The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-10
HOUSTON, WEDNESDAY, MAY o, 1sDD
TEN PAGES TODAY.
TEXAS HoAnpup CAPITAL.

When The Post referred few DAYS
since to the high rate OF interest in this
state and contrasted that rate with the low
interest In other sections of the country.
the thoughtless, or those unacquainted
with conditions in Texas, might have in
ferred that there was a scarcity OF money
in the State and that interest ruled high
because Of that fact
There would be some excuse for 10 or
per cent money II that were the case.
But it happens that the bank statements
In Texas show immense deposits The
trouble IS not scarcity OF the medium
OF exchange, but rather the inactivity, the
boarding Of money, Millions OF dollars
are kept idle in bank vaults in Texas be-
cause the depositors still prefer to wrap
their talents In a napkin IL they can not
obtain the cid rates Of interest to which
they have been so long accustomed They
do not seem to have learned yet that the
charges for the use of money have gone
down in this country and that II is possible
only to loan a comparatively small amount
and in small sums at a high price They
doubtless wonder why It is that they can
not put their capital out as formerly and
double It every few years!
This species of ignorance does not ex-
list in other portions of the South. Men
of means in Georgia, Alabama. and the
Carollnas have ceased to wait for high in
terest on loaned money and ane either let
ting those have 1t at low rates who are
ready and anxious to put It into enter
prises for the development OF their seq
ton, or are themselves investing 1t in in
dustrial undertakings and reapina. as re-
ports constantly show far greater returns
than have been realized for years simply
from an interest account. It is this fact
that explains the growth OF the cotton and
iron mills and other manufacturing estah-
lishments in the Southern States east OF
the Mississippi. We are repeatedly told
that the bulk of the money in these enter
prises is local capital
Those States have no more available or
surplus capital than Texas. Some OF them
have had much less than this state. The
difference is that over there the capitalists
have intellgently read the signs OF the
while In Texas the men with surplus
money have not The last Houston bank
statement showed millions on deposit The
bulk of this money was also shown to be
In the vaults And yet wide-awake gen.
tlemen here are canyassing with slow sue
cess for subscriptions to enterprises that
promise, upon all safe business calcula-
lions. large profits!
We can not hope for a great Industrial
and business awakening here until men
with money begin practically to recognize
the fact that large returns upon their
capital. or even good returns upon any
considerable portion OF 1t. are only pos
sible under the changed and changing
condition of the country. in the invest
ment OF their money IN tho active chan
nels Of business enterprise, Now, they are
not only standing in their own light. but
retarding the growth Of their community 1
The public generally are no longer going |
to borrow their money at high rates of
interest, Only those who are IN serious |
straits and are, therefore, unsafe, are GO |
Ing to agree to pay big rates for the use
OF money