The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1891-03-27
sTANFoRD's LOAN BILL.
An Argument In Its support and Some
Other Pointers on Money.


other Pointers on Money.
Senator Stanfcsd proposes that per-
ssns owning land-which is the founda-
tiun upon which all industry rests in civ
iiised society-shall be supplied by the
rovernment with n convenient medium
Of exchange, to represent portion of
iHB real value, upon such easy terms as
- snable him to prosecute his labor eco
uumically and with greater facility,
tAsreby increasing his products and Civ
hg employment 10 needy workingmen.
Bo proposes that land owners shall be
Auxuished with medium Of exchange,
xspresenting q portion of the actual cash
value of their Land, upon giving lien
upon the whole of it as security for its
return at a certain date, and pay the gov
eminent the moderate rate of per cent.
psr annum interest for its use. Thus in
twenty years the government gets 40 per
esnt., besides the original loan-a source
a profit to the nation which no other
issne Of money affords.
The farmer, whose land is now mort
eaged at or Sper cent. interest, has
snwed or 6 per cent. by securing the
government loan, which, on $4,000, is
IN annual saving of five or six hundred
dollars-and the national treasury gains
a* the rate of 500 year on every sum
Of that amount. This is pleasing con-
trast to the $40O per annum the govern
n,ent pays to the national banks, interest
on the per cent bonds on which it
issues the notes, which form large por-
ton of our circulating medium, and on
which the banks get or 10 per cent. in.
terest from short loans.
Here we see the land owner saves
money, the government receives money
instead of paying it out, and abundance
and prosperity prevails among all classes
except the capitalist, who grows rich
by breeding money as the farmer breeds
pigs, instead of earning it in productive
industry as the creator intended all
should do. Hence, the class who gain
wealth by letting out money at interest
oppose this liberal measure of Stan
ford from no other motive but selfish
ness-unless it is fear that the mass of
people, who have always been kept near
ly at starvation point for money, will
foolishly gorge themselves by overfeed-
ing, if fully supplied for all their indus
trial necessities. They are so afraid the
common people will have too much
money! They have no such fear con-
corning themselves. Oh, no; they are
fortified against such danger by being
accustomed to it.
Perhaps the people when they get
used to having an abundance will feel
safe also. They could not do worse than
the Barings in their recent speculations.
Everybody can do as we'll as they did.
At all events we do know that when
that condition prevails they will not have
to struggle fiercely with their fellow
men to secure enough to sustain life, as
they now do. AS if people could have
too much good money! Is money too
precious for common folks to have in
abundance? Why should not money be
a abundant as food and clothing? The
latter costs money earned by labor. Is
money more sacred than food and cloth
ing, houses and lands bought with it?
II is to many, because money is their god
above all other gods. To them gold is
eod and king!
There is no similarity between Stan.
ford's plan and the cedulas of the South
American republics. There the banks
loaned money on land certificates equiv
alent to mortgages), and the govern
ment merely guaranteed the interest.
No new money was issued by the gov
eminent, nor did the latter derive any in
como from it, and the people only tenn
porary benefit. The people, however,
showed themselves no bigger fools than
The bankers, and both together proved
too smart for the European bankers, like
the Barings and others, for they got the
money the latter lost
And, by the way, this great panic and
tremendous sacrifice of private fortunes
BY bankers and other usurers and specu-
htors all grew out of the scarcity Of
gold-the only 'money" recognized by
them. "There was not enough to go
round" in such lively deal, and so we
were treated to the laughable spectacle
II the greatest ''fnanciers" of little Eu-
rope carting gold from Paris to London
10 brace up the bank of Barring Bros.
(which must be carted back again), and
chipping part of it to New York to
give strength to the money market
there, to prevent the whole lot of gold
vorshipers from going down in one uni
versal crash. This lesson ought to con-
vince even the most stupid fnanciers
hat there is not gold enough in the
world to supply the demand as single
standard of value and exchange, and
shat there is an imperative necessity to
,estore silver to its former position as a
standard equal with gold.
But that measure would not provide
N abundance of money. 1t would only
essen the amount of credit which peo-
,le are forced to use in their business
transactions for the want of money to
AXE its place, The circulating medium
n every civilized community should be
nfficient in volume to meet all demands
without resorting to credit in ordinary
business transactions. Treasury notes
.ssued to farmers and other land owners
. long loans, drawing low rate of in
crest would sunnlv tha daynopJ Mo-.