The midland journal. (Rising Sun, Md.) 1885-1947, 1890-10-24
Friday, Oct. "a, 1890.
The Government Loanlng Money
to Farmers,

Is the most wicked, most oppressive, and
most destructive of all things. 1t is made
respectable by legislation. The questions
are now fairly presented Shall the produc-
ing classes be allowed to settle their contracts
with an honest measure of value? Shall
they be allowed TO pay in money of the con-
tract, or shall the creditor class which
holds mortgage on all the property and
services of the people of this country, be
allowed 10 increase the obligations Of con-
tracts at leasure?"-Hon. w. NJ. Stewards
speech in U. s. Senate, May 22nd, 1890.
Usury has been the great despoiler OF
labor from time immemorial. 1t is interest
that eats up the substance of every nation,
and the blow aimed for the relief of produc-
tive industry must strike usury in its vul-
nerable point. The only hope Of. reaching
this desirable end is through government
loaning direct 10 the people, at a low rate
of interest, without the Intervention of
middle class. The latter is the system es-
tablished by our present national bank law.
The government says through that law to
the bankers. Deposit government bonds in
the Treasury and order 80 per cent of their
face value to be issued in notes bearing the
stamp OF your banking corporation, and
Endorsed by the government. There is no
other law extant by which the government
may issue currency, except TO coin gold and
limited amount of silver. By the require
ments of this law the finances Of the country
are taken out of the hands of the govern
ment and placed in control of the national
banks, and the banks, as we haye pointed out
in previous articles, are completely in the
power of the great bond holders of this
country and Europe; the Rothschilds, Bar
ings, Vanderbilts, Morgans, DreAels, ct al.
1t will be seen that the government is the
guarantor of all. 1t upholds the bonds, it
endorses the national bank notes. it coins
the gold and silver, and it holds and exer-
cises power to tax all the people of these
United States to make Its obligations good.
The question arises IN the mind of common
folk: Why does the government turn all
this great power and privilege over into the
hands of small class of the population
known as bankers who loan this money TO
the industrial, producing classes at 6 to "a
per cent interest, and take as security 70,
its payment, their houses, lands and crops?
No sensible reason can be given why
this practice exists or should be main
tanned.
Hon. Leland Stanford offered bill in
the Senate at the last session of Congress,
which provided that the government should
loan money direct TO the people engaged in
productive industry, at rate of interest not
above 2 per cent. And that the land Of
farmers should be security for loans not ag-
gregating more than one half their apprais-
ed value, exclusive of Improvements.
These loans 10 run for 20 years, payable.
however, at any time shorter than that at
the option of the borrower. The details for
putting the law in operation were all pro-
vided in the bill. The money monopoly
lawyers in Congress booted at Mr.. Stanfords
bill and the finance committee presented
an adverse report at once. All the great
monopoly and trust papers of the large
eastern cilies, which papers are owned by
the monopolies, misrepresent and ridicule
the bill, and laud gold and the gold ring as
the only money and financiers, worthy of
any consideration in the world. They
assume, but offer no argument, that such
law would be ridiculous, unconstitutional
and wholly impracticable. On the contrary
there could be no measure devised more
practical and beneficial.
The best fnancers in the country main
tain, and base their assumption on history
and experience, that $50 per capita is the
least amount of money required in circula-
ton to transact the business of this country
properly. and that business is rapidly grow
ing, Notwithstanding adverse conditions
which want of sufficient money imposes on
it. There are 100000 people in the
United States, and the number is steadily
increasing. Fifty dollars per head would
indicate that So, 200, 00O,O 900 is required to
set industry free from the cramped condi-
tion under which it at present exists, and
open avenues of employment to every idle
hand. In place of this amount of money in
circulation there is less than one third that
quantity.
Suppose the Stanford bill becomes law
land it or similar measure will, if farm
ers are true to themselves and the country
and our present money bpnd-trust-
bank-law is relegated TO the limbo of
infamou, legislation, and the tons of gold
and silver now stacked up in the treasury
vaults be put in circulation by system of
banking controlled by the government, 10
place ofthe present system, which controls
the government, and for every dollar Of
gold and silver coined by the government
miuts, three dollars in legal tender notes
are issued, which would amount to about
$160,000,000 annually. This amount, in
place of being issued to national banks as
the present law provides, ard by them loaned
to the people, the loans be direct from the
treasury to farmers vino are crushed under
usurious mortgages in the hands of loan
agencies. The to 10 per cent mortgages
would be paid and government loans taken
in their place, drawing per cent interest,
payable, not to the sharks, but into the
treasury of the United States, to be applied
TO- the expenses of government, and thus