Sacramento daily record-union., 1890-03-11
he Would Have Uncle Sam Loan Money
10 Every Farmer.

He Would Have Uncle Sam Loan Money
10 Every Farmer.
wAsHIScTos, March l0th.-Senator Stanford
presented the following resolution in the Senate
to-day:
money and Eagch conse9 9uent distress, the .en-
ergies of the country being depressed, and large
portions OF farming communities being heavily
buTdened and struggling fol relief snd whereas,
the United -tates Government is alone author
lied TO make money, which SHAH be legal
tender whether it bestaEnped upon paper, sill
yer or geld; and whereas, the value of these
commodities. when used as money, depends en-
tirely upon the stamp of the Government max
ing 1t legal tender and whereas it has been
found that money advanced by the Government
upon its own bonds to holders thereof has fur
nished the best and most acceptable currency
through which to-day in our country most of
the exchanges are made; ard whereas. the pres
ent strjDgency is largely due I the retirement
of Government bonds which have been so
largely the basis OF our circulating medium;
and whereas. il IS of great consequence TO na-
tiOnal and individual interests thai credit
should be established where merited, as far as
II Is sale esC practicable: aud whereas, the Gov
eminent can do this abundantly without risk to
itself upon much of the property ofthe country,
as II IS now doing upon It's own bonds on which
il is paving interest; and whereas, loans uTOn a
properly basis would furnish all the money
needed without cost TO the Government. aud a
fair rate of interest paid by the borrower would
give to the Government for the use of lis credit
In bills a large income, therefore be it
Reseiucd, That The Committee on Finance be
instructed to inquire what relief may be had,
particularly whether loans may not be made by
the Government upon mortgages deposited with
it upon real estate independent OF improve
ments, at such rate and TO such amount Only as
will make security 10 the Government perfect,
the Government TO receive some small rate oi
interest from / to per cent? }, ample comp nsa-
ton for the use of its credit; and to prevent
undue application fer loans beyond the needs
OF the country the Government as q further
int ~ "a n
such things be possible, upon perfect security
where the interest is very slight. shall provide
TO call in such percentage of its loans from
time TO time upon reasonable notice, az II N sy
deem necessary at its own discretion for the
welfare OF the nation.
Senator Stanford i'll presenting his resolution
said:
From the earliest civilization there has ex-
listed in all countries need OF some commodity
that viii stand as the representative OF values
through which exchange can be made. without
the commodities themselves being passed from
hand to hand. In the process Of time gold and
silver came into use for this purpose-of equal
ling exchange-and today, when stamped by
responsible Governments. tbs sc metals have
value as money far beyond any possible value
they might have were they only used in the
arts.
Money becomes valuable as it stimulates in.
dustry and facilitates the exchange of the
products of mems laCor.
"a Government bond is valuable to the holder
on account of the interest it earns As an ener-
getic factor in the transactions of men it only
amounts to the percentage which it draws, but
when bondhoders, by depositing with the Gov
eminent, receive back 90 per cent. in Govern
mept bills 90 per cent.lot its value becomes en-
ergiZed into an active commodity, giving en-
p.oyment to the energies of the country.
In like manner If q farmer were able to
borrow from the Government without interest
certain amount of its coin, giving his farm as
security, therefore to that extent his land would
become an active force, and he would be ell
abled While giving employment to the extent OF
irT1rtr a
increase its value TO the full amount
THUS The Government losr would be doing a
double duty. Now the activities of this money
do not terminate with It's expenditures by the
farmer; those who have received it in their
turn will make use of it. as an energizing factor
in the forces OF life to sn indefinite period. AS
money employs labor, it brings to life q contin-
uing force, labor begetting labcr IS certainly
as its fruits are valuable.
Another way by which we can appreciate
what money actively used may perform in the
settlement of balance is to be found in the value
of commodities produced aud exchanged as
compared with the amount Of money in eircula-
ton. How far the boundleSs resources of our
country shall be put into activity depends not
only uDon the active industry of our people, but
upon the power necessary to induce that indus
try and it should be the fostering care of the
Government TO see tina such industry receives
every encouragement.
AN abundant supply of money means to in
dividuals of capacity field for the use OF their
abilities in prosecuting their various caliiDgs Of
sociations Of individuals by affOrding them
facilities for obtaining capital for the tTansac-
tions Of every kind. An abundance of money
means universal activity, bringing in its train
all the blessings that belong to the constantly
employed, industrious, intelligent p op.e.
'lf these proposed loans could be made by
the Government without risk do rot think there
would be any serious obstacle TO the accom-
plishment Of the object Of this resolution. In
my opinion. ample pr 4tsctiOn would be afforded
the Government if it hmi-ed its loan 10 one
half or one-quarter the assessed value of the
property given as security and upon the ap-
prasemeDt Of Government officers especially
selecteG for hat duty,
1T seems to me that the great thought Of hui
mainly should be how TO secure the pr atest
advantage TO the great multitude OF tcilers, iu-
crease their power Of production and elevate
their condition.
I've Know thst great improvement IS within
the provisions of provi fence, and in the pros
perity of the masses Of people the prosperity OF
all is assured.
Man is the rigttful heir 70 peace and pros
perity, snd very much depends On the intelli-
gencs Of the Governments TO represent the asso-
eiated capacities ard interest OF the whole. To
me, one of the most effective means of placing
at mans disposal the force inherent in value
of property IS by thoroughly fuInislieg q
bguiitifui supply of money based upon unqCeS-
ti0npd and secure values ~