unlimited quantity was assured for the
future. But the little constitutional
diversion of the people has checked the
stream of capital that was coursing so
pleasantly from the overhowing reservoirs
Of thesold world. Foreigners arc like our
own people, they do not wish to invest in
securities based on real property W ell
laws have made ownership OF the latter
void. And the upshot of the mat
ter is that California borrowers are at
the mercy of the home lender.
The latter is protected as it were.
The introduction of money from abroad
has kept rates of interest from ten to
twenty-five per cent less than non-com-
pctitive field would have fixed them.
English. French and German capital
has largely entered into this competition.
vored by the first named class, and
their investments in various forms of Sc
curity south of Tehachep ran into sew
eral millions. This matter OF the rate of
interest is one OF mighty consequence to
the people OF new and growing state
like this. We are in the period of de-
velopment and construction. and we need
wealth to make more wealth with. We
are luxuriating in the acreage, the eli
mate and the possibilities; the people in
the east and abroad have the capital that
the thrift and industry of centuries have
accumulated. We need it fully as much
as they need our interest. 1t is the part
of good sound sense that we do nothing
to discourage the movement our way of
their pounds francs and thalers, and that
we undo that which VIC have DONE A
campaign for the repeal of that "protec-
tive amendment at the next election
should be waged from now till then.