The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-12-26
sTAnFoRps SCHEME.
The California Senator Gives HIS Views OF
Measure For Financial Relief--A Loar
Based Upon Land Values.

The California Senator Gives HIS Views on
Measure For Financial RelIef--A Loan
Based Upon Land Values.
WASHINGTON, Dec. 20-Mr. Stanford
addressed the Senate the first thing
yesterday in explanation of the advisa-
bility of the bill introduced by him
December to provide the Government
with means sufficient to supply the
national want of a sound circulating
medium. 1t was substantially, he said,
the same bill as he had introduced last
session and he had not much to add to
what he had said on the subject on that
occasion But the bill was very i'm
perfectly understood and as the subject
was a very important one he desired to
explain it still further. THE bill 1
am now considering" he said, proposes
to put the Government in a condition to
issue supply Of money equal
substantially to the general demand
and to erect a standard by which the
Government may determine up to a use
full value OF 2 per cent what is the
amount needed. This has never been
attempted by any Government The
money Qegal tender notes. will be is
sued under the provisions OF this bill
upon unimpeachable and practically in
exhaustible security and it's 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
thay o II hai.
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
culation to supply the needs of BUSH
ness and its abundance stimulate not
only the larger but the smaller enter
prises and industries on which sd large
ly depend the steady employment of
labor with its natural consequence,
general prosperity. The matter of i'm
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-
feet and unlimited security. No Gov
eminent can afford to issue money ex-
cept upon a valuable consideration.
The value OF Government paper is its
quality aslegal tender and the proposed
bill would strengthen this paper Gf
the credit of Government of CO, 000,-
900 of people with all of our vast re-
sources is not perfect) by the partial Sc
curity which the Government would hold
for its return at the expiration Of the time
fixed by the loan The principle Of our
loaning moneyls fullyestab-
lished by the advance itnow makes upon
its own bonds, which, while en- tirely good,
as between the banker and the Govern
ment, does not strengthen the security
of 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 for
all 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, i think, will have
more confidence in financial measure
that is new and radical if it has at pres |
ent land only for a 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 fix the |
general rate of interest for business |
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 |
free OF interest ard loans it
at such rate as its use commands in the
market This measure has been COM
pared to plan adopted in the!Argentine
Republic for loans on land, but there is |
no analogy between the two and to COM
pare the workings of a 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
of some irresponsible banker
to those of the Rothschilds This bill |
fixes standard for the amount go long |
as money can be proftably used at more
than per cent. per annum. The ability
of the Government to make money being
the real wants and neces-
stiles of the people can be ascertained
and met The foundation of the whole
matter and the real question to be con-
sidered is that inasmuch as 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 people"