The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1890-06-14
BANFLNG ON land.

tetin. The amount of money to be
advanced by the general government
is not to exceed so per cent of the
value of the land, exclusive of the i'm
provements. The land is, in all cases,
to be agricultural. There Is hope
held out that like privilege may be
extended to municipalities. The in
terest is to be 2 per cent per annum
and the loan is to run for twenty
years In this scheme of land banking
the local assessor, not subject to the
authority of the United States, how
ever, plays an important part. He is
converted, in sense, into controller
CT the federal treasury, for it is on his
valuation that the money Is to be ad-
vanced.
The owner of agricultural land can
do much better in one respect under
our present financial system than he
could if Senator Stanford's bill should
become the law. He can borrow more
than so per cent of the value Of his
land. The chances are that he can
borrow 70 per cent of the value of the
land and improvements. But he can
not get the money at 2 per cent per
annum, nor can he secure loan for
twenty years, except by renewal. Mu
inequalities which have the power to
issue long bonds-say to run for forty
years-the kind of securities of which
capitalists are always in search. can
now borrow money nearly on as fav-
orable terms-say . and 3 per cent,
as those proposed by Senator Stan
ford, viz, 2 per cent. The benefits Of
the scheme, if practicable, SO far es
agricultural lands and municipalities
gre concerned, DO not, therefore, ap-
pear to be quite SO great, after analy-
sis has been brought into play.
But in the abstract land never made
and will never make a sure basis for
any sort of money. The reason is the
simple one that it is not readily con-
vertible. Many bank has gone to
pieces because it loaded up with too
much land, upon which it could not at
once realize. 1t is not seen why
banking on land, even if attempted
by the United States, should differ in
any respect from private banking on
the same principle. In his advocacy
CT the measure Senator Stanford said
that it was absolutely original in con-
ception. Land banking was set up in
the early days in Pennsylvania and
proved a dismal failure. 1t was tried
in England and was speedily aban-
doned, because Of the difficulty above
stated. The senator is understood to
have stated, however, that it was
never tried on the scale which he sug-
gests.
The argument appears to he that a
principle is varied by extension. But
that is something that could not he
easily established. If the principle
proved to be vicious in the smaller
area of the colony of Pennsylvania,
there is no reason to suppose that it
would be successful when applied to
the whole of the United States. Be-
sides the senator probably forgot when
he was making the statement the
French assignat, which came very near
his proposed land-money. But the IN
herent weakness of the project is found
in the assumption that this money |
based on land is to lie subject to none
of the vicissitudes which overtake cir
culating media.
There is no statement of the m an
ner in which the proposed paper money |
is to be liquldated, or in what9 If the
hol1er of land moneY-paper can only
get another piece Of paper in liquida-
ton, the fat money business would be
again revived. If the government
liquidated this land-money in gold and
silver when asked, it would simply be
a purchaser of land at exorbitant
figures. If on the contrary it could
only liquidate in the lands which it
accepts as security, foreclosures would
have to be constantly gong on.
When the government got well
loaded up with mortgages on ag-
ricultural lands and nunicipal-
tiles, there would be nothing to pre-
vent the organization of party calling
for the cancellation of all the mort
cages. The beneGcent government
whicL had advanced the paper money
.ould easily enough be pictured as
avepous monster and moneylender
ghich proposed to devour patriotic
md confding people.
History tells US that as creditor
he United States has net been a sue
ess. The lending of money in any
orm has never been its strong suit.
parceled out 10. of money once
mong the States. 1t is carrying along
ow that debt as an asset of the treas
~ to the confusion some times of it's
It is true that it has never
'ked that the money should be paid 7
,ck. It is quite evident that if it
id. no response would he returned !,
he federal government advanced :
oney to the Pacific railroads and as
knows is having quite a ),
me in getting it, or any portion CT :
, back. In the meantime it has had
pay large amount Of the interest. .
all the farms and all the towns of
le country should be given like :,
,o,oo ~ ;s nof coop hou ooporo1 hooL