Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-03-11
A FINANCIAL PROPOSITION.
Senator Stanford Wants the Govern
ment to Loan Money on Real Estate.

The Senate committee on finance has in its
possession resolution which, if adopted.
would simply revolutionize financial matters.
The author Of the proposed legislation is Sem
ator Stanford and he states in the preamble
tina. there is stringency in money and much
consequent distress, the energies Of the coun-
try being depressed, large portions of the
farming communities heavily burdened and
struggling for relief This stringency the resolu-
ton says, is largely due to the retirement of
government bonds (the money advanced upon
those securities having furnished the best and
most acceptable currency and the government
should therefore repair the damage by loans on
real estate. The resolution Instructs the COM
mittee on finance TO inquire what relief may
be furnished by the United States government,
and particularly whether loans may not be
made by the government upon mortgages de-
posted with il upon real estate. independent
of improvements. at such rate and to such an
amount only as will make the security to the
government perfect. the government to receive
some small rate of interest. from l to per
cent. ample compensation for the use of its
credit, and to prevent the undue applications
for loans beyond the needs of the country.
And the government. as further restraint and
provision against an overissue Off such thing
be possible upon perfect security where the in
serest is very slight. shall provide a call in a
percentage of Its loans from time to time, upon
reasonable notice, as it may deem necessary,
at its own discretion, for the welfare of the ma
ton.
IN SUPPORT OF HIS RESOLUTION
Senator Stanford delivered a minute speech,
in the course of which he said: Money be-
comes valuable as it stimulates industry and
facilitates the exchange of the products of
mans labor. Property itself is valuable ac-
cording to the to which it is applied.
Thus, supposing a mans wages we're 81 a day,
SlOO would employ 100 men one day; but could
the product of the labor of those 100 men be i'm
mediately utilized. the 800 might give employ
ment to 100 men every work day in the year.
The government bond is valuable to the holder
on account of the interest IL earns. As an
energetic factor in the transactions of men it
only amounts to the percentage which it draws,
but when the bond holder by depositing it
with the government receives back 30 per cent
in government bills. 80 per cent of its value be-
comes energlzed into an active commodity,
giving possible employment to the energies of
the country. In like manner, if the farmer
were able to borrow from the government with
out interest certain amount OF Its bills, CIV
ing his farm security therefor, to that ex-
tent his land would become an active force and
he would be enabled while giving employment
to the extent of the money loaned him, to inn
prove his farm and increase its value to the
full amount of the loan. Thus the govern
ment loan would be doing a double duty. Now
the activities of this money do not terminate
with its expenditure by the farmer; those who
have received it i'll their turn will make use of
it as an energiziny factor in the forces of life
70 an indefinite period. As money employs
labor 1t brings to life a continuing force, labor
begettine labor as certainly as its fruits are
valuable"
In conclusion the Senator said: ''Man is the
rightful heir to peace and prosperity. and much
depends upon the intelligence of governments
to represent the associated capacities and in
terests of the whole To me one of the most
effective means of placing at mans disposal
the force inherent in the value of property is
through furnishing a bountiful supply of money
based upon unquestioned and secure values"