The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-10
THE REASON FOR 1T.
Correspondence Chicago Record.


Fort Worth. Texas. December 2s.-The
view seems to be generally entertained in |
the financial circles OF tho country that
the free silver movement was sporadic |
agitation based on nothing more substan-
tial than populist oratory. 1t would be |
well for the men who hold the purse |
strings OF the country to get rid OF this de-
fusion and come speedily to an UNDER |
standing Of the origin and animus of the
movement that found expression in the
Chicago platform. That did not come
party who since the war have never taken
u firm position on one live issue. National
in its reach to which they were not reluct-
antly driven by the masses of their party.
In Texas they OVERRIDE the boys In the
trenches by tactical skill on this very is
sue in making the State platform of 1894.
and there is little doubt that they would
have repeated that performance in 1896 but
for numerous and unmistakable signs that
II would have been a hazardous expert
ment
The Texas demand for free silver came
from the people. not from officeholders or
from party leaders. and 1t is directly trace
able to economic conditions. Its principal
II not its sole cause was the lack OF facli-
ties to make exchanges. 1t is not easy for
those who live in the trade centers of the
lions in sections remote from the treasure
stores of capital. To man just risen from
feast it appears absurd that anybody
should starve. The bankers OF New Eng
land look upon the Western cry for more
money as little less than idiotic and it u
not strange that they should do So
Massachusetts and Texas are about equal
in population One has an area of S3l5
square miles and the other an area of 265.-
$50 square miles. The volume of business
in Massachusetts is not more than so per
cent greater than in Texas. The aggregate
capital surplus. undivided profits and in
dividual deposits of all banks and loan and
trust companies in Massachusetts. as shown
by the report of the comptroller of the cur
rency for 1895. was $S77 HOOPS. or 1928 %
per capita, against S6S3l4, sol. or 1924 per
capita. in Texas. Measured by banking re-
sources. the dollar must do eight times the
work in Texas that it performs in Massa-
chusetts and travel over an area thirty-two
times as great in doing il.
The loans and discounts OF all financial
institutions in Massachusetts were $685.
0O6.sSi. against S57 6l5, S63 in Texas. Meas
ured by banking accommodations, the dol
lar in Texas must do seven and one third
times the service rendered by the dollar in
Massachusetts.
The actual cash held in the vaults OF the
| financial institutions OF Massachusetts was
$50 POS. 1872 against s6.245,o6S held in Texas.
| Equal facilities with Massachusetts, for the
| transaction OF business would have given
Texas cash resources o. s24lsS, 755 in banks
instead of little more than Sc. 900, 900. The
bills payable and redlscounted paper OF the
Texas banks, held In most instances outside
OF the State, amounted to s6,G6S ,o46. or a
sum larger than their cash reserves in i'm
mediate possession.
| The insuffciency OF these resources In
cash and credits for the transaction of the
business OF Texas Is apparent at a glance
Tho entire volume of the business of the
State, on conservative estimate, is 81 $780,
10000 annually. The bank clearngs of the
five leading cities of tho State during 1896
exceeded sI50,0o0 900. The agricultural and
live stock exports of the State amount an
nually to $165 900, and the annual out
put OF Its manufactures is over 500 000,-
600. The per capita production of raw ma
terial in Texas, it is safe to assert, is larger
than in any other State In the Union. The
value Of the annual products of farm, range
factory, minc and forest OF Texas is be-
tween $3.50 and SITS for every man. woman
and child in the State. This record chal-
longes comparison with those OF the oldes
and wealthiest communities of the world
where nature has been reinforced with al
OF the appliances of science and invention
and 1t is unequaled by any agricultural
State or community in the world.
To recapitulate: For the maintenance o
tho trade and industry of Texas there are
banking resources, including capital sur
plus and deposits, of S6S 31I, SOL. or $279
per capita; loans and discounts Of s57,6l5,
S63, and a cash reserve in bank Of $s,245,.
96S.
The meagerness of these resources will
appear more clearly when 1t is stated tha
the city OF Pittsburg. Pa. and tho Stat
of Texas contain about the same amount o
actual cash Tho bank clearauces of Pitts
burg for eleven mouths ending with No
vember, 1885, IA reported by Bradstreet' S
we're $67S .2s2 OBS and tho clearings o
Houston, Galveston, Dallas, Fort Wortl
and Waco. the five cities In Texas witt
clearing houses, were for the same perio'
s735, 40l ,10S.
While the dollar, both material and con
fidence, ia required to do eight times thu
service in Texas that 1t performs in Massa
} chusetts, the conditions in Texas deman,
twice as many dollars for an equal volum,
OF business as in Massachusetts. There arr
more than 5000 postoffices in this State
where more or less business is transacted
and 246 counties--more counties than Their
are banks of all kinds. The distance be
! tween the terminal points OF importan
traffic call for larger financial base 70
tho business of the State than would b
necessary In more compact community.
, The banking resources OF Texas inclul
: virtually all OF its assets. There is n
! money worth taking into account in tn
: pockets OF the people, except for period
+ three months in the fail and winter. 4
any other time 1t is no unusual thing io
! a farmer worth $4,000 to be unable I
scrspe up at his home the price of news
, PAPER subscription. One OF the regular DC
mands by solvent merchants upon IN
D banks is for money to pay freight ohars,
g upon goods in the summer months and
t. liz. s.a1