The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1897-02-03
LIVE QUESTIONS.
A Series Of Articles Contributed by
Advanced Thinkers.
WESTERN LAND SPECULATION AND
THE RECENT CRISIS.

WESTERN LAND SPECULATION AND
THE RECENT CRISIS.
The intelligent student Of economics
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 carly in life, and his opinions
were waited from side to side by the
theories set forth in the various works
he chanced to read, like ship without
a rudder upon the trackless ocean in the
midst Of storm, until be read that
great philosophic work, Progress and
Poverty" when he located, as it were,
the north star of political economy
that is, that monopo]ization 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 IL its track.
Starting with this theory as correct
one the writer wishes to show that the
recent crisis was greatly magnided by a
species of land speculation, peculiar to
the west, which was hitherto unknown.
Since civilization began its march across
this trackless and cnezplored continent,
"to go west and grow up with the coun-
try has been the universal ambition Of
the enterprising young men Ct cur coun-
try; for just beyond the borders of set
Element the opportunity for getting
cheap land was open to all, which, ez
perience had taueht, was as sure to IL
crease in value as CID age follows youth.
This grand wave CT humanity nlo7ed
westward with al the certainty and
regularity OF the rising CT tie tides, and
so sure was it that land would grow in
price as population increased that tie
value Of a given tract might be figured
with almost mathematical certainty
any number Of years in tie future. This
was moro apparent in the prairie than
in the states covered with heavy
growth of tiEher 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-
manity, and with it came the land spec
ulator and boomer. Speculation wsss 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 it's 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 loaning money to settlers and
taking security on these new lands, and
was more productive of evil than the
former. Companies were organized
which 1oarcd money direct to the bor-
rover at various rates of interest, rang
ing all the way from 10 to is per cent.
The face of the loans was made to draw
6 or 7 per cent and sent eGst and sold as
farm mortgage. the companies guaran-
teeing its payment. TIE extra inter
est above 6 or Z per cent was for the
full time deducted from the amount the
borrowers received, or a 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 lard.
As long as these excessive investments
were made in good soil only periodical
stagnations resulted, and the investor
would realize sooner CT later, as popula-
tion increased. But just when the specu-
1a..;-e cci:-::t~..-as ct its zenith. when this