The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-11-10
SOMETHING BETTER
Than Any Substitute Offered for the Sub
Treasury Plan for Obtaining
Loans Upon Land.

BE 1t enacted Oy the OF the
United States, that whenever any cor
poratiOn, duly chartered by the State
in which the corporation is to nave It's
principle place of buslnees, shall de
post with the Treasurer of the United
States it's bond or bonds bearing 2 per
cent. interest for q sum Of not less than
$50, 900, secured by mortgages upon
land, said mortgages not exceeding
One-half the value of the land, covered
by the sC.mea as assessed for taxes; said
bOndO bonds b~eingduly authenticated
and deposited IS aforesaid together
with the mortgages securing the same
as cOllaterals. Then and in that event
the Treasurer of the United States shall
issue, to the corporation so complying,
intercOnvertable bonds bearing two per
cent. interest pay able SemIa annually IN
the currency of the United States. Pro
vided also that said bonds at the option
of the owner thereof when presented at
the Treasury of the United States shall
be exchanged at par for United States
Treasury notes, which shall be legal
tender and receivable for dues, public
o. private, except for those upon I'M
ports into the United States. Provided
however in no caSe shall the Treasurer
of the United States issue bonds as
aforesaid to any corporation present
ing securities a cOllaterals which are
based upon land which is owned by
any person or persons not citizens of
the United States 0 upon land IN eX-
cess of 1000 acres the property Of one
Individual or corporation
In presenting the foregoing plan for
distributing money from the Treasury
&c A.. TT~,k1l -. 41~ - fln ON,--n
the writer would mOdestly claim for it
superiority over any substitute he has
seen offered for the Sub-TreaSury plan.
A serious objection to the plan pro
posed by eX Senator Norwood and
others, Ito make the distribution
through the agency of the States"
arises from the fact that the funds
would be used for partisan ends even
if distributed through system of State
banks.
ANY financial measure to be accept
able should be constitutional, equitable
and practicable. Granting for the sake
of argument (what the writer does not
believe) that the United States Gov
eminent is prohibited by the COnstitu-
ton from making loans direct to indi
vidualS," no man could bring that as
an objection to the plan suggested.
The pracIicability of the government
basing its credit upon a few acres of
land scattered here and there may be
called III question, but if the number
of acres be increased to thousands ard
the same be bonded for fifty per cent.
of their value as assessed for taxes, can
any sane man deny to land 50 situated
its recognition as available capital, or
- +InrA - Cfn+ncr1nn ~ with tho
congressional ~precedentS before him,
who will say that lands 50 circum-
stanced Is not an acceptable basis for q
governmentlOan? The plan isequItable,
not disturbing or encrOaching upon the
rights of others and is no more class
legislation" nor "paternalism than
that recommended by the National
Bankers Association of deDOsiting cor
pOration bonds of cities and railroads
with the Treasurer Of the United States
security, upon which the govern
ment shall loan itscredit to the corpora
ton depositing them, in order to float
their bank paper CurrencV. but is a
great deal safer, because cities may be
burned down or pass under the munich
pal control of factions which may loot
their treasures and destroy the value
of it's real estate, thus rendering it's
bonds worthless, but land can neither
be burned UP made away with,
which constitutes it the very safest
basis for securing loans.
AS to the praCtiCability and availa-
bility of the plan the writer would sub
NIT that no sensible man doubts the
of land security, but objects to
it because of its want of availability,
being properly hedged about by the
statutory enactments OF the States in
ich it lies. it is a security which
cannot be readily realized upon, hence
with the trading world it is in disre-
as such. This Objectionable fea-
ture is at once eliminated by the fore
going plan. AS an illustration say in
drviduals A. B. @. D. E. and others de
sire to organize a stock company for
banking, merchandising, manufacture
ing or engaging IN any other industrial
enterprise. with a capital of 500, 900.
Now A. and BIS wealth consists in
money and they subscribe to amount
of $4,000 and pay in the cash, but G..
d. +. and others wealth consists in
land which IN the aggregate amounts
to $50, 600 at One-half the value as as
SeSSed for taxation, upon which basis
they severally mortgage their land to
the company in payment for their re-
spective subscriptions and like A. and
B. receive their certificates of stock.
The company desiring to convert all of
its assets into money executes its bond
an amount equal to the sum of said
mortgages and deposits the bond and
mortgages a collateral security with
the Treasurer Of the Unite / States and
receives in lieu thereof United States
Fnterconvertible bonds which are e
changed for Treasury notes thus max
ing the entire capital of the company
available, and @. D. and E. capitalize
their lands into dividend bearing
assets. The plan is self adjusting or
flexible, for whenever a corporation at
certain season of the wear did not