Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-12-19
The Conference Report Under Consid-
GRAFTON in the House.
THE PLAN OF SENATOR STAMFORD.
He Explains and Advocates His
Government Loans Bill.
THE DEFICIENCY BILL PASSED
SENATE.

Sehate Dill 10 autnorlZe the construction OF q
bridge across the Red River of the North at
Drayton, Nd, was reported and placed on the
calendar. Also Senate bill appropriating s75,-
OoO for public building at Fresno, Cal.
SENATOR STANFORD ON THE CURRENCY QUESTION
Mr. Stanford addressed the Seuate in expla-
nation and advocacy Of the bill introduced by
him on the 9th instant to provide the govern
ment with means sufficient to supply the ma
ltonai want Of a sound circulating medium. 1t
was substantially he said, the same bill as he
had introduced last session. and he
had not much to add to what he had
said on the subject on that occasion
But the bill was very imperfectly understood.
ana as the subject was very important one he
desired to explain it still further. If the bill
was correct in principle its enactment was cal
| culated TO effect in most substantial manner
the general interests Of the country. Money
was the most important factor in the business
relations OF the country. There was
unit to the quantity of gold
and silver metals, and that limit could
not be exceeded by any effort on the part of
the government. 1t was. therefore. a great
mistake for the government to confne itself in
| the issue OF money to material outside of its
control and limited in quantity: on suliciency
OF money depended very largely the industries
of the country.
THE PRESENT FINANCIAL DEPRESSION.
| An Illustration of its importance was to be
found in the present depressed financial con-
dition. Never was there so great an accumula-
ton OF wealth as now; never was the country
| more prosperous. Yet, owing to the want of
money, upon a slight disturbance of credit
there was distress all over the land. Business
| was affected anu SO general was the uneasiness
and apprehension that money which ought to
| be In circulation was being boarded.
| Credit was shaken o.such an extent that the
| fb.
| increase, and there appeared to be no power
| anywhere to furnish the necessary amount.
/ Even on the best securities money could only
be obtained upon call The distress consequent
| upon this condition OF affairs was general
throughout the land and that in the face of
lnexhaustlbie supplies OF perfect securities.
| ADVOCATES HIS BILL AS A REMEDY.
| The bill he was now considering proposed to
put the government in a condition to issue a
supply of money equal substantially to the gen.
eral demand, and to erect a standard BY which
the government might determine up to a
useful value of per cent what was the amount
| needed. This had never been attempted by any
government. The money Qegal-tender notes.
would be issued under the provisions of the BILL
upon unimpeachable and practically inc xhausti-
bic security and its supply was to be ascertained
and determined by the rate which the borrower
could afford to pay. Two per cent was the
amount to be paid to the government for the
L
worth more than per cent, the security being
practically inexhaustible, money would ALWAYS
be borrowed from the government and thus the
government would be able to discharge its duty
| and supply the general want. As borrowed
! money was not expected to lie idle. but to be
used, it would go into general circulation to
| supply the needs of business and its abund-
ance would stimulate not only the larger but
the smaller enterprises and industries on which
| so largely depended the steady employment of
|
prosperity.
MORE MONEY NEEDED.
| The matter of immediate and overshadowing
Importance was to supply the industrial wants
Of the people. For this purpose they should
| have more money, money based upon perfect
and unlimited security. No government could
| afford to issue money except upon a valuable
consideration. The value of government paper
was Its quality as legal tender, and the proposed
bill would strengthen it If the credit of gov
ernment OF g. 600 Goo of people with all its vast
| resources was not perfecD by the particular
security which the government would hold for
its return at the expiration Of the time fixed
| by the loan.
THE PRINCIPLE OF GOVERNMENT LOANS.
| The principle Of the government loaning
money was fully established by the advance it
now made upon its bonds, which, while en-
tirely good as between the banker and the gov
/
! the bill holder, which rested at last upon the
| authority Of the government. The scheme of
the bill was to supply an ample amount Of
money for all business purposes.
He had mentioned lands as security because
they appeared to be the best and most certain
of all security, and were sufficient to furnish
| all the money that was needed. The people
he thought would have more confidence in a
| financial measure that was new and radical if
it had at present land only for basis. The
| rat Of iyta
| was fixed at two per cent in the bill, but in
time might be reduced as experience should
teach. The rate Of interest charged by
the government under the provisions of
the bill would not necessarily fix the rate of in
terest for business purposes. That would
always be determined by its value i'm use. The
| farmer having this best security would bor-
| row for his own use, or the use OF others, who
might be willing to pay him a satisfactory in
| terest. The banker borrowed money from the
government free OF interest and loaned it at
| such rate as its use commanded in the market
NOT LIKE THE ARGENTINE REPuBLIc PLAN.
| Mr. Stanford went on to show wherein the
plan proposed by him differed from that
adopted in the Argentine Republic, to which it
had been compared. He would not Che said) at
this time consider the details of the bill The ma
chinery for putting itin operation could best be
| determined by experience. But the bill pro-
vided how it ought be put into operation with
| needed would be determined by the uses to
which moaey could be put at profit above per
| cent. Should the value of money for use under
any circumstances fall below per cent in that
case the money would be restored to the gov
| ernment and the mortgages released until
money would again readily command per
| cent. So far as he could ascertain no
government had ever attempted to fur
| nish an adequate supply Of money,
or to establish any standard by which it's want
could be ascertained. The bill fixed standard
| for the amount 30 long as money could be
profitably used at more than two per cent per
annum. The ability OF the government to
make money being unlimited upon
good security and the landed secur-
| ity of the government being substan-
tally unlimited the real wants and necessities
| Of the people could be ascertained and met.
The foundation Of the whole matter and the
| real question to be considered was that mas
much as the government reserved the right to
issue money, 1t was its duty--the means being
provided-to furnish what was necessary to
the prosperity OF the people.
THE BILL nErERRxD.
At the conclusion of Mr.. Stanfords remarks
the bin was, on his motion, referred TO the COM
mittee on finance.
REcIPRocrrY WITH CANADA AID MEXICO.
Mr.. Gray offered preamble and resolution
looking to the establishment Of reciprocity be-
A. 49, ~ -