, 1890-12-20
sTANFORD'S SCHEME.
The California Senator Intro
duces a Bill
To Loan Money Directly to
the People.
The Rate of Interest Fixed at
2 Per Cent.

WASHINGTON. Dec. l9.-After routine
business Stanford addressed the senate on
his bill to increase the circulating medium.
He said that money was the most impor-
tant factor in the business relations of the
country. There was a limit to the guam
tity of gold and silver metals. and that
limit could not be exceeded by any effort
on the part of the government. IL was,
therefore, a great mistake for the govern
ment to confine itself In the issue of
money to material outside of its control
andllimited in quantity. On the sufici-
encY of money depended very largely the
industries of the country. An illustration
OF its importance was to be found in the
present depressed financial condition.
Never was the country more prosperous,
yet owing to the want OF money Upon a
slight disturbance of credit there was DIS
tress all over the land So general was
the uneasiness and apprehension that
money which ought to be in circulation
was being boarded. The bill he was now
considering proposed to put the govern
ment in a condition to issue a supply OF
money equal, substantially, to the general
demand, and to erect a standard bY which
the government might determine what
was the amount needed.
Money and legal tender notes would be
issued under the provisions of the bill
upon unmeasureable and practically mex
haustible security. and its supply was TO
be ascertained and detertnined by the
rate which the borrower could afford to
pay. Two per cent was the amount to
be paid to the government for the loan of
its money. And so long us the money
was worth more than 2 per cent, the Sc
curity being practically inexhaustible, the
money would always be borrowed from
tle government. and thus the govern
ment would be able to discharge its duty
and supply a general want. The princi
pie of the government loaning money was
fully established by the advance il now
had made upon its own bonds, which,
while entirely good between the banker
and the government, did not strengthen
the security of the bill holder, which
rested at last upon the authority OF the
government
The scheme of the bill is to supply an
ample amount of money for business
purposes. | have mentioned lands as
security because they appear the NEST GER
tain of all security and are sufficient TO
furnish oil the money needed. The peo
pie. | think, will rave more confidence in
a financial measure that is new and radi
cal if it has at present land only for a
basis. The rate of interest on these
- f--i - = PEI cent
IN the bill, but in time it may be reduced
as experience shall teach. The rate OF
interest charged by the government un
der the provisions of the bill will not ne
c~essarilY hx the general rate Of interest
for business purposes. That will always
be determined by its value in use. The
farmer having the best security will Dor
row for his own use. or the use of others
who may be wiling to pay him s~atisfae-
tory interest, The banker borrows money
from the government free of interest, and
loans 1t At snch rate as its use commands
in the market.
This measure has been compared to
the plan adopted in the Argentine Re-
public for loans on land. but there is no
analogy between the two and to compare
the working of a measure of that republic
Of, say 5000, 600 of population to that of
our country with its enlightened GO. 000.-
600, would be like comparing the methods
of some irresponsi lie banker to those Of
the Rothschilds. The bill fixes the
standard amount, SO long as the money
can be pro6tablv used, at more than .
per cent per annum.
The ability of the government to make
money being unlimited. the real wants
and necessities of the people can be ascer-
taiued and met. The foundation of the
whole matter, and the real question to be
considered is, that inasmuch as the gov.
eminent reserved the right to issue money,
it IS its duty-the means being provided
to furnish what is necessary to the pros
perity of the people.
At the conclusion of Stanford's re-
marks the bill was referred to the com
mittee on finance.
Tho senate then took up the de-
iciency printing bill, on which some
discussion took place rejecting on
the house for the i~nadequacy of
the regular appropriation bills, thus
uecessitating frequent deficiency bills. The
bill passed.
The bill by ingalls, to allow the exchange