The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-10

ttTldl hsSiStuHCt ifUIl the OutSluC.
Texas has never had this is conclusiyeiy
proved by the fact that II IL virtually FREQ
Of debt. Considered as a business enter
prise, IL is the wealthiest corporation In
the world. measuring financial strength by
the proportion OF assets 10 liabilities
The assessed valuation Of all property In
the State on January /. 1895, was $500
56a. Custom makes 60 per cent OF the mar
ket value of property the basis OF asscss-
meat. while ii is frequently rendered as
low az % per cent. Railroad property was
assessed at S7o,664 .S31. Leaving this out
OF consideration. ON the assumption that It
corded Indebtedness against It, a conscrva-
tive estimate OF the true value of al, pri-
vate property In the State would rate 1t at |
81 800 10000 The aggregate Of all State, |
county and municipal Indebtedness OF Texas |
in 1890 was s2o,172,o63 OF this, virtually |
all OF the State debt. and nearly all OF the |
county debts. amounting TO about one-h half
of tho whole, are owned by the permanent
school fund of the State. and the interest
on them serves 10 reduce the tax rate for
public school purposes. The total of all
public Indebtedness, State, county and mu-
nicipal, does not now exceed sg5.O0O 600.
The mortgages on Texas realty in 1890
creased since that time and now stands at
about SOS. 900 900. The recorded mortgages
on personal property amount TO about S2o.-
900 900. Altogether the recorded indebted
ness Of Texas, public aud private. including
every dollar owed by State, county NUM-
cipality and individual evidenced by re-
corded ACKNOWLEDGEMENTS tho obliga-
lions of railroad companios-is safely with
in $l25 900. 900. Against this there are as
sets amounting to 81 500 100000, or In the
ratio OF IL to ]. Is there another State or
community in the world. not excepting
those whose wealth represents the accumu-
lations of centuries than can make an equal
showing?
It may excite surprise that so much ac-
cumulated wealth and such profitable pro-
ducton should go hand In hand with such
limited accumulation OF cash reserve. This
phenomenon OF rapid agricultural develop
ment is easily explained. The wealth OF
the State is In the soil and Its appurtcn-
ancas. The extraordinary percentage OF
wealth increase was the result OF the con-
| centration OF energy and resource upon the
! enlargement OF the agricultural area and
| uDOn the DtIttTIutUL Oh ldVUllIb lhtbbVAss
The building OF houses and fences. the
purchase of machinery and the preparation
| OF virgin soil for cultivation during the
last twenty years have exhausted every
dollar of the accumulations Of the State.
| That these energies and investments
have not been misspent is shown III the ex-
hibits made above. 1t is further demon
| strated in n fact OF great Significance which
ft.ts tsafh Il
| extended invce tlgation. Within the last
| three years the land mortgage companies
operating in Texas have withdrawn from
| the State a sum approximating sZo.ooo'VVo
which has been subtracted from the OPP
| Grating capital Of the State and especially
| OF the agricultural interest Tbs came
| during period OF low prices. when other
States were finding it impossible to meet
| interest payments. These withdrawal:
| were not caused by Texas defaults. but
were. as a rule, due to the embarrassment
| Of companies that overvalued lands In max
| ing loans in other States. an evil from
| which Texas has been exempt save IN rev
OF the larger towns
The astonishing fact is thus disclosed
that the farmers OF Texas have. paid upor
vendors lien notes in the last three years
of extreme depression, out OF moneys ac
| cumuated from the soil. sum equal t
nearly four times the amount Of cash re-
| SSTNe now utiu III INC Nou'es w az ~
financial institutions in the State.
i Statistics Of land mortgage companies
recently compiled show that of the Central
Southern and Western States tho only on'
that is more prompt than is Texas In max
ing payments is Iowa.
The purpose OF this review is to show tn
economic origin of the impulse that swep
the people OF Texas into the free coinage
movement and not to suggest remedy fol
the evils OF which they complain 1t Il
easy to perceive that II the material de-
velopment of the State should be brough
to an abrupt pause and the people SHOULD
hereafter devote all OF their energies to the
accumulation of capital instead OF the nc.
| cumulation and Improvement OF realty
they will speedily solve the financial prob
lem for themselves.
1t Is questionable. however. whether Il
would be desirable from a New England
point OF view for the solution to come IL
this way. The accumulation Of capital IL
Texas will as certainly produce an era o
manufacturing development here. parallel
ing the remarkable agricultural progress
of the State. as the rivers run 10 the sea
And when Texas begins to manufacture ir
earnest assisted by resources and advan
tages of which there is but little Outsd
knowledge, the problem OF japanese com
petition, so much discussed in EASTER
manufacturing circles, will fade into for
gotten dream in the face OF the actual re
suit OF Texas competition.
1t may be asserted with positiveness tina
New England could no more compete VIII
Texas in the manufacture OF staple fab
rics. II Texas we're fairly launched In tina
business, than 1t now completes with Texa
in the production OF beef and cotton.
a significant fact Is that the demand 70
farm loans is rapidly falling off and in tn
older agricultural communities has almos
ceased. Many loan agencies have bee
, discontinued during the last two years he
, cause farmers In well developed communi
ties could not be persuaded to place incum
: brances on their farms. This means tina
they are preparing to go into the bushes
of accommodating end ioaning money instea
. of borrowing themselves TO buy more Ian
to raise more corn to feed more stock.
: What was once the bank Of largest capi
. tai In Texas Is now arranging 20 reduce 1t
i capital one-half. after having cut It dow
t,yn It's laah