Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1890-12-27
STANFoRD's SCHEME.
Tho California Senator Gives His Views ON
. Measure For Financial RcllOf-A Loan
Baaed Upon Land Values.

WASHINGTON, Dec. 2O.-Mr. Stanford
addressed the Senate the first thini
yesterday in explanation OF the advisa
bility Of the bill introduced by him
December to provide the Government
with means sufficient to supply thu
national want of sound circulating
medium. 1t was substant TALLY, he said
the same bill as he had introduced las
session and he had not much TO add II
what he had said on the subject on thai
occasion But the bill was very i'm
perfectly understood and as the subject
was very important one he desired tC
explain 1t still further. The bill
am now considering, he said, proposes
TO put the Government in q condition tc
issue q supply OF money equal
substantially to the general demand
md to erect q standard by which the
Government may determine up to q use
full value OF . per cent what Is the
amount needed. This has never been
attempted by any Government The
money illegal tender notes. will be Is
sued under the provisions OF this bill
upon unimpeachabIe and practically in
exhaustible security and its supply is as
certain and determined by the rate
which the borrower can afford to pay.
Two per cent is the amount to be paid
to the Government for the loan OF its
money, and so long as money is worth
more than 2per cent, the security being
practically inexhaustible, money will
always be borrowed from the Govern
ment, and thus the Government will
be able to discharge its duty and
supply the general want AS bor-
rowed money is not expected to lie idle
but to be used 1t goes into general cir
,ulation to supply the needs Of BUSH
ness and its abundance stimulates not
only the larger but the smaller enter
Or SEES and ind ustries on which so large
Iy depend the steady employment Of
labor with its natural consequence,
general prosperity. The matter OF inn
mediate and overshadowing Importance
to us is to supply our own industrial
wants For this purpose we must have
more money-money based upon per-
'ect and unlimited security No Gov
eminent can afford to issue money ex-
,ept upon o valuable consideration.
The value OF Government paper is its
quality as legal tender and the proposed
bill would strengthen this paper Qf
the credit OF Government OF 81. 000,.
300 OF people with all OF our vast re-
sources is not perfect) by the partial Sc
,urity which the Government would hold
Tor its return at the expiration OF the time
fixed by the loan. The principle Of our
Government loaning moneys fullyestab-
lshed by the advance itnow makes upon
its own bonds, which, while entirely good,
as between the banker and the Govern
ment does not strengthen the security
If the bill holder which rests at last
upon the authority Of the Government
The scheme OF this bill is to sup
ply an ample amount OF money fof
ell purposes have mentioned the
lands as security because they appear
to be the best and most certain OF all
security and are sufficient to fur
nish all the money that is needed
The people, think, will have
more confidence in financial measure
that is new and radical il 1t has at pres
snt land only for basis The rate OF
interest on these loans on real estate Is
fixed at 2 per cent in the bill, but in
time may be reduced as experience shall
teach. The rate OF interest charged by
tho Government under the provisions OF
this bill will not necessarily DIX the
general rate of interest for business
purposes That will always be deter
mined by its value in use. The farmer
having this security will be proud OF its
use or the use OF others who may be
willing to pay him satisfactory inter-
est The banker borrows money from the
Government free Of interest and loans it
1T such rate as its use commands in the
market This measure has been COM
pared to plan adopted in thelArgentine
Republic for loans on land, but there Is
no analogy between the two and to COM
pare the workings OF measure OF that
Republic Of say 5000. 900 OF people to
that OF our country with Its enlightened
81, 900. 900 would be like comparing the
methods OF some irresponsible banker
to those of the Rothschilds This bill
fixes q standard for the amount so long
as money can be proftably used at more
than per cent. per annum. The ability
Of the Government to make money being
unlimited, the real wants and neces-
sites Of the people can be ascertained
and met The foundation Of the whole
matter and the real question to be con-
siderod is that inasmuch rs the Govern
ment reserves the right to issue money
it is its duty, the means being provided,
to furnish what is necessary to the pros
perity Of the peopla."