The midland journal. (Rising Sun, Md.) 1885-1947, 1891-07-17
LOANS AT TWO PER CENT.
For Years Bankers Have Been Bor-
rowing From the Government.
IF IT is WISE TO LEND TO THE CAPT.
TALIsT WHY NOT TO THE
wEALTH.pRoDUc

WEALTH.PRODUCERS
In the face of a serious proposition,
put forth by men whose earnestness is
matched by no little ability, it becomes
us, as men, 20 give careful consideration
to the matter, and even to study it with
patience and candor. We have right
to assume that these advocates of 2 per
cent loans are lovers Of their country
and OF their kind, and that they are
honestly trying to do good.
The all important point with regard
to any proposed legislation, is the effect
that it will produce. Only as we are
able accurately to forsee the effect of
proposed law, are we qualified to oppose
or indorse it. To do this, it is neces-
sary to give to it our earnest, careful
attention. Let US try to do little Of
this honest work before we undertake to
pronounce snap judgment, which may
at once determine and advertise our
ignorance or our folly. 1t is said that
all reforms are first ridiculed. then toll
Grated and then adopted. What COM
mentary is this upon human wisdom.
tits pretty safe thing to take off ones
hat to any earnest man who is enjoying
a dispensation Of popular ridicule.
Let us suppose that the proposition is
to loan legal tender treasury notes in
sums of from $500 to $4,000, at 2 per
cent interest, to men engaged in the
business of farming, which loans are to
be secured by first liens upon farm
lands worth double the amount OF the
loan.
It may be remarked, first, that the
proposition that the government should
loan legal tender notes to indiyid-
uals is not new or strange one. 1t
has been for years the constant practice
of the government to loan such notes
freely upon the security ofbcnds, which
are certainly not better security than
real property. These individuals are,
however, called bankers and they bor-
row the money. not for the purposes Of
productive industry, but for those OF
usury. The government simply puts
the indispensable tool oftrade into their
hands and forces the wealth.producers
to pay them tribute. just as tyrants
used to farm out the public revenues,
SO now our government farms out the
the business Of supplying money. This
custom has the sanction of fnanciers
BY the whole banking fraternity of the
nation the principle is pronounced to be
just and the practice wise. It's sane
toned also by the two great political
parties. When all are agreed as to a
given practice, we may we'll deem il
wise, and esteem it settled fact that
the principle of government loans to
individuals, at low rate of interest,
and on good security, cannot be ques-
toned. 1t only remains to b, deter
mined what persons may borrow and
what security they may offer. Shall
bankers alone enjoy the privilege, and
bonds be the single form of security
that may be pledged? Why is this
limitation desirable or necessary? There
can be but one answer, which is, that
money may be kept scarce. 1t is,
doubtless, safe to lend money freely to
bankers, for they will not take more
than they can probably lend again. 1t
would not be polite for them to oyer
stock the market with their own partic-
ular wares. We have waited in vain
for the clear and conc Sc statement that
will plainly show how, why and in what
manner the mass of the people are ben.
Gifted by scarcity of money. Until
this statement is produced, we are jus.
titled in the assumption that the reverse
of this is true-that the wealth produc.
ers of the nation would be more pros.
porous, be able to live better and save
more, with an abundance of money in
circulation than with the present short
supply. That some other class would
be Strengthened by this changed con-
dition is possible, but if this be fact,
it has yet to. be we'll and strongly stated,
and made reasonably probable before it
can demand our notice. Now let us
try to look ahead little and see, if we
can, what would probably follow the
enactment into law of the proposition
we have stated. The first effect of such
law would be to reduce the rate of
interest from 6, as at present, to 2 per
cent per annum. Every farmer who
owed money, upon which he was pay
ing or more per cent, would propose
to get loan from the government at Q.