The state herald., 1890-04-25

tho IONernmcHt 70 make loans, YET unuer
certain circumstances IL may do SO, In fact
has done so. The last administration had
at one time about sixty millions OF money
loaned to National banks. These loans
| were made on the security Of National
bonds and at 10 per cent. above the face
| value md without interest Such loans
were justified by the administration on the
grounds that the business Of tho country
| demanded that more money should be put
in circulation, and that tho only way TO so
| cure such Increased circulation was by
loaning the same to banks, and that by SO
doing tho money market would be greatly
relieved. This money was of course loaned
out by the banks Mt the regulnt rases Of
interest, and was on the whole very profit
able to the banks, whatever its indaence
may have been on the business Of the
country. did not approve 0f the loans to
| the banks, md denounced the same In the
| Senate on several occasions. not because
the Government did not have the power,
but because did not think 1t was good
could be put in circulation by other meth
ods, that would benefit the people instead
| Of the bnnks.
When 1t is proposed to loan money to
| farmers, all other citizens who have
| equally good security will demand that
money bc loaned to them on tho same
| terms. The agilculturists OF this coun-
try with their families and immediate de-
pendcnts compose the people, and aic mol
| only great In numbers but hare been al
all times conspicuous In their devotion TO
the best interest OF the country,and the ag
iicultural products exceed all other pro
ductions In value. Without agriculture
there can be neither trade or commerce; ;
civilization would be impossible. u the
agriculturists suffer, all others engaged in
industrial pursuits suffer likewise. II the
| Government loans money to tho farmer or
| agriculturists alone, 1t must be because
| agriculture is the foundation Of all other
| Industries, and because this class OF citi
| zens arc deserving of the especial foster
| ing caro- OF tho Government. / think few
will deny that agricultural interests Just
now need immediate relief, such interests
| being especially depressed beyond that OF
| other industries ! do not see any insur.
| mountable objection TO the Government
under proper restrictions, loaning money
TO those who own farms aud live on and
work the same. IL will, however, require
much caro- to enact a law that will secure
such loans TO those who nre rightfully cn-
| titled TO the same, and TO prevent favorlt
{, ism nhd abuse. ] must therefore answer
your question the proposition practi
cal one-in the Affirmative But IL this is
practicable proposition, is 1t wise to rely
| on such loans for that at best tan only be
Il temporary relief. The agriculturist is
suffering IRON low prices, rather than
| from the debts he has contracted, for II
| he had the prices OF fifteen years ago, he
| would be able to pay his debts with the
products Of his farm which he now finds
| quite impossible 10 do; and the relief he
demands is OF such character as shall in
sure TO him a fair price Tor his prudlcts.
Such loans will not remove the cause of
tho present difficulty. Whit is needed is
some legislation that will remove tho
cause OF this universal depression, aud
anything short of that will be only post
ponenont Of the evil day.
Temporary relief may be had. but always
with II recurrence TO the old condition
made worse by the temporary relief. Such
loans will not increase the price OF farm
products nor tho value of FARMS II will
| require Us much effort, Us much sacrifice
on his part to pay Il dollar OF interest to
the Government Us II would to pay the
same 10 an individual; the difference will
be that he will not be required TO pay as
many dollars for the uso of the loan as IL
he had loaned 1t of some individual or loan
| association but he will still be Il debtor,
relieved only in degree from his former
condition oil anxiety and dependence He
wants permanent relief aud not Temporary
| relief. He does not desire III rely on the
| Government and TO become its debtor II he
can avoid 1t, aud IL he can do this by being
| assured of u fair and remuncrative price
i 'VA hAo PibhANNs anu ny utluE put III u ~
sition TO ninke loans at reasonable rates
and on reasonable terms, and be assured
| that he does not bear more than his share
| OF the burdens Of society he does not want
| Government aid.
Can such IN advantageous condition be
| secured 10 the agricuitur.sts by lcsisla-
! ton | believe IL can, and In pont Of time
before legislation can lie had To secure
| Government aid In way of loans. The frcc
coinage OF silver Will in time secure to the
country u snilcicncy Of money, and with
that will come an Increase in The price OF
farm products %. well us un increase In
the valuc OF farms. In addition u the re
lief that will come from the free coinage
| OF silver, would cndeavor 20 relieve the
stringcncy In money by releasing the
large amount NOW held In tile Treasury
that does not do money duty. This would
| do by liberal pension Legislation aud by "a
iudiriUus use OF some portions of such
funds for Internal improyement,in ilcrcas-
ing facilities for transportation, cs well
as TO encourage the increase of our carry
ins capacity on the ocean, thus securing
cheaper transportation of farm products
to both our home and foreign markets, In
other words, would direct legislation to
ward securing snfiiclcncy of money TO
raise and maintain prices. J would see
that the circulation of the country is kept
| increasing Us the population aud business
impossible for ans man or class OF men to
contract the circulation or make cheap
| prices by combinations to make dear
| money. II prices are cheap by natural
! causes, producers cannot complain, but
when the price OF their products is the fc e
suit OF unnatural or artificial causes such
| producers have the right TO complain, and
10 insist that the prices OF these products
shall be left TO be governed By economic
| laws, aud not by arbitrary governmental
| methods In utter disregard OF such laws
l believe the low price Of farm products il
the direct result of vicious legislation,
touching the coinage OF silver and the cir
culatlon Of money, and that we will never
| have our iul measure OF prosperity until
there shall DO nt least forty dollars of cir
culation for every inhabltant of the United
| States, instead Of the nineteen or twenty
dollars per capita VIC now have; aud | nm
IN favor OF such legislation as shall secure
ut the earliest time possible circulation
equal 10 the amount | have indicated as
necessary, and that IN my Judgment will
AFFORD certain and permanent relief with
out imposing on the farmer tho burden Of
| n debt payable either 10 the government,
individuals or banks.
Allow me 10 say that my Views on these
| questions are not the result of recent con
yictiou. have on various occasions. both
! Ia the Senate and ont expressed substuu %
italy tho same viows ~ / have here out
lined, except on tho proposition to have
the government make loans to the farmer.
| That Is u comparatively new question aud
one have not until recently considered.
am happy TO say that public attention has
been so strongly called 10 the financial
condition OF the country Us especially nt-
fccting the farmers interests that | am
quito confident OF Legislation during this
session of Congress that will niford some
relief, and hope the full measure OF relief
demanded. To this eHd hnyo given mucl,
timn and attention aud shall continue Ia
10 so while nm honoreA by tho Sia.e with
the position now hold.
! nm, very respectfully.
II. NJ TrLlHis.