The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1891-12-04
AhElANGls q DEI
A Guilford Nan On Something
Better
Than ANY Substitute offered for the
Sub treasury Plan for Obtain
ing Loans Upon Land.

Sub-Treasury Plan for Obtain
+ ing Loans Upon Land.
, BE it enacted by the Congress of tb
United States, that whenever any corpt
!, ration, duly chartered by the State i
which the corporation is to have its priu
cipal place of business, shall Geposit win
the Treasurer Of the United States IL
bond or bonds bearing Q per cent. inter
est for sum not less than ESQ, 600 90
cured by mortgages upon land, said mort
cages not exceeding one-hslf the yalu
ct the land covered by the same as osse,s
cd for taxes taid bond or bonds beino
duly authenticated and deDosited a,
! af2resaid together With the mdrtgages SO
in that event the saY Yurer of tho rnitcd
States shall issue, e. fhe corporation SO
complying, interconwrtable bonds bear
ing per cent. interest payable semi
annually in the currency of tho United
States. Provided that said bonds at the
| option OF the owner thereof when presen-
ted Mt the Treasury of the United States
shall be exchanged a. par for United
States Treasury notes, which shall be lc.
gal tender and receivable for dues, public
or private, except for those upon imports
into the United States Provided how
ever in no case shall tho Treasurer of the
United States issue bonds as aforesaid to
any corporation presenting securities as
coiatcrals which are based upon land
which is owned by any person or persons
not citizens of tho United States nor upon
land III excess Of 900 acres the property
OF one individual or corporation.
In presenting the foregoing plan for
distributing money from the Treasury of
the United States among the masses, the
writer would modestly claim for it supc-
riority over any substitetc tv- -fyas sSsH7os-.
Tered for the Sub-Treasury plan A Sc
rious objection to the plan proposed by
ex-senator Norwood aud Others, "to 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 a system
of State banks.
Any financial measure to be acceptable
should be constitutional, equitable and
practicable Granting for the sake of
argument (what the writer does not be-
lieve) "that the United States Govern
mcnt is prohibited by the Constitution
from making loans direct to individuals" :"
no man could bring that as an objection
to the plan suggested. The practicability
of the government basing its credit upon
few acres Of land scattered here and
there may be called in question, but if
the number of acres be increased to thous-
ands and the same be bonded for so per
cent. Of their value as assessed for taxes,
can any sane man deny to land SO situa-
ted its recognition as gNpilable ea)ital, or
is there q statcsrj nv, y witt the con,
'fsii loan rnc psslf is lE6S n.s afS{.
ing or encros ching upon rights OF
others and is no more "class legislation"
nor upaternalism" than that recommen-
dcd by the National Bankers Association
of depositing corporation bonds d cities
and railroads with ths Treasurer Of Ne
United States as security. upon which
the government shall loan its credit 10
the corporation depositing them, IN or
der to float their bank paper currency,
but is great deal safer, because cities
NAV be burned down or pass under the mu-
nicipal control of factions who may loot
their treasures and destroy the value OF
its real estate, thus rendering the BONDS
worthless. but land can neither be burned
| nm or made away with, which constitutes
il the very safest basis for securing loans
AS to the practicabilty and avallabili
} tv of the pIan the writer would submi
tIot M .nneib,e man dorhts .hc snec!y o
land security, but objects to it because o
Of the stasss III being od"twent pIDpeu
rity which cannot beE lies. Il Is d secu
upon, hence with the trading wurru..-.-.
in disrepute as such. This objcctionabl
feature is at once eliminated by the for'
going L,lan. AS an illustration say ind
viduais A B. G. d. E. and Others desil
to organize n stock company for bankiD.
/ merchandising, manufacturing or eng
ging in any other industrial cntcrDris
with capital of 800, COO Now A. an
= BIS wealth consists in money and the
subscribe 70 amount of 5000 and pa
, in the cash, but c. e. and others wcait
consists in land which in the aggrcgat
amounts to $50, 900 at one half the valu
as assessed for taxation, upon which bas
: they severa lily mortgage their land to Il
Z company in payment for their respeCti>
i subscriptions and like A, and b. rccei,
s their certificates OF stock The comIar
desiring to convert all Of is assets in
money executes its bonGfor an amour
equal to the sum of said mortgages al
deposits tne DOuu ana mortgages us C'
lateral security with the Treasurer of Il
# United States and receives in lieu there
United States interconvc;tiblc bends whi
are exchanged for Treasury notes III
8 making the entire cap tal Of the compal
e available, and G.. d. and j.. capitali
!, their lands into dividend beariug asset
q The plan is selfad djusting or infcxib
J. for whenever a corporation at n certa
y season of the year did not need its fun,
'r it would be possessed of two ways Of I
lieving itself Of the redundancy, eth
q by loaning the surplus at n low rate OF
q tcrest to its stockholders upon their ct
tificatcs of stock as collaterals (many
le them being farmers would be likely
IN to need money to carry on their farmi
$ operations about the time of the ycaI
TO surplus began to accunulatc) Or if
u other safe investment was open to I
az company it could return tie surplus
T. the Treasurer of the United States n
ht receive an inconreriihle bond whi
ne s STOP ihe FSg.eait Goo 'su.s ;aL?ste int
:" v-ayerta0!s DCYid De ~ same int