Los Angeles herald., 1890-05-24
Stanford Explains His Land
Loans Bill.
Cheap Money for the Farmers
and Lots of 1t.
The House Further Considers the
River and HarbOr Bill.
The Republican Majority in the House
to Be Increased by Two-Other
Capital Cuttings.
Associated Press Dispatches.

Associated Press Dispatches
WASHINGTON, May 23.-In the senate
today consideration of the naval appro-
priation bill was resumed and continued
until O'Clock, when the silver bill was
taken up; but in a few minutes it was
laid aside to allow Senator Stanford to
address the senate on his bill providing
for loans by the government on agricul-
tural lands.
"We can all well understand" he
said, "the great advantage to the people
at this time of the loan made to national
banks, by the government, of ninety per
cent. upon its own securities. One hun
dred thousand dollars of government
bonds, at four per cent, only produce
$4,000, which, when it's value becomes
energized to the extent Of ninety per
cent. (Which the government advances)
its power is 80 increased that the 500, 900
in 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 corresponding
energizirg effect. The money issued
under it is not intended to accommodate
farmers alone, but as it comes into cir
culation it will put the means of pros
perity within the reach of those who are
engaged in the smaller and larger in
dustries of the country. This money
issued by the government becomes auto
matte. 1t will contract when there is
less use for it, and expand when there
is greater demand. Thus disastrous
contraction will cease to be possible"
He argued that the rate of interest
proposed, 2 per cent, is fixed for good
reasons. No farmer will borrow unless
he needs money, and when he ceases to
have use for it he will return it. But
this will seldom occur, for money bor-
rOwed of the government at per cent
can readily find use at higher rates in
other interests, and thus the farmer will
be benefited. Six per cent interest is
burden that the farmer cannot we'll
bear; while, owing to activities of bust
ness, the merchant finds it reasonable
rate to pay. The value of money lies
in its activities. This plan of loaning
money upon land at two per cent, with
the privilege to the borrower of return
ing it when he has no use for it, creates
a amoneyed system that will meet financial
expansion and contraction, as they may
occur, without inconvenience to any.
Under its provisions, the real estate of
the country being so vast, there will
always be 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 bor-
rover stops paying interest and takes up
the mortgage upon his farm.
In conclusion he said: "The bill,
while not perfect, provides fairly well
machinery to carry out its designs. If
adopted with such amendments as shall
seem wise to congress, it will largely in
crease the prosperity OF the humblest
classes in labor and assist the wealthier
to success in their enterprises. The bill
provides for what may perhaps not i'm
properly be termed revolution in
finance, and do not expect that it will
be adopted until it has been fully con-
sidered by the people and met with
their approval. l move that the bill be
referred to the committee on finance"
The bill was so ordered.
The naval bill went over.
Call offered a resolution calling on the
president for information as to the land
ing of an armed force from a revenue
cutter at Cedar Keys, Florida, the forci-
BILE entry of houses and the pursuit Of
citizens.
On motion of Edmunds it was laid
over.
After executive session the senate ad-
journed.
The tariff bill was received in the
senate this afternoon and referred to the
committee on finance.