The Globe-republican., 1890-12-24
sTANFORUs SCHEME.

The California Senator Gives His Views On
Measure For Financial Relief-A Lean
Based Upon Land Values.
/; WASHINGTON, Dec. 2O-Mr. Stanford
addressed the Senate the first thing
yesterday in explanation Of the advisa-
bility of the bill introduced by him
December to provide the Government
with means sufficient to supply the
national want of sound circulating
medium. 1t was substantially, he said,
| the same bill as he had introduced last
session and he had not much to add to
what he had said on the subject on that
occasion. But the bill was very i'm
! perfectly understood and as the subject
was very important one he desired to
explain it still further. The bill l
am now considering" he said, proposes
to put the Government in a condition to
| issue supply Of money equal
| substantially to the general demand
and to erect a standard by which the
Government may determine up to a use.
full value of per cent what is the
amount needed. This has never been
attempted by any Government The
money Qegal tender notes. will be is
sued under the provisions of this bill
upon unimpeachabe and practically in
| exhaustible secur ty and is SUPPLY is as
certain and determined by the rate
| which the borrowec can afford to pay.
Two per cent. is the amount to be paid
to the Government for the loan of its
| money, and so long as money is worth
more than 2 per cent, the security being
| practically inexhaustible, money will
always be borrowed from the Govern
ment and thus the Government will
be able to discharge its duty and
supply the general want AS bor-
rowed money is not expected to lie idle
but to be used, it goes into general Cir
culation to supply the needs Of busi-
ness and its abundance stimu ates not
only the larger but the smaller enter
pr ses and industries on which so large
ly depend the steady employment of
abor with its natural consequence.
general prosperity. The matter of inn
mediate and overshadowing Importance
to us is to supply our own industrial
wants For this purpose we must have
more money-money based upon per-
ect and unlimited security. No Gov
''rnment can afford to issue money ex-
cept upon valuable cons deration.
The value of Government paper IS its
quality as legal tender and the proposed
Dill would strengthen this paper OF
the credit of Government of 62. OOO.-
100 of people with all OF our vast re-
;ources is not perfect) by the partial Sc
:urity VIII ch the Government would hold
orits return at the eXpirat on of the time
Ixed by the loan. The prime pie of our
government loaning money fullyestab-
shed by the advance it now makes upon
IS own bonds, which. while entirely good,
S between the banker and the Govern
nent does not strengthen the security
of the bill holder which rests at last
upon the authority of the Government
The scheme of this bill is to sup
oily an ample amount of money for
I'll purposes have mentioned the
ands as security because they appear
be the best and most certain of all
,ecurity and are sufficient to fur
iish all the money that is needed.
The people. think, will have
uOIc COuuutucc III uuduCldA iuCoSuE0
hat is new and radical if it has al pres
mt land only for a basis. The rate of
interest on these loans on real estate is
xed at 2 per cent. in the bill. but in
ime may be reduced as experience shall
each. The rate of interest charged by
he Government under the provisions Of |
his bill will not necessarily fix the
reneral rate of interest for business |
purposes. That will always be deter
mined by it's va ue in use. The farmer
.aving this security will be proud of its
Use or the use of others who may be |
Ling to pay him satisfactory inter |
st. The banker borrows money from the |
Government free Of interest and loans it |
It such ra te as it's use commands in the ]
market This measure has been COM !
pared to plan adopted in the: :Argentine |
Republic for loans on land. but there is |
no analogy between the two and to COM |
pare the workings of a measure of that |
Republic of say 5000, 900 of people to |
hat of our country with it's enl. ghtened |
j2, 600. 600 would be like comparing the |
methods of some irresponsible banker |
TO those of the Rothschilds. This bill |
fixes standard for the amount so long |
as money can be profitably used at more |
than per cent. per annum. The ability |
Of the Government to make money being !
uni im tied, the real wants and neces- |
sites Of the people can be ascertained
and met The foundation of the whole !
matter and the real question to be con-
sidered is that inasmuch as the Govern
ment reserves the right to issue money |
t is its duty, the means being provided.
to furnish what is necessary to the pros |
perity of the people"
BELIEVED TO BE CRAZY