Evening journal., 1891-02-18
NO GOVERNMENT LOANS.
Uncie Sam Will Probably Not
Be Mortgage.
AGAINST sTANFORD's MEASURE

The senate Finance Committee Return,
an Unfavorable Report on the Bill Pro
vidins Tor National Loans on Real Es.
tate--Ths Principle Is Unconstitutional.
WAmNeToN Feb. 1s.-The senate com.
mittee on finance, through Mr. Morrill,,
has submitted an adverse report to the
senate on the bill introduced by Senator
Stanford providing for government loans
on real estate. After calling attention to
the bld and petitions OF nature some.
what similar TO Senator Stanford's bill
that have been presented in congress the
committee says that the bill OF course ap-
peals 20 the owners Of land for its support,
as it could not be made available TO any
other class, not TO mechanics and laborers,
much less to merchants and manufactur-
ers. "Land owners for much the larger
part u Is believed, are too intelligent and
prudent, says the committee, ito conduct
their affairs in such manner as to be com.
PEELED to cover their homesteads with o
mortgage Even young men starting life,
when borrowed capital is useful and
necessary, DO not intend to remain long in
debt, certainly not for twenty years
a Had Example, Perhaps.
"lf the opportunity was offered TO all
land owners 20 obtain a loan az even a less
rate than our own or any national govern.
ment now pays 1t is possible that it might
inspire impropident habits and extrava.
CANT or speculative ventures in thewlass of
our cOuntryInen now almost exempt from
such temptations Thecommittee reviews
at length the history Of financial schemes
OF q similar nature notably the Missile
sippi scheme and the issuance of continent
al money-tO show the disastrous conse
quences that have marked the attempts 70
carry out the provisions Of such measures
similar Financial Schemes.
THESE examples says the committee,
would seem 10 prove that in the obiec-
tions 60 the main principles of the bin here
considered are 80 fundamental as TO make
it unnecessary 70 review its details. for II
IL were constructed with the greatest skill
and ability these objections would still
remain insurmountable. The circulating
value of a paper currency can only be main
tanned by It's convertibiity into specie at
the will OF the holder. and excess insures
its depreciation"
~ Wouio He a Colossal Bank.
In reference TO the bill providing for the
establishment OF the land loan bureau Of
the treasury department. the committee
says that manifestly the plan covers every
county and town in the United States, and
II accounts We're to be opened az all in
stead OF q bureau of the treasury depart
ment, IL would require to hold the chief
AID his subordinates OF this colossal bank
ing establishment in a building by itself
and of greater magnitude than even that
Of the war state and navy departments
Among other objections noted the com
mittee cites the provision for loaning the
government money
~ Has No surplus
THE government Of the United States.
Il says, has no surplus of money. nor is il
likely to have, 20 lend to borrowers al anv
rate of interest, and certainly not at less
than half tho rate itis now paying There
is not millionaire In the whole country
who would loan al per cent on the se.
cuflty TO Dc offered But IL X now pro
posed that the government. not la fact
having any money 10 lend. shall lend it,
own notes and make them by law legal
tender, receivable in lieu Of gold OF any
other lawful money for an private debts /
taxes, excuses, public lands. and an de- /
mands owing by the United States, except !
interest on the public debt and il redemp |
tion of the national currency.
Unconstitutional in Principle.
a large owner Of unencumhered land
might apply for a loan Of 81 100000 and re-
loan IL IN smaller amounts at q much
higher rate than he paid Where the con
stitutional power is lodged which author
ICES the government to loan money or to
operate IN the treasury department. a 81
gantic banking institution IL viii he diff
cult to point ont and that such power
exists may safely be denied In conelu-
sion the committee says: "Some Of the
minor objections To the bin might perhaps
be removed by amendment. but the obiee-
tions TO ita substance constitutionally aud
TO the principle involved, are ineradicable
The COMMITTEES therefore report adversely
upon the bin and recommend It's indefnRe
postponement