The Maryville times. (Maryville, Tenn.) 1884-1944, 1897-01-16
LIVE QUESTIONS.
A Series OF Articles Contributed by
Advanced Thinkers.
WESTERN LAND SPECULATION AND
THE RECENT CRISIS.

Inc lnt6lllB6DJ STUDENT OF economies
cannot escape the conclusion that one
great fundamental or primary cause
must bring the periodical financial de-
preston with such unvarying regulari-
ty, and to find it should be his highest
ambition.
The writer started in as a student
upon the great troubled sea of political
economy early in life, and his opinions
were waited from side to side by the
theories set forth in the various works
he CHANGED to read, like a ship without
rudder upon the trackless ocean in the
midst Of storm, until he read that
great philosophic work, Progress and
Poverty" when he located, as it were,
the north star of political economy
that is, that monopolization of and
speculation in natural opportunities or
land is the bane of human progress and
the direct cause Of the periodical crises
which have SO often swept over the
country like some awful destructive
plague, leaving widespread ruin, pain
and starvation in its track.
Starting with this theory as correct
one the writer wishes to show that the
recent crisis was greatly magnified by a
species of land speculation, peculiar to
the west, which was hitherto unknown
Since civilization began its march across
this trackless and unexplored continent,
to go west and grow up with the coun-
try" has been the universal ambition of
the enterprising young men of our coun-
try; for just beyond the borders of set
Element the opportunity for getting
cheap land was open to all, which, ex-
perience had taught, was as sure to in
crease in value as old age follows youth
This grand wave of humanity moved
westward with all the certainty and
regularity of the rising of the tides, and
SO sure was it that land would grow in
price as population increased that the
value of given tract might be figured
with almost mathematical certainty
any number of years in the future. This
was moro apparent in the prairie than
in the states covered with a heavy
growth of timber. So as emigration
emerged from this forest and the Won
derful richness Of the western prairies
was discovered from every state and
: country came tremendous tide of hu-
mainly, and with it came the land spec
ulator and boomer. Speculation was car
ried on in two ways One was buying and
selling land far in excess of its real
value and relying upon the growth of
population for its increase. This was
most conspicuous in town site booming
where whole townships were plated and
sent east and sold at high prices, when,
in fact, the land was valueless The
other was ioaning money to settlers and
taking security on these new lands, and
was more productive Of evil than the
former. Companies were organized
which loaned money direct to the Dor
rover at various rates of interest, rang
ing all the way from 10 to 1S per cent.
The face Of the loans was made to draw
6 or per cent and sent east and sold as
farm mortgage, the companies guaran-
teeing its payment, The extra inter
est above 6 or 7 per cent was for the
full time deducted from the amount the
borrowers received, or q second mort,
gage given to secure the same, and was
held by the company. This became such
profitable business that companies were
to be found in almost every town on or
near the border and their agents swarm
ed like bees in every community from
the British possessions to Mexico, and
the competition for loans was SO sharp
that they were everywhere made far
above the value of the land.
As long as these excessive investments
were made in good soil only periodical
stagnations resulted, and the investor
would realize sooner or later, as popula-
ton increased. But just when the specu-
lative spirit was at its zenith, when this
mightywave of emigration began spread
ing out upon that great plain which lies
between the ninety fifth meridian and
the Rockies, hitherto and unknown
difficulty was oncountered-thc arid and
semiarid regions were entered. Old
Dame Nature had called a halt. Year
after year the tiller of the soil saw his
crops wither and grow brown under the
burning suns and scorching winds of
the plains until, unable to longer pay
his interest and provide for his family,
he abandoned his land and the awful
retreat began-a silent retreat in time
of peace extending all along the frontier,
which for widespread ruin, pain, misery
and starvation has no equal in the his
tory Of the world.
Cities were reduced tovillages, towns
deserted, and ono may now travel for
days across these prairies, where once
were families on every quarter section,
and see nothing left indicating civiliza.
tion-except along the streams-but de.
serted houses, tumble down fences,
while the coyote is found in his old
haunts and the prairie dog yips and
frisks about as if rejoicing at the desc
lation that hangs like pail over the
deserted plains.
When the borrower ceased to pay in
terest, the loan companies advanced il
until forced TO assign. Then the eastern
holder found he was the possessor O.
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