The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-06-05
TO BENEFIT THE FARMERS
important Legislation that Seems q
Necessity 10 Texas.
SUPPLY MONEY AT LOW INTEREST.
How the Agricultural and Pastoral
Resources Are being Exhausted
and a Remedy Suggested.
40 the Democrats Of Texas

ed In securing the passage OF the following
resolution by the democratic State conven-
tion TO be held An August at Galveston.
viz:
''We favor the enactment OF laws that
and regular supply OF money at low rate
Of interest and that will at the same time
afford security equal to State and county
bonds for the regular and secure invest
ment OF our State and county permanent
school funds"
In 1854 loan companies commenced TO
make loans In Texas on farms and ranches.
AT that time sheep and cattle commanded
q good price and pasture lands graded. In
a greater part Of the State, even higher
than agricultural lands. Gradually sneco
and cattle declined In value and as a re-
suit grazing lands afforded less revenue ani
became cheaper. whilst agricultural lands
steadily advanced in value. Until 1894 the
price OF farm products were generally re-
garded as aifording sale ana permanent
income on the prize generally obtained for
agricultural lands. between 1894 and 1894
IL has been estimated that about S2JJ O0U.~
600 was loaned upon Texas farms and
ranches. or this large sum in 1891 1t was
estimated that $50, V00,o 600 was held in Great
Britain, mainly by British ana scottish
mortgage companies, and about $70.0OO,00o
wero held outside OF Texas. most of which
had been negotiated by American mort
gage companies. There is now held In
other States and foreign countries about
500, 900 900 OF mortgages on Texas lands.
When these loans were made almost With
out exception, tho securities aiiorued an
income greater than the interest on tho
mortgages given OWING to Tho fall In
prices of sheep aud cattle the revenue In
many cases first became less than the In
terest OF loans on grazing lands, and In 1884
and 1897, owing 10 the low prices OF prod
ucts, for the first time perhaps In the his
tory OF the State, agricultural lands IN
some cases failed 10 afford n revenue equal
TO the interest on mortgages neld against
them. These estimates are made on the
belief that borrowers on both agricultural
and grazing lands were and arc paying an
average OF at least 10 per cent annual In
terest.
With this continued high rate OF interest
these variations OF prices and the effects OF
other uncomfortable conditions have
worked and will IN the future result IN the
irroparable injury and losses to our farm
ors and stock rnisers and the general pub
lie. For ten years 10 per cent on 800 000.-
600 has annually passed beyond the limits
amounted TO very much more than $780,
900. 600, aud after these fearful drafts on
our resources our farmers and stock rails
era still owe the original principal of $780,
0DO, 900, and unless they can get relic.
through q lower rate OF interest there can
10 little hope OF ever paying the principal
without bankruptcy TO qho original borrow
ers. Therefore II Is necessary that some
security OF a stable Value and unquestioned
charartnr. equal m "a gtufo ny a.
shall be provided and placed under the SD
pcrytsion OF the State OF Texas. 10 that 1t
can DO readily fioNtcd In the markets OF the
world at from per cent to per cent an
nuai interest. What shall this be? Ia
there anything better than mortgage on a
Texas farm to the oxteut OF 50 per cent os
Its actual value? II not then the question
arises how can farm mortgage be made
equal TO and or the same unqllestonable
value, IN tho estimation of the world. as
n TeXas state or cGtrnty bond? With tho
view OF attaining this end we would ask tho
n'Nt legislature 10 enact the following
amendment to our corporation laws there
by authorizing tho farmers OF Texas TO bor-
row money, to-wit:
- Amendment to the Revised tSatutes OF
Texas TO be entitled: Subdivision "a or A.
ticlo SAP, Chapter ., Under Title XX1.Sa
for the purpose OF borrowing money upon
reai estate. The number OF persons incor-
pormting FOR such purpose shall In no in
stance bo less than ten. The holders NJ nj,
capital stock shall be liable for double IT'S
race value. Any person owning and holding
more than 10000 OF such stock shall be Ii
able for all debts OF s,fch corporation Ma
company shall incorporate for ,his n,,rnosa
with an authorized capital stock -, ,nnr,,
IMAM Soou 900 nor less than $50 600 which
snail be fully paid up in mortgages on rn,,
estate WITHIN five years from tho dote M
tho filing OF the charter. And NO ccrt,fi'
cate OF stock shall issue until such mort
cages are approved by the financial cor'.
missioners OF Texas and filed In the vauit
Vi ."c state treasurer OF Texas. whereupon
SAID commissioners shall sign oon,,n,
stock equal In amount to the face q, ~
mortHise 50 filed and authorize tho issm.
snce OF debenturcs to the extent y, ~.
capital stock so issued. Provided that nv
oeoenturc shall issue until a suitah,e sI,i,
ing fund Is provided for their pavment T.,
twenty years; and that no company orr,n ="
1zed Tor this purpose shalt make loans ~,
IN. I'M estate IN moro than three counties in
this State and that all Companies cr,,n,v ~
under this law shall he subiec, IN AMI 90,
usr the control Of the financial commits
sioners OF Texas.
AZ the time this law Is enacted we wop,5
also request the legislature to create nav
state department equal In dignity and cbor-
acter to the supreme court or the railroad
commission. TO be styled the "fnanci,I
commission" Of Texas. which department
should be vested with full power and au.
thority TO regulate and control all such cor
Iporations as may be organized under this
CAV. This control should be similar m
{nat exercised by the United States over
National banks. or that exercised by tho
nst>rn- States over savings banks ana
over institutions that are authorized bv
.as 70 invest trust funds in mortgages upon
AZ companies organized under this law
snolnd be required to accumulate and main.
t4in surplus equal to 10 per cent OF Tho
sotai amount OF dehentures outstand,ng
rms surplus and the sinking fund should
oe invited In these home made" dehen-
lures oepther companies and deposited with
tne ets1e treasurer No action Of the AZ
roctors II these companies should be final
gnnh eppepved by the financial comm,s'
slonera. No stock should be tranxfarrsd
e1cept up9 approval Of the said commits
slonerM IN stockholders Of Commute
crssnised uAder said law being ilable 10,
ootgae the amount Of their stock shorsd
&c directly Interested in seeing that nv
mortxass VA executed in an amount