The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1891-08-21


heretofore disregarded, have been uni
versal. They could find no expression
in the platform of any existing political
party, and therefore have been con-
temned as we'll as unheeded. These NUT
terings have at length found voice in a
new political organization, and their
long pent up expression will undoubt-
edly be the great slogan of the coming
presidential contest. Hence it is of the
most vital concern to the party itself, as
well as to the people whose interests it
would subserve, that its financial policy
should be one that can be defended upon
the grounds of justice, of public neces-
sity and of business principles. If such
a policy can be formulated the young
STRIPPING of party will win to its fol-
lowing the honest hearted yeolnanry of
the whole country, and may achieve
political victory unrivaled in this coun-
try for more than half century past.
In the first place, therefore, the cur
rency which is proposed to be issued
should be based upon a perfectly secure
and imperishable foundation, and should
be legal tender for all debts, public
and private. Such basis can only be
furnished by the real property of the
country. 10 accept personal security,
or any other security than the improved
real property Of the country, would be
to hazard the loan, which the govern
ment, in the interest Of the whole peo-
pie, poor as I'll as rich, cannot justly
do. There can be no better or safer Sc
curity for government loan than the
real property of the nation. If the loan
is placed upon such property at one-half
or one. third of its real value, it is as Sc
cure as the government itself, and the
currency based upon such a loan is as
good as a government bond or gold and
silver
The main argument against such a pol
icy based upon its supposed impractical
bility. This has been answered by stub
born facts. The state of Oregon has now
more than two million dollars of school
money loaned out upon the improved
farm property of the state. The amount
of the loan is fixed at one-third Of the
fairly appraised value of the farm. The
entire management of the loan is con-
fided to the state school land board, con-
sisting of the governor, secretary of
state and state treasurer, and is witho ut
any cost to the state other than that in
volved in the salaries paid to the mem
bers of the board for their entire official
duties, amounting in all to $500 per
annum. The applicant pays for the ex-
animation of the title to his land and its
appraisement by the attorney of tho
board for the county in which the land
is situated.
The machinery is perfect and compar-
atively inexpensive, and the security the
best in the world. The loans for the
whole state are made by the state board
at the capital, and the distribution of
funds throughout the state is fairly
made This system has been blessing
to Oregon farmers, and it may be a
blessing to the farmers of the whole
country by demonstrating the entire
feasibility of loaning government money
upon the improved real property of the
country.
The next question Of Importance
evolved by the proposed financial system
is: How shall the money be procured by
the government for making such loan?
If required, it could and would be pro-
cured as it was in order to carry on the
late war, but the amount to be provided
would to a great extent depend upon the
exact conditions of the fiscal policy to be
established.
# the loans were made to the people
upon improved real property at rate
not exceeding 4 per cent, and the cur
rency for such loans. as well as gold and
silver. was changeable at will into gov
ernment treasury notes or bonds bearing
interest not exceeding per cent, the re-
suit would undoubtedly be that the
issuance of not nearly 80 much currency
would be required as would be if no such
provision for funding it was made, mas
much as investors in government securi-
ties would largely furnish the required
amount
If a policy be adopted of changing the
currency into bonds and the bonds into
currency, at the will of the holder OF
either, under the necessary restrictions,
the whole financial business Of the coun-
try could be adjusted to the proposed
system without any greater enlargement
of the volume of the currency of the
country than its actual business require
ments demand Such policy would
place the currency Of the nation upor
the safest foundation possible, and would
entirely preclude those extremes of con
traction and expansion so hurtful tc
business interests; for if there should
be in circulation more money than could
be advantageously used it would seel
investment III government securities
while, if there should be an urgent nee6
for more, the bonds would be changed
into currency
The loaning Of money by the govern
ment at per cent. would at once Fl;
that rate throughout the country with
out any other or further legislation, ant
the capital now employed at ruinou