The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1890-03-10
sTANFoRp'S CURRENCY.
He Would Have Money Based Upon
Landed Wealth.

NEW YORK. March S.-A Washington
special to the Herald says that Senator STAN
ford of California is maturing a proposition
to have the currency OF the country based on
its landed wealth, and that he has put this
idea in the form of resolution which he
will introduce in the Senate next Monday,
instructing the finance committee to inquire
If loans may not be made by the government
upon mortgages deposited with it upon real
estate, the mortgages to bear low rate Of
interest, say from to 2 per cent per annum,
aud the government reserving the power to
call in reasonable amount of its loans at ito
discretion. Senator Stanford said last eve
ming regarding his plan that 1t was the duty
Of the government to issue currency upon
the value of real property or to authorize the
establishment Of national banks with power
to put legal tender notes in circulation upon
such security. which should be guaranteed in
their redemption by the treasury of the
United States. And why not? he asked. If
a national bank purchases bonds issued by
the government, and, to the extent of ninety
cents on the dollar is authorized to put notes
in circulation as currency. of which the gen.
if bullion from the gold mines may
be. taken to the mint, and have its
value fixed by the impression of a die I;
IL silver bullion may be accorded free
coinage because OF its standard and fneness,
why may not q farm, or town property Of es-
tablished, fixed and certain value, be used as
the basis of a sound and healthful currency +?
II can see no reason" Senator Stanford
went on, why land or town property, hav.
ing attained permanent value as indicated
bp the assessors estimate or ascertained by
impartial valuat0rs, might not be used as
currency with as much confidence as the pa
per obligations of government, or as the
metals produced from mines. have seen
the financial world twice driven from its
propriety by the fear lest the excessive pro-
duction of metals should prove valueless for
use as money. When the immense outputs of
gold from the placers of California and Aus
tralia reached their maximum, the financial
world underwent panic lest gold should
become too plentiful for safety, and when
the large discoveries of silver in Nevada be.
gan to be felt, the same alarm peryaded
financial circles lest the white metal should
become too plentiful for any other use than
| In the arts.
"The best money is that based upon the
| wealth OF the nation and the prosperity and
honor of all its people. Currency that has
for its security the real property of the
| country is more surely guaranteed than by
bullion produced from the mines and
stamped at the national mints. The country
| owns no mines, and who shall say that the
time is distant when private ownership shall
| hold in trust all the mines and be entitled to
| all the royalties? And Of what value " mi
| be the Constitutional provision that gives
| Government the right to coin money If it has
| neither gold nor silver to coin and stamp
That a currency based upon real estate
values under limited estimates would in.
crease activities in all Industrial employ
ments, have no manner of doubt, nor do ]
| think such volume of currency, properly
| limited by legislative restriction, would re-
call the days of George Law, reproduce the
Mississippi bubble, OF. the Dutch tulip
mortgaged for one-half or one-quarter its
value the accumulations of his life be more
| careless in the expenditure of his resources
| that he would be If he had hypothecated his
| property under an interest bearing mortgage
| to an usurer for coin, the interest upon which
he must pay, whether he uses his money OF