The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-04
THE PUBLIC AND INTEREST RATES.

Referring to the editorial In The Post
OF Tuesday on the failing interest rate. !"
a gentleman well known to the citizens Of
Houston, and himself man OF means
writes that in Houston. now, there is a
great deal OF idle money and loans are
made at very low rates on choice security
by those who have the good Judgment to
see that tho day of high Interest is passing
If not actually gone"
He goes further and remarks that "6
per cont should now be the limit of In.
terest in bank transactions everywhere,
and the farmers and all business concerns
SHOULD insist on paying no more than
that"
Here. Of course Is the difficulty--the
Willingness of farmers and business con-
Germs to pay high interest when they get
in any little pinch" or desire to branch
OUT to any extent. or make an improve
ment here and there. The fact is that
our people have been so long used TO 8,
10 or IL per cent money that they have
learned to bear the burden without com.
planning. They have come TO take this
oxtorion rs 4 matter Of course, and do
not stop 10 calculate what serious nat
ter 1t Is for them 10 be paying S or 10 per
cent interest for the use OF money. It
viii simply ruin any man to pay 10 per
cent for money unless he is putting that
money into business that Will bring
still larger returns and that is absolutely
safe The man who pays exorbitant rates
for money for any other purpose is put
ting his nose to the griudslone' and play
Ing ecrf to a money lender
Take, for example, the purchase on
time of home. Assume that the price of
the property is $4,000 and the loan for FIVE
years. Al % per cent the price paid will
reach $500, and unless that particular
property Is increasing in value at the rate
of 10 per cent per annum, the purchaser has
been held up" in genteel way. for
large sum. 1t muet be remembered. TOO.
that the price Of property purchased on
time is in nearly every instance higher
than when sold for each. The burden is
only appreciated when the general result
is considered. II the purchaser. In the
case mentioned, had been asked $500 cash
for the property In the first instance he
would have denounced the price as "cxor-
bitant' and Immediately concluded that
the seller was attempting 10 rob" him.
But 1t looks so ohcan and so easy to pay
for It on time at 10 per cent interest,"
There are, however, thousands of citi-
Gems who count the cost and refuse to as
sumo such heavy obligations. Real estate
langushes under high interest rate for
this reason Nor will shrewd business
men embark in business on borrowed cnpi.
tai where interest il high and the profits
narrow. The holding of large amounts OF
money in the banks, therefore, for high
interest checks progress in numberless
directions. But the fact that a consdera-
hle number OF borrowers thoughtessly or
reeldessly continue to pay the high rates.
causes this accumulation OF money in the
banks, Short sighted Shylocks refuse
lower rates so long rs there are any An
tonios to agree to the exaction of the
pound of flesh!
The public needs to hs educated TO the
fact that high interest is an actual extor-
ton, and an extortion that but few men
can stand. The public should know that
from 3 to per cent money is easily OBJ
tanned in the Northern States and that
the lower rate is coming this way when
the people who can 10 without money I'M
less It is leaned them at low rate. re-
fuse TO borrow, the financial or money
making Instinct Of capitalists with idle
money viii compel them IN selt-preserva-
tion to put out their capital at low inter-
est. or invest il in industrial and CONNER
cial enterprises