St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-05-24
That Is What Senator STAN
ford Would Do on Farm
Interest.
He Would Make the Govern
ment a Lender at Two
Per Cent.
This, the Senator Thinks,
Would Make America Uto-
pia in Fact.
The Ghost Of the Hennepin
Canal Bobs UP in the
Lower Branch.

WASHINGTON, May 23.-Mr. Stanford
addressed the senate to-day in advocacy
of the bill introduced by him some days
ago, providing for loans by the govern
ment on agricultural lands. "We can
all well understand" he said, "the great
advantages to the people at this time of
a loan made to the national banks by
the government of 80 per cent upon its
own securities. One hundred thousand
dollars of government bonds at per
cent only produces $4,000, yet when its
value becomes energized to the extent
of 80 per cent (Which the government
advaneeS its power is so increased
that the 100000 in its activity
may in the course of year
double its value and pass from
hand to hand many times, stimulating
the various Industries of the country.
So, too, this bill will have correspond
ing energizing effect. The money
issued under it is not intended to accom-
modate the farmer alone, but as it comes
into circulation it will put the means of
prosperity within the reach of those
who are engaged in the smaller and
larger industries of the country. This
money issued by the government be-
comes automatic. 1t will contract when
there is less use for it and expand when
there is a great demand; thus disas-
trous financial contraction will cease to
be possible" He argued that the rate
of interest proposed-2 per CENTS
fixed for good reasons. No farmer
will borrow unless he needs the money,
and when he ceases to have use for it
will return it. But this will seldom
occur, for money borrowed OF the gov
eminent at per cent can readily find
use at higher rates in other interests,
and thus the farmer will be benefited.
A per cent interest is burden which
farmer cannot we'll bear, while, owing
to the activities of business, merchant
finds it a reasonable rate to pay. The
value of money lies in its activity. This
per cent, with the privilege to the bor-
rover of returning it when he has no
use for it,creates moneyed system that
will meet financial expansion and con-
traction as they may occur with
out inconvenience to any. Under
it's provisions, the real estate
of the country being so vast,
there will always be the pos
sibility of obtaining the money neces-
sary to carry Oh the enterprises of the
country, and when there is no further
use for the money the borrower stops
paying interest and takes up the mort
gage upon his farm. In conclusion, he
said: 1.-The bill, while not perfect, pro-
vides fairly we'll the machinery to carry
out its dealings. If adopted, with such
amendments as shall seem wise to con-
gress, it will largely increase the pros
perity of the humblest classes in labor
and assist the Weather to success in
their enterprises. The bill provides for
what may perhaps not improperly be
termed revolution i'll finance, and | do
not expect that it will be adopted until
1t has been fully considered by the peo-
pie and has met with their approval. l
move that the bill be referred to the
committee on finance"
The bill was so referred.