'The rise in the value of all the land I buy will make it worth while, several times over. It is quite simple.'
'It must take an enormous capital,' said Orsino, thoughtfully.
'It needs a large sum of ready money. But the lands are generally mortgaged for long periods, and almost to two-thirds of their selling value. The holders of the mortgages do not care who owns the land. So I pay about one-third in cash.'
'What becomes of the value of a whole country, when all the land is mortgaged for two-thirds of what it is worth?' asked Orsino, carelessly, and half laughing.
But San Giacinto did not laugh.
'I have thought about that,' he answered gravely. 'When the yield of the land is not enough to pay the interest on the mortgages, the taxes to the government, and some income to the owners, they starve outright, or emigrate. There is a good deal of starvation nowadays, and a good deal of emigration in search of bread.'
'And yet they say that the value of land is increasing almost all over the country,' objected Orsino. 'You count on it yourself.'
'The value rises wherever railways and roads are built.'
'And what pays for the railways?'
'The taxes.'