The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1891-09-16
LIGHT ON A DARK SUBJECT.
REPORT OF THE SENATE COMMITTEE ON
THE sUB-TREAsURY BILL.

| Idb SUb-Ih6ASUhf BILL.
Submitted i'm the Senate of the
by Senator Morrill,. from the Conn
mIttee Oh Finance.
The Senate bill (452S) entitled "a bill to provide
the Government with means sufficient to supply the
| national want of q sound circulating medium, ap-
pears t0 he intended to supply Il paper lesal-tendcr
currency by permitting any owners OF land to give
lien upon the for ~ years 10 the United States
Government, for which the m0rlgagQr is 10 receive
lcral-trndrr paper currency and be charged per
cent. interest thereon This measure is OF unlimited
magnitude and demands serious consideration from
the high and cstimabc character OF It's distinguished
author. Several bills and petitions have been presen.
ted from other sources equally ambitions, intended
TO cure all financial evils from which the nation is
supposed to suffer- and mainly differing from the bill
here considered in offering agricultural products Tor
security instead of land.
The bill of course appeals to the Of land
for its support It could not be made available to
any other class, not To mechanics aud labOrers, much
less tn merchants and manufacturers. Landowners
for much the larger part it is believed, too intel
ligrnt and prudent conduct their affairs In such
manner rs p he compelled to their homestead
with mortgage. EVEN yonns men Mt starting In
life, when borrowed capital is useful and necessary
do intend to Orcain long in debt, certainly not for
20 years.
if the opportunity were offered to all land owners
to obtain loan at even less rate than our own or
nny national government now pays, II is possible that
it uni gh inspire improvent habits and cNtravagant
speculative ventures in the class of our country
mcl almost exempt from such temptations.
The bill we have under consideration Is plainly
founded on the principle put forth than CEN
tury ago by the notorious John Law, which Is set
forth in the following terms:
That II paper currency, not convertible into
specie be- based secured upon any article OF value,
such land. aud be issued to an extent not greater
than the vnlnc in specie Of such article, such paper
currency will not be deprecated in comparison to
specie"
This certainly. embodics the leading principle Of
the bill upon which this report is based, that Is to
say, of making land property security for national
loans and also for an unlimited issue OF legal-tender
circulation uf paper money.
RECKLESS FINANCIAL EXPERIMENTS END IN
BASKRUPTsY AND NATIONAL DISASTER.
Many persons may be captvated with tho Plausi.
bic ide: Of obtaining cheap loans and plenty Of money
easy terms but the experience or enlightened no
tions shows wherever such reckless financial expert
ments have been tried nat they have ended In COM
mercia crises bankruptcy, and general national dis
aster The principle is unsound and can not bring
forth good fruit.
lLL-BoRN NATIONAL EXAMPLES.
1t may not be improper to refer briefly to some OF
the i-born national examples wbich' conclusively
demonstrate the ineXpedence that hos always aten-
ded a such measures, and their hnal rulnous catas-
trophc.
The Mississppi scheme was started in Paris In l1lI
by John LAW embracing trade and other privileges,
and finally analgaInated with the national bank,
which issued on immense amount of paper. Law
had promised annual returns OF l2O per cent. Ihe
stock at first lose to IN enormous premium. Upon
the issue OF $4,000 new shares there were SOOOO ap
plcants. Soon, however, gold began to be boarded,
and though laws were passed to punish all persons
who were found in possession OF o sum beyond
fixed amount, large sums were sent out OF the coun-
try. to Belgium and England, for sae Keeping. In
lT20 the hank stopped payment and the whole
scheme collapsed. bringing ruin upon all of the great
multitude who hnd unwisely put iaiih 10 tne naan;
cial suundness and integrity of the Mississippi
scheme. Law Immediately fled the country.
THE FRENCH PLAN.
The insurnountable disorder Of the French hnan-
ces and annual excess Of expenditures beyond re-
ceipts without doubt was the ilrst cause OF the
French Revolution. Fresh loans % were required Ior
the treasury every year. The mobiles and clergy
would not consent to be taxed and lenders at last re-
fused to lend. The King and Queen sent oil their
plate to be melted down. but 1t WAS insufficient for
the public expenditures. The treatise Of John Law
on money and Trade" had been translated into
French, and at length Talleyrand brought forward
and carried his measure for the c0nScation 9l the
whole ecclesiastical property OF the Kingdom, re-
serving pension to the clergy, and aPpropriatlng
what was estimated ut IS 100000 to aid the public
necessities.
SALE OF CHURCH PROPERTY.
In December 1859, the assembly ordered sale of
church and crown property to the amount of fltOOO,
000 and decrecd that paper currency should De crea
ted of that amount bearing per cent interest," ana
called assignats, for the redemption OF which the
copfscated lands we're to be Sold Not to enter into
all the progressive steps taEen In less than months,
by another decree the aSsgnats were declared ie-
gal tender with interest at ~ per cent. The PUBIC
| debt rapidly increased and in 1870 assignats
| were created of double the amount. Fur.
ther large amount were created in lI9l-y2, and
In lI93 the assignats were at discount OF ~ per
cent ShOpkeepcrs refused them for prime neeess-
ties and their shops plundered In general riots.
With the creation of more assignats in 1893 the
convention decrecd years imprisonment to any
person who should sell assagnats at less than their
nominal value Or.make any difference in price wheth'
er paid in paper or specie. silver franc got TO be
worth six in paper. The penalties for making any
difference in price greatly increased and
death was decrced against oil who kept back from
public sale articles OF first necessity Trade ana pro-
luetIon nearly ceased. Public functio narics could
no longer live on their salaries and one-third OF the
army deserted.
THEY HEARD SOMETHING DROP.
In 1T95 the assgnats in nominal value amounted to
s3 500 OOO and had fallen to Onethousandth part
OF their nominal value Finally the Government re-
fused TO part with the national domain Mt the deprecl
.ted value of their paper currency. and destroyed II
ut 4 single blow by decrceng that anyone migh
make bargains in whatever currency he pleased.
Thus dropped out Of circulation perhaps, the larSes
batch of legal paper currency ever created
= | lnotwithstundin. 1t was based upon land security
and supported by all the terrors Of national pow
er.
TIE ARGENTINE REPUBLIC AS 4 BANKER
The Argentine Republic established In 1854 grea
national mortgage bank tUmake loans on the hyputh'
ecation OF real estate. The minister OF finance re-
garcd It as III great boon to the people for the reason
that land is great patrimony, the immense caplta
of The country and every facility, he said, shoult
be given to mobilize the capital and increase It's val
Iu," Its functions were not tn loan money OF
trnn %
ON the execution of mortgages In its favor, Whcf
were nut on the market for what they would fetch
with national guarantees to the holder the service
of interest anil amortization
The bonds were InPdc payable to bearer ana Dor'
interest Mt not exceeding per cent, and win an an
mai sinking fund for their ultimate payment OF no
ry.ec,linc pcr cent. The chairman and director
were appointed by the President OF the ktpublie
The iunk was to make loan of less than 81 NU no
above S15DODU. The mortgage extended to MI oihc
nrnurrty OF the norgagcr though not mentinhed u
ih.mortgare and no loan to be granted Tor NOR
than half the value of The property In0rlgnsch. &
delay of over GO days in the payment oi the hyP"ne
cary obligation authorized the bank To put up 10
sale at publc auction the property mor'g"sri, WIN
out any legal proceedings, and to award IL " th'
highest bidder.
, SHAME AND DISASTER.
II is mt necessary To say that the fin lncal SC hem
r ib ARGENTINE Republic has been hardly more OI
InNs hn