Los Angeles herald., 1890-12-20
Stanford Elucidates His FL
nancial Scheme.
Senator Stewart Opposes the
Force Bill
The Inconsistency of H0ar and Other
Republicans:ExpOsed.
President Harrison Subjected to Severe
Personal Criticism for His
Financial Policy.
Associated Press Dispatches.


WASHINGTON, Dec. 19.-In the senate,
today, after routine business, Stanford
addressed the senate on his bill to in
crease the circulating medium. He said
money was the most important factor in
the business relations OF this country
There was limit 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, great mistake for the gov
eminent to confne itself in the issue
of money to materials outside of its con-
troll and limited in quantity. On a suf-
ficiency of money depended very largely
the industries of the country. An illus
tration of its importance was to be found
in the present depressed financial condi-
ton. Never was the country more pros
porous, yet, owing to the want of money,
upon a slight disturbance of credit,
there was distress over the land.
So general was the uneasiness
and apprehension that money which
ought to be in circulation is being
boarded. The bill he was now consider
ing, proposed that the government
should issue a supply of money equal,
substantially, to the general demand.
Money illegal tender notesl would be is
sued under the provisions of the bill,
upon unimpeachable and practically in
exhaustible security, and its supply
was to be ascertained and determined
by the rate which borrowers could af-
ford to pay. Two per cent. was the
amount to be paid to the government
for the loan of its money, and so long as
money was worth more than per cent,
the security being practically inexhaust-
ible, money would always be borrowed
from the government, and thus the gov
eminent would discharge its duty and
supply the general want. The principle
of the government loaning money was
fully established by the advances it now
had made upon its own bonds, which,
while entirely good between bankers
and the government, did not strengthen
the security of the bill-holder which
rested at last upon the authority OF the
government.
Continuing his remarks, Stanford
said: "rhe scheme of the bill is to
supply an ample amount of money for
business purposes. l have mentioned
lands as security, because they appear
the best and most certain of all security,
and are sufficient to furnish all the
money needed. The people, l think,
will have more confidence in financial
measure that is new and radical, if it
has at present land only for its basis
The rate for interest on these lands is
hxed at 2 per cent. in the bill, but in
time may be reduced as experience shall
teach. The rate of interest charged by
the government, under the provisions of
the bill, will not necessarily fix the gen.
eral rate of interest for business pur-
poses. That will always be determined
by its value in use. The farmer having
this best security will borrow for
his own use or the use of others who
may be willing to pay him satisfactory
interest. The banker borrows money
from the government free of interest,
and loans it at such rate as its use
commands in the market. This meas
ure has been compared to the plan
adopted in the Argentine Republic for
loans on land, but there is no analogy
between the two, and to COM
pare the working of meas
ure of that republic Of, say
five millions population, to that of our
country, with its enlightened siXty-two
millions, would be like comparing the
methods of some irresponsible banker
to those of the Rothschilds. The bill
forces the standard for the amount so
long as money can be profitably used, at
more than 2 per cent. per annum. The
ability of the government TO make
money being unlimited, the real wants
and necessities Of the people can be as
cersained and met. The foundation OF
the whole matter, and the real question
to be considered, is that inasmuch as
the government reserves the right to
issue money, it is its duty-the means
being provided-to furnish what is neces-
sary to the prosperity of the people,"
At the conclusion of Stanford's speech
the bill was referred to the committee
on finance.
MISCELLANEOUS BUSINESS.
The senate then took up the printing
of the deficiency bill, on which some
discussion took place, rejecting on the
house for inadequacy in the regular ap-
preparation bill, thus necessitating fire.
quent deficiency bills. The bill passed
A bill by Ingalls,, to allow the ex-
change of interest bearing bonds for le-
gal tender notes, was referred to the
finance committee.
A resolution by Manderson was re-
ferred to the committee on Indian af-
fairs, instructing that the committee
inquire into the condition of the Indian
tribes of North and South Dakota, Mon
tana and elsewhere, whether steps were
necessary to disarm them, etc.
The senate bill for public building
at Fresno, California, ($75 5,000), was
placed on the calendar.
THE ELECTIONS BILL.
The elections bill was taken up and
Bate and Gibson argued against it.
Stewart made an argument against the
bill on the ground that an attempt to
execute it in the south, would be disas-
trous to both races. He was friend OF
the colored man ,and deeply sympathized
with him, but could not aid him to
put his life in jeopardy in order to fight
a political battle for his (Stewart's) ad-
vantage. He was equally friend to
the white man, and desired to refrain
from any act which might tend to iusti-
fy the white man in making war upon
a defenseless race which congress en-
franchised. Whatever was done in the
matter of the protection of the suffrage
in the south, unless done through the
voluntary action of the people of that