The farmers' union., 1891-04-09
A FEW PRECEDENTS.
GOVERNMENT LOANS BY NO
MEANS A NEW IDEA,
Tho Government Has Been Loaning
Money to Banks for Twenty Eight Years;
1t Has Loaned Money to Railroads, to
Exp sitions, to Whisky Men; Why Not
10 Earmrrhn

should loan money to the people on real
estate security is received by the advo-
Gates of a restricted currency volume as
one of violent lunacy. 1t is denounced
by such aspersions as wild 'simpracti-
cal,' ''chimericai," visionary" '.lun-
acy," etc. AS though this government
had never done such a thing as loan
money to the people and on poorer Sc
curity than on real estate, too.
Why the government has been loaning
money to bank corporations for twenty
eight years at l per ccnt.-aS high as
$40, 0O0.00
For over twenty seven years a law has
been on the statute books allowing GER
tain of those banks the free use of gov
ernment funds without any security. At
times as high as 500 600, 900 has been out
in this way.
A loan of government bonds was made
to the Pacific railroads years ago. the
roads to pay the interest on those bonds:
but those railroad corporations have not
had the integrity or decency to even pay
that interest, and bill was introduced
in the senate January II directing that
proceedings of condemnation be com
menced against the corporations, and
providing fund to pay off those bonds.
1t is estimated that $3.50, ,000,0 900 will be
required to settle those claims for which
the government is responsible.
The government loaned money to the
corporation that run the centennial ex-
position at Philadelphia in 1876, aud had
to go into the courts to make the cor
poration refund the money. The govern
ment leaned money to the cotton eXpoSi-
tion at New Orleans and stipulated that
the money should be repaid.
The government has built warehouses
for whisky men to store their liquor in.
1t gives certificates of the grade, quality
and proof: gives the owners three years
in which to pay the tax: and pays the
expense of guarding and protecting the
whisky at an annual expense of S3, ,000,
900. The government is equally liberal
and generous with importers and eX
porterS, building warehouses and storing
their goods free of cost.
The government has only recently au-
thorized loan of a large sum of money
to the corporation that is to run the
worlds fair at Chicago. and stipulated
for its payment.
The government has been giving sew
erai millions to the bondholders as an
absolute bonus for the simple privilege
of paying the bonds.
In consideration of all these favors, is
| 1t a thing so unprecedented at the pres.
| ent time, when it is universally admitted
! by all except bankers and money-lenderS
| and the press subsidized in their inter
! cStS, that there is an uueNamplcd Strin-
| gency in the money market, that farm
| ers shonld ask government loans: Even
| this demand is not without abundant
| precedent. Such a system prevailed
,b,,, all II, al Of ~ al
| onies until it was prohibited by parlia-
| ment for the reason that it was under
| mining the specie basis, debt-creating,
uSuryrObbing system of the British
| money kings. the fund-holdcrs and the
| fixed income class.
DIR. Franklin has left on record a his
| tory of the plan adopted in Pcnnsyl-
| vania and its results, which we copy:
Tho assembly of Pennsylvania, by an act
| passed in 1.:}9. authorized the issue of pa per
| money to the amount fS0. 600 $500. .0o0I.
| This was to lie emitted to the several bor-
| rowcrs from loan Office established for
| that purTosr. Five persons were nominated
| trustees VI the loan office, under whose care
| and direction the bil or notes We're t, be
| emitted.
They were to lend out the bills on real
| security Of at least double the value for Il
| term of sixteen years. TO ne paid with inter
| est. nus DHe-SiAtt e1tn part oil tne rfln
| cipal was yearly paid hack into the office,
which made the payment easier To the bor
| rover. The interest was applied to public
! services; the principal during the first ten
| years let out again tn fresh borrowers.
The borrowers, from year t. year, were to
| have the money only for the rema lining part
| of the tenn of sixteen years. repaying by
! fewer and Of course, prop )rtionatcly large
| instailments, and during the last six years
| OF the sixteen, The sums paid in were not
| emitted. but the notes burnt and destroyed,
so that at the end of sixteen years the
| whole might be called in and burnt and the
| accounts completely settled.
| Lest a few wealthy persons should cngross
| all the money. which wa, intended for more
| general benefit, no one person, whatever Sc
curity he might offer. could borrow more
| than tlGo.
! commodated and assisted with money tc
| caIry on the settlements. to he repaid in
| easy yearly payments. as the yearly prod
ucis of their lands should enable them.
1t bore no promise of redemption in
coin. but pledge that it should be re
ceived for all dues. 1t rested wholly
upon the credit of the commonwealth
the taxpayers and producers. and it was
loaned to the extent of the demand, upon
Gland and plate
| 1t passed through no bankers hands
but was loaned to the people, thus saw
ing banking toll, and banking restrc
ton of volume; nor are there any panics
or fluctuations recorded.
Thomas Powell. NJ. p, of England
who acted as governor and commander
in-chief of all provinces, in book writ
ten by him in 17Gs, says in regard to thi:
colonial system Of money:
| will venture to say that there never wa
n wiser better measure, never one better
calculated t. serve TIE uses of an increas-
| ing country. and never WAS a measure more
steadily pursued CT more faithfully exc
! cutod forty years together. than the loaI
| Office in Pennsylvania, formed and admin
istered by the assembly of that province.
| In a country under such cirrunst ances
money lent VI on interest to settlers create
money. Paper money thus lent upon inter
, est will create gold and silver principal
| while the inter,s be comcs IL revenue tina
! pays the charges of the government. Thi
, currency is the true factolean strean
| which converts all into gold that is washct
by it.
AS a result of this system, DR.. Frank
lin says:
Between the years 1.40 and 1715. Will
: abundance rc:gnfd in Pcnnsy ivania an,
there peace in all hcr borders. a NOR
happy and prosperous population could no
perhaps be found oa this glole. In ever,
home there was comfort. The people gen
orally we're highly moral. and knowlt d
was extensively dtffuscd.- d.-Chicayo Sentinel
ROBBING PETER TO PAY PAUL
! How the Gold Bug Papers WilfulIy Mis-
represented the Proposition of Govern
| rnent Loans.
The Boston Globe, under the head 0
, "Robbing Peter to Pay Paul" display
;, its ignorance of the subject it is discuss
ing when it puts the proposal to LOAF
money upon real estate in the followin,
manner.
, Senator PETERS scheme for relieving th
: Kansas farmers of their mortgage burden