Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1890-05-30
Which Provides For the LOaning OF
Government Money to the Far
mers at 2 Per Cent.
A Haevy Rain and Electricl Storm
in Penn -ylv MIA Does
Great Damage.
An Immense Cloud Burst in Ohio
Floods Twenty Miles of
Country.
Our Washington Budget,


WASHINGTON, May 23.-In the senate
Mr.. Faulkner gave notice of an amend.
ment to the bill relating to liquors i'm
ported into prohibition states, providing
that such liquors shall be considered as
incorporated as a part of the common
mass of property within the state and
subject to the regulation, control and
taxation in the exercise of the states .po-
lice power.
The tariff bill was received from the
house and referred to the committee on
finance.
The Senate bill for a public building
at Racine, Wis, the cost not to exceed
100000, a reported and placed on the
calendar.
GOVERNMENT LOANS.
MI. Stanford addressed the senate in
advocacy of the bill introduced by him
some days ago, providing for loans by
the government on agricultural lands.
We can all we'll understand, he said, the
great advantages to the people at this
time of a loan made to national banks
by the government of 80 per cent. upon
its own securities. One hundred thou
sand dollars of government bonds at 4
per cent. only produces $4,000, yet when
its value becomes energied to the value
of 80 per cent. (Which the government ad-
%vances) its power is SO increased that
$4,000 in its activity may in the course
of a 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 a corresponding
energizing effect. Money issued under
it is not intended to accommodate the
farmer alone, but as it comes into circu-
lation, it will put the means'of prosperi-
ty within reach Of those who are engaged
in the smaller and larger industries
of the country. This none
issued by the government be-
comes automatic. It will contract when
there is less use for it, and expand
when there is great demand; thus a dis
astrous financial contraction will cease
to be possible. He argued that the rate
Of interest proposed-two per CENTS
fixed for good reasons. No farmef will
borrow unless he needs the money, and
when he ceases to have use for it will re-
turn it. But this will seldom occur, for
money borrowed of the government at
two per cent. can readily find use at a
higher rate in other interests, and thus
the farmer will be benefited. Six per
cent. interest is a burden which the far
mel cannot we'll bear, while owing to &C.
tivities Of business a merchant finds it a
reasonable rate to pay. The value of
money lies in it's activity. This
plan of loaning money upon land at 2
per cent. with privilege to borrower Of
returning it when he has no use for it,
creates a monied system that will meet
financial expansion and contraction as
they may occur without inconvenience to
any. Under its provisions, real estate
of the country being so vast, there will
always be a possibility of obtaining the
money necessary to carry on the enter
prises of the country, and when there is
no further use for the money, the Dor
rover stops paying interest and takes up
the mortgage on his farm.