New-York tribune., 1890-05-24
The conferees decided upon limitation OF the inhibited
combinations.
IOANING MONEY ON AGRICULTURAL LANDS
SENATOR STANFORD EXPLAINS HIS NOVEL FL
yANCIAL SCHEME.

woshncton Nav % (spccIal).-Mr Stanford. OF
Co,,,ornIa made a speech in the Senate to-day IN
which he set forth somewhat in detail the theory anu
probabIe workings of his bill for the loaning Oh
money from the Treasury on agrculCWai i'''
Tbese loans are TO bear per cent interest," anu Il
specal bureau is TO be created U look aitcr 'ie
nacinc Of the obligations under proper safeguards
a ostrictions The California Senator's project has
,.cted some attention throughout the country, and
ho has now had IL formally referred to the senate
Finance Committee. Mr.. stanford read what ne had
10 saw from printed slips, and was listened 10 WIN
close attention by number OF his colleagues AS nc
said himself to-day, his scheme is an ehtireT mover
one In the legislation of this country ana IL clho'
he expected to make its to favor Immediately. or
,.ho,,, q creat deal of calculation and illumination
Mr. stanford said that the bill confines Its provisions
for loans to agricultural lands, but In time they Will
probably be extended TO some other KINDS oil property
and even TO municipalities. But Tor uic present
he wanted the loans limited to agricultural lands'
He then considered the practical question OF how 10
furnish sufcency Of money, and outlined the pr1nci-
pal features of his bill-the Government 10 answer
unon agricultural property, Independent OF improve
ments al per cent per annum interest. lhat Is inc
best security that can be offered Inc important
point is that the money should be stamped ny gov
erpment whose credit Is unimpcachable The next
important consideration, how can tho government
without injury itself place the money In circula
ton can be accomplished by taking agricultural lands
a. security upon the terms prescribed In the BILL
No pressure for redemption can DO brought 70 BEAR
a. only those who arc ready TO have their mortgages
released can make a claim the Government. The
Government loans its credit to the individual, In
order that the whole people may have a sufciency Of
money with which to prosecute their business. The
money issued under the provisions Of the bill shall
be legaltender for al debts public and private cN-
cept interest the National debt and redemption OF
National notes. There is no analogy between this
scheme and any other financial proposition that was
ever suggested. The money issued is not intended
TO accommodate the farmer alone, but as II comes into
circulation IL will put the Of prosperity within
the reach Of those who are engaged III the smaller
and larger Industries Of the country.
lie argued that the rate OF interest proposed-2 per
cent-s fixed for good No farmer will
borrow unless lie needs the money and when he
ceases TO have for II Will return H. But this will
seldom occur, for money borrowed OF the Government
other interests and thus the farmer Will be benefited
4 u per cent interest Is a burden that the farmer
cannot well bear, while owing 10 the a, tyities Of
business q merchant hnds IL a reasonable rate 10
pay. This plan Of loaning money on land az = per
cent with the privilege 10 the borrower Of returning
IL when he has no use for II creates monycd system
that Will meet financial expansion and contraction A.
they may occur without inconvenience 10 any Under
the provisions the real estate Of the country being
vast. there viii always hc tho possibility of obtaining
the money necessary Ia carry tho enterprises Of
the country. aud when there Is further for the
money tie borrower stops paying interest and takeo
up the mortgage upon his farm.