The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-12-31
SHALL THE STATE HELP!
LEAF FROM NORTH CAROLINA
HISTORY,

Accompanied by Suggestion to the
Legislature That Loan. be Made by
the State on Land.
Especial Cor. STATE CHRoN1cLE.)
HENDERSON, N. c., Dec. 30, $780,
Now that the Republican Senatorial eau
Gus has decided upon their bill for finan.
cial relief, it is apparent tho scheme is
devised chiefly to help the national
banks IN the financial centres of the
country, and ont those who have United
States bonds or gold or silver bullion can
avail themselves Of the privileges con-
tanned in the bill
Until there is elected a Democratic
Congress and President, we cannot hope
for any financial legislation that will
help the agricultural portions of the
country. The present Congress will not
pass Senator Stanford's bill TO issue
greenbacks 10 be loaned to the farmers,
nor will it make the coinage of silver
free.
The enquiry here arises can the several
States afford the necessary relief by
their individual action For instance,
would it be constitutional for the incom-
ing Legislature of North Carolina to
pass an act to issue, say, five or ten
million Of per cent. bonds, the pro-
| ceeds of which, to be loaned to the
people of the several counties on unin-
| numbered real estate at Al per cent.
| interest, for period of fifteen years.
Not more than $1,000 to be loaned to
any one person. Conceding the Legis-
lature has such power, would it be
good thing to do} We may form some
idea as to this, from study of the results
of just such legislation upon the people
of this State when colony Of Great
Britain. 1t may surprise some to be told
that in 1927, the General Assembly of
North Carolina, as relief to the people
suffering from a scarcity of money,
passed an act providing for the issue Of
5000, 100000 in bills which were to be
legal tender for debt, and were to be
loaned to the farmers of the several
counties (precincts) for period of Is
years, at 6 IA per cent. interest. This in
terest and one-fifteenth of the principal
was payable each year. The county
l
incumbered farms to one-half their val
ue. If the interest was not promptly
paid, he had the right to distrain upon
any personal property cf the debtor he
could find. If tho interest was
not paid for three consecutive years, the
county treasurer was then to re-en eI
and take possession and sell the land on
thirty days notice.
1t will still more surprise some to be
told, that the above scheme, open to sc
many objections. and presenting SO many
difficulties; in other words, apparently sc
visionary, met with complete success
It was so beuef4ial to the people O.
, North Carolina, that it was substantially
. adopted in Pennsylvania, Massachusetts,
Rhode Island and South Carolina; ant
the plan was recommended to the Gov
ernor Of Massachusetts,, to the mothe
conntry fo.. i:troduction in all tn
colonies. L you'd seem but simpl
r justice, that, as the Nationa
t Banking law denies to the farmer tn
privilege of borrowing money from na
tional bank on his farm as security
/. and as Congress has gene still furthe
and legslated out Of existence our Stat
banks that formerly afforded this aid t
= the farmer, some plan should be deviSe'
, by which the owners of land, specie
of property of all the most stable il
= value, indestructable in its nature, i'm
4 movable; the very mud sill of all othe
5 properties, could make use of his prop
b erty as basis Of credit.
!. Such a scheme must look to govern
y ment aid, either National or State
g rather than to the banks.
# It is not a proper function Of ban
s to lend money on lani. Such loans c
d necessity must be for a long time
q Banks cannot make loans on such sect
!. rity or for such lengths of time. The
n must have their loans in such shape 6
j. to be readily convertible into money 6
IS necessity demands. The function of
,r bank is to act as the custodian of MOI
e eys; to provide a circulating mediul
(money); TO facilitate exchange and
u aid business by granting loans on sho
g. time on commercial paper; but not
lend money on long time, or {
t real estate. Hence the relief of th
class of our population who posses
e. only land, must come direct from tt
y Government either National or Stat
g As some deny the power of the &c
eral Government to lend money to tt
be people though it is done by every Co
gress that grants sub'idy to a stear
Id ship line or bounty to sugar plant
there can be- no such objection to t
nd States doing such thing, provided
own constitution does not prohibit tn
We II such be the case, it is matt
entirely with the people OF the Sta
'et whether they will not change their Sta
he Constitution to enable them to
it. 1t will, l think, be conced
zee that the values Of our farmi
is lands are below par | can think Of
do plan that will tend more to bring th'
er up to their normal value, than some su
scheme as is outlined above; and is
vt, not time, that species of proper
ne which for twenty eight years has be
cir discredited in the eyes Of the commerc
world by the direct act of the Gene
is Government, should be rehabilitated
some Governmental action either
to, tional or State9 l, for one, think it il
WM. 81. S. BURGWYN
ent Three Pleasant Items.