The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-06-05

When the bonds were issued (morc prop
erly called dCbeLtures) by such NOR gage
companies they should not bear more than
+ per cent annual Interest and should run
for tho period Of from five to twenty years.
The Endorsement of said financial commits
sIoner and tho attorney general upon said
bonds should show mat the security and
titles wero good and the bonds were se-
cured by said mort cages rs collateral This
would complete the dcbenture so that tie
STATE treasurer or the county commits ION
crs could buy 1t with Idle permanent schall
funds or other public or private funds could
tnke 1t. Tho mortgages executed by such
companies could be substituted by other
mortgages equally as gooi and In this way
any stakeholder could pay his mortgage by
permitting some cher borrower 10 take his
place or a dcbenturo could be taken up and
mortgages and stock cancelled in uropor-
tlon. Said mortgages should bear per
cent annual interest and the difference of 2
per cent between the interest borne hy the
mortgages and debentures could be used 10
create and maintain the surplus and sink
Ing fund so that within IL given time all
mortgages and debentures could be can
celed.
At first these dnbenture bonds could be
sold at per cent annual interest aud after
these securities are generally knnwp TO the
investing public they could be placed at 4
per cont annual interest.
There Is today at least 81 800 900 OF per-
mehent State and county school funds that
can not DO invested at per cent annual
interest because thcro Is no law authorizing
the Investment OF such funds in securities
that can he purchased In the onen mar
ket that will bear per cent annual in
tercst On May 81. 1885, there was Sa2i.-
2SS permanent State school funds uninvcst-
ca. On September /, 1897, there was cash
un!nvosted county permanent school funds
size. 5oy6 6, and these idle funds are rapidly
accommodating.
Why should this rot he invested In mort
cages supervised as we have suggested
and thereby permit the interest paid by our
farmers to remain In the State Of ToNasl
The laws OF several of the Eastern States
authorized their savings hanks, trust com
ranies and some other Institutions TO invest
their money In land mortgages of certain
Western and Central States and II the laws
here suggested are passed Eastern saw
'nss banks. insurance companies and many
other institutions with idle funds will be
authorized by tho laws OF the Eastern
states to invest their money in these Texas
debenture bonds.
S'''e "bNu'uAt sdittS 10 investors In
wnat makes money cheap and plentiful.
IN urging tho enactment OF these laws
the state OF Texas Is not requested Ia
h<une liability or enter field OMEN only
to private enterprise. We simply ask that
a similar control exercised now over muni
cipal bonds be also extended to protect onr
great agrfcultural and stock Interest ~
the state OF Texas can afford to SUPERVISE
county ana city bonds so that our counties
and towns are able to secure money nj less
than per cent annual interest As there no,
q greater reason why tho same favor
should he extended to save and protect
our agricultural resources The railroad
commission Is doing great work and
protects vast interest. but there Is M
greater reason for its existence than thar
Is Tor the enactment Of the laws here adj
vocatcd '' gu
Practically. the plan we here suggest n
been In force and successful operot,o, &,
sentimental Europe for more than a century
ana during all this period farmers IN
France. Germany and Russia have been
able to secure loans upon their farms al
from per cent to 1 per cent annual In
terest' This financial system has all
grown out OF a plan that was originally
sdopted In Germany in 1867. II was sux
sessed by a merchant OF Berlin named
Burtng, At that time Germany had been
osvassa&ed and exhausted by : ssvcn ycars'