Evening capital journal. (Salem, Or.) 1888-1893, 1890-12-23
Sen Jtor 'Sianrofa's Gin 'fof rfSaatM


Reform.
WASHINGTON, Dec. I9.--ln ~,
senate after routine bu-un,ss, Suu,
ford a'ldr sscd the senate ,rr his It'll
t" incr,ass the circulating medium.
He said:
Money isthe most important fac
tor In the business relations of the
country. There was II limit to the
quantity of gold aud silver metals
and that limit could not ue exceeded
l,y any effort on the part of the gov.
erhnnent. 1t was, therefore u great
mistake ior the government to con.
fine itself IN the issue of money tc
material outside of its control and
limited In quantity. On the SUN
cheney of money depended very
largely the iu,iusi ries of the coun
/ try. An illustration Of its inipOr.
lance was tot te found in the present
depressed financial condition. Nevel
was the country more prosperous,
yet owing To the want of money
upon u slight disturbance Of credit
there was distress all over the land
~ general was the uluasiness aud
apprehension that money which
ought to be In circulation is being
boarded up. The Lili he was now
considering proposed to put the gov
erntieut iit II condition tu issue aud
supply money equal substantially ly
to the gen, raj demand AMI To erect
II stand ,rd by which the govern.
inent light determine up to the use
iullvaluc of two l,er cent. what war
wanted Money "legal.tendei
notes" would be issued under til,
prrisions of the bill upon unim
peachahle aud practically inexhaus
tible security, aud its supply was t.,
I've ascrrt,ined and determined by
the rate which the borrower could
aff,rd to pty. Tw, per cent. was
the amount To b. all to the govern
nient for the loan of its money, and
81 long AS the money was worth
more than twosper cent, securit!
being practically ineXhaustible, the
money would always lie borrowed
from the government, aud thus the
government would be able TO dis
charge its duty and supply the gen
eral want. Tie principle Of the
government louiIing money il fully
esl ablishtd 10y Tie advance it now
had made upon its own bonds,
which, while entirely goeil bet tween
banker and government. did not
strengthen the security of the hold
er, which rested ut last upon the
authority of the government. The
scheme OF tie bill is to supply an
ample amount of money for all husi-
ness purposes. / have mentioned
lands as security. l.ecause they ap
pear the best aud most certain for
all purposes and are sufficient to fur.
mish all the money needed. The
people, / ;hiAk, will have more c0u-
tidence in Il financinl measure that
is new and radical il 1t has ut pres
ent land only for u basis. The rate
Of Interest on these loans TN real
estate Is fixed ut two per cent. in the
Till, hut in time may Oe reduced as
experience shall teach. The rate nf
interest cl,arg,d d iy The government
under the provisions uf the biil will
not necessarily iiX IA general rate of
interest FIR business purposes. That
Will always be deit trnimed~ by IFS
value IN use. Tie fafmer having
the best security viii borrow
for his own usr, or the use of others,
VIII" may he willing I" pay him sa.-
i.fI t ,ry iller,sl. The banker tor
ioms nlo.ey from the government
free If interest AMI leans il at such II
rate as its use Commands in the
market. rhls measure has been
compared to Il rian adopted In the
Argentine Republic for loans on
land, but there Is no analogy he-
tween them, and To compare the
wui king of u measure of t'iat repub-
lie, of ray, 5.OJO,OU0 population, to
lhat of "ur mnIry with its enlight.
ened OL,OOJ.0U would I've like coili-
pairing he methods of AN irrrslonsi'
blelmil .er 10 those ,,f ihclto Ii 'clIil,is.
The bill fixes u standard :Ui the
alaount 81 long AS money c.n be
proiilabIy used at more ;han twu
per cent. per unnum. The ability
nf the government tu make money
being Unlimited. the real wants AMI
necessities Of the people can l*' as
certaincd and met. The foundation
Of the whole matter, and the real
question to I've considered, Is that
iliasniurh AS the government re.
.erves the right io Use hiohey, II Is
It's duty, the means icing provided,
to furnish what is necessary to the
pr sperity of the people.
AT the conclusion of Stanfnrd's
remarks the bill WAS referred 10 tue
committee an finance.