The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-03-25

and the advtsability OF property |
for that purpose consists. In large meas |
urc. in the ability to transfer It readily
from one to another. Property which is
difficult to sell, though yielding reason
able revenue, Is not as valuable as prop
erty which Is more easily disposed OF hut |
which yields smaller revenue. Anything
which tends to prevent tho free disposi-
ton OF property depreciatcs It.
In Texas the foundation OF our wealth
Is real estate. We have not the bonds and
stocks which form 40 large a part of the
wealth OF the communities In tho older
States; therefore 1t Is incumbent upon us
to have laws. as they affect real estate
in a condition TO Increase as much as pos
sible the value Of our property, and GER
| tanly We should make every effort to pre-
| vent its depreciation by legislation.
| The great mass OF the people OF Texas
are people in moderate circumstances, their
asset being the soil they own. and any
! legislation which tends to diminish the
value OF this property is an injury not
only to each individual IN the community,
but To the people collectively
| The redemption bill allows property sold
at forced sale to be redeemed within two
years from the date of sale. This leaves
the title In allegiance for two years and
prevents transfer or sale Of the property,
except under conditions SO doubtful as to
prevent fair price being paid for the
property.
The bill allows not only the debtor to
redeem the property. hut any creditor OF
the debtor. and another creditor may re-
deem from the creditor second rtyiecmIng,
and SO on, 80 that the title to the prop
erty. for two years at least has no pcrma-
nent resting place. II we add to the two
years the time that may be consumed in
| the litigation. we may say that prac-
tically property can not be transferred
from three to five years. We are. there
fore. moving backward In our civilization
instead OF forward.
The bill does not allow the purchaser
the value OF tho improvements he may
make. II the land Is redeemed. but allows
an action for damages against him II he
does not keep up the improvements. II the
debtor remains in possession he IL not
liable for rent. but n the creditor
takes possession he Is liable TO
tho debtor. The creditor has 10
pay the taxes in order to preserve his Sc
curity and II the debtor redecms, he Is
not compelled to repay them.
An argument that is used and the only
argument we know OF in favor OF the law.
lis that II Will prevent lending money on real
estate and prevent Its sale except for cash,
The bill seeks indirectly to prevent any
one borrowing money in tho State Of Texas.
IL can not be doubted but that Will be the
effect OF the law, but It viii also prevent
the selling OF land ON deferred payments.
and it will prevent or at least greatly cur
tail the volume OF business of all kinds
that is done In this State. because as real
estate Is the basis Of all our credits aud
values. anything that renders the title to
1t hard to obtain and difficult to make per-
feet doprcciates the property Itself and
removes 1t from the market as basis OF
credit.
Tho banker. who lends money for three
months looks. as rule. to the real estate
owned by the borrower as the ultimate
source OF payment. in the event the hor-
rover does not pay voluntarily. How many
banks In tho country can walt for two
years for the money they loan and expect
to get back In three months? How many
people Will deposit money in bank when
they know that their money which the
! banker loans, may not be returned to the
banker for two years and the banker,
: therefore. Will not be able to pay it to
, them? Hoy many merchants can buy goods
as cheaply with this bill a law as they
, can now? How many people, who own
lands will sell their lands for small
cash payment, which is something 10 cs-
sential and 80 necessary to the welfare OF
the poor man struggling to obtain home
when the owner OF the land realizes that
II the purchaser falls to make his payments
) 1t may be two or three years before he can
! recover tho property?
{ What building association dare to lend
money to build homesteads. when II may
t be two years before such association can
get possession OF the property from the
D party buying? Building associations usual
ly require monthly payments, which, as q
. rule. do not exceed the rent which Ia
0 usually paid for comfortable home. and
t II this bin becomes law. a building asso.
D citation would not dare to continue It's
4 business because the purchaser from 1,
after paying his first months payment
Y could keep the property tied up for tive
', or three years.
0 II a poor man. who owns small farm
9 wishes to better his condition and obtair
. a larger farm and more comfortable house
aud sells the farm which he owns for thu
: purpose OF acquiring a better one, ant
1 sells II on time. as he usually does, HI
can have no certainty that the deferred
d payments will come to him in time I,
: make the payments on the new home tina
he buys.
n When a guardian lends the money OIL
I the income of which his ward depends fo'
Il maintenance and education, he takes tn,
a risk OF not being able to collect his inter
est for from two to four years. which tint
: the ward may spend In the poor house In
r stead Of school,
y 1t may be said that there Is no new
y money being loaned in Texas today. Al
}. the money that is now going into loan
d through mortgage companies goes In tn
shape OF rcadiustment OF old loans AM
reorganizing existing debts. There is no
body borrowing money. because bushes
:. is almost stagnant. II is a matter OF gen
= erai knowledge that many OF the larges
mortgage companies doing business In thi
= country have become iDsolvent and ar
20 winding up their business through re
" ceivers They are calling In their loans an
h the man who now wants money wants 4
10 as a rule. to pay Off an old debt which b
$. owes defunct mortgage company. 1t ca
= be safely said that over twenty OF the iarg
~ est mortgage companies doing business y
4. tho United States have become insoiven
Of and are In the hands OF receivers. Why ar
r. they insolyent? Because they own res
estate. It must be remembered that
- mortgage company Is borrower as we
=. as a lender. and the amount OF money
loans Is measured by the money that