The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-02
A FAILING INTEREST," RATE.

Leading fnanciers and capitalists
throughout the country are predicting the
general fall OF the rate OF interest at an
early day In the South and West as well
as in the East. Indeed this reduction In
the price OF loaned money is already noted
In the great majority OF the States, with
tho tendency still downward.
The past year or two. owing to crop con-
dtlons abroad and good crops at home.
have enabled the American people to point
to a vast balance OF trade in their favor
and pile up big sums of money In the
banks This profitable business Is being
placed on a permanent basis to such an
extent that we are likely to become and
remain a creditor Nation. The favored
few who have money to loan or invest are
becoming possessed year by year OF added
millions, until the question confronts them,
even now, as TO what they will do with
their money. Rather than have 1t lie idle
they are willing to put It out at a very
low interest IL the security is frst-class
In the Eastern States today money is to
be had In abundance at from to 5 per
cent and even these rates arc not expected
to be maintained.
| 1t was announced in the papers short
| time since that leading life insurance
company of New York had addressed the
following inquiry to prominent fnanciers
in the North:
I'VE would be greatly obliged to you II YOU
would be good enough to let us know what
tate Of interest you consider II safe for q life
insurance company to count upon realizing
on Its total assets, Invested In such securt-
ties and mortgages as an institution Of this
Kind should hold, during the next twenty
years"
Fully hundred bankers 10 responding
to this inquiry were OF the opinion that
an average OF from to 3h per cent in
terest returns on high grade investments
or frst-class paper for the next twenty
years is as much as can be expected!
1t Is inevitable that as country nils
up and becomes more and more developed
and its industries diversified, money must
become more plentiful and easier to be
obtained. High rates Of interest are gem
orally found in new countries where the
question OF permanency OF growth Is still
doubtful and investments are yet regarded
as risk, Age OF a section as OF a business
brings confidence. All portions Of this
great country now have passed their stage
OF "ncwness" and OF experimental bust
ness Interest has been coming down. too
as might have been naturally anticipated
This matter Is one that should begr
to invite practical consideration from oul
home capitalists. They can not hope e
continue to hold their money for a high
rate OF interest any more than ran thu
capitalists in the East. And the hom,
people should in all cases where they hav,
any choice left to them. where they ar,
rot against The wall and compelled +,
look to Shylock begin to refuse to borrow
money, for any purpose, at such exorbitan
rates as are still exacted IN many in
stances in Texas.
II is yet possible for men with money /,
this State to command and 10 per cen
interest In exceptional cases, but there
money to be had elsewhere on our hrst
class securities at per cent and eve
per cent rate. The money lender to
day In Texas has thousands OF his capita
idle because ne is unwilling to correctl
interpret the handwriting on the wall an
recognize the fact that the days of hlg
interest in this section are gone, or ar
. rapidly goingl Our banks are filled wit
: idle money and will continue to be unlet
its owners display that degree OF intelli
gence which teaches us that something
, better than nothing. that half loaf
, better than none, that 6 or even per Ger
interest Is preferable to no interest.