The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-27
PREFERRED CREDITOR LAW.
Its BENEFIT to the Honest Country
Mcrchnnt-Seeds No Repeal.
Dag

Its benefit to the Honest Country
! observation-disclosures No Repeal.
To the Editor of The Post.
| Tho constitution of the State of Texas
| prohibits the organization Of stock COM
panies to do banking business, and Ma
tonal banks can not organize with less
| than $4,000 capital consequently small
towns arc not very well supplied with
banks.
| There Is no country where civilization
exists that needs banks in villages az bad
as Texas. Unless the small town Las a
| bank the cotton buyer Will not locate. 1t
is then that the interior MERCHANTS troubles
begin and the farmer gets less for his cot
ton, for 1t requires capital to move con-
ton crop. and the country merchant who
undertakes 1t soon discovers the fact.
Inasmuch as the great State of Texas
| authorizes stock companies to organize to
do a retail business, that will by shrowd
| business methods crush competition and
| continuously keep the small merchants
| failing. and at the same time does not
| supply legislation that will encourage small
| banks in villages. l am opposed to the re-
| peal of the preferred creditor law. The
| repeal of this law today would cause a
| that would far surpass all its former rec
| ord.
| One of the large corporations in the
| wholesale shoe business in st. Louis in
| struccd its agent while here this week
| soliciting business as follows:
| BE careful in the selection of customers.
| Ii the preferred creditoy law is repealed
| many honest merchants who have no inten-
| ton whatever of failure will be forced to
| assign"
| While these non resident corporations
| demand that this dishonest law must be
| repealed they confess that It will be dis
| astrous to many small merchants.
| The prisoner in his cell has the consola-
| ton of knowing that there is one class Of
| humanity that have greater mental troubles
| than he. 1t is tho Texas retail merchants
who undertake to furnish half county $
supplies secured by mortgages on second
hand banjos fddles, plows. log chains, one
| eyed horses. knock kneed mules and "A crop
| that is merely vision at the date of writ
| ing. with no backing save tho preferred
| creditor law. Many times just $500 dollars
| for two weeks will save him from failure
| By using ii judiclously in quoting the nom
resident creditors, as he can always get the
| Texas jobber and banker to walt; but when
| the law is repealed who will let him have
| the $500 without security? Is there men,
| Der CT the assembly or an official at AUS
| tin who would make such n loan?
| 1t will not hurt the banker or local job
| Der, but the retail merchants and farmers,
| who are dependent upon him for supplies
to make their crops. will be in distress
| Modify the law to make these mer-
! chants who have failed and preferred their
| sisters and their cousins and their aunts
| furnish proof of the claims.
| The Texas bankers are an exception to
the rule and their magnaminty has been
| tested since 1898. They have loaned, car
ried, extended and renewed and saved the
| Texas merchant from disaster while the
presidents of foreign corporations, who live
| In elegant mansions owned by their wives
end incorporate their business to shun re-
| sponsibility in case of failure, have COM
| rlained of the dishonest laws of Texas. but
continue TO solicit its trade.
j. NJ. Pagan.