Why Interest Is High In Texas

The Galvestou Daily News reminds its Texas readers of tho difference in interest rates in the northeastern states and in some of the western and southern states and gives them a few elementary lessons on the reasons for this difference. "Interest is never so low," it says, "in communities given over to snspicions fires, questionable assignments, fraudulent failures or to legislation with a deoided turn against the creditor and in favor of the debtor. " Much of the rnarket rate of interest is insurance against risk, and of conrse diminishes as the risk decreases. ' ' Where men are required by law to pay their debts and are not sheltered and encouraged in tricky courses by unreasonable exemption laws and by a public prejudice against creditors as a class the risk is naturally less serious. ' ' Making its application to Texas, The News says: "We have a right to to leave a fraudulent debtor a residence worth $50,000, all the bank stock or bonds he eau carry and an extraordinary collection of the tools of his trade or profession and to defy his creditors to crook a finger at him. We can do this if we prefer, but it is goiug to cost us , something. " It asks why the "goodly majority of. the people of Texas, ' ' who "are not disposed to live high today and hide behind the exemption law, the assignmeut law or some other law tomorrow, ' ' should be f orced by the discredit of bad laws and a few dishonest rnen "to pay two prices for every dollar they borrow. ' ' It believes the rate of interest wonld come down one-half and the loanable fundswould doublé if the honest men of the state would demand the enactment of laws under which a creditor could collect what is due him.