The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-01-06

gre4t multitude of our people, and as such
they involve the greatest economic con-
~sideratiors.
To illustrate how far the activities may
determine the values, suppose a nan Or
rows 500 Tor one year at 6 per cent aud
employs leo men to work for him at 81
a day. Wi b this sum of 800 he is able
to employ them one day. If he can con-
vert the product of their labor into cash
at the close OF the day, he can employ
them the next day, and so on for every
wor 1day in the year, The Sc interest on
the money In the presence Of such actlv-
lies becomes inconsequent.
The rate of interest charged by the
government under the provisions of this
bill will not necessarily FIX the general
rate Of interest for business purposes.
T. at will always be determined by It's
val1e in use. The farmer having this
best security will borrow o his own use,
or the use Of others who may be willing
TO pay him a satisfactory interest. The
banker borrows money from t e COVE n
ment fle3 of interest, and loans it at such
rate as its use commands in the market.
This measure has been C impaired to a
plan adopt, d in the Argentine Republic
for loans on land, but there Is no analogy
between the two, and to compare the
work ng Of a measure of tina republic of
say, 100000 population to that o. our
country with It's enlightened 62, 0O0,0 900
would be like comparing the methods of
some Irresponsible banker TO those of the
Rothschilds
So far as l have been able to ascertain,
the history of this Argentine land loan is
substantially as follows:
Some years ago the Argentine govern
ment conceived the plan of raising real
estate values by what might not inaptly
be called booming The better to efec
this it authorized two banks, called
the Matt NAL and Provincial banks, to
issue a species Ct land bond called cedula
or certificate. These bonds were issued
in return for land mortgages of so per
cent. on appraised value OF the land The
moItgagor received no cash for his mort.
gage, simply the bond of tn bank, which
he then had to negotiate on the street for
what it would fetch. The bonds bore 8
per cent. interest in paper, and the mort
| gage was redeemable at the ga K on pre-
sentation of bonds for the same mount
AbouC 100000 600 worth Of these cedulas
were issued.
The difference between this scheme and
the plan embraced oy the bill under con-
sideration is so wide and marked that l
need hardly point it out. The cedula sys-
te n provides for no increase of money
The bank was merely authorized to give
a bond, and the bond was exchanged for
a certain amount Of money already in cir
culation.
Ishall not at this time consider the de-
tails of this bill. The machinery for put
ting it in operation can best be determined
by experience.
But the bill provides how it may be put
into operation with safety to the govern
ment.
The amount needed will be determined
by the uses to which money can be put at
a profit of above 2 per cent. Should the
value of money for use under any circum-
stances fall below 2 per cent, in that case
| the money would be restored to the g v.
eminent and the mortgages released, until
the money would again readily command
2 per cent.
So far as / can ascertain no govern
ment has ever attempted to furnish an
adequate supply of money, or establish
any standard by which its wants could be
ascertained.
This bill fixes a standard for the amount
so long as money can be proftably used
at more than 2 per g per anuum. The
ability of the government to make money
being unlimited upon good security, and
the landed security of the government be-
ing substantially unlimited, the real wants
and necessities of the people can be ascer
tanned and met.
The foundation of the whole matter
and the real question to be considered is
that, inasmuch as the government reserves
the right to issue money, it is its duty, the
means being provided, to furnish what is
necessary to the prosperity of the people
1 move the reference of the bill to the
committee on finance.
The Vice President. The question is
on the motion of the Senator from Cali
fornia that the bill be referred to the com
mittee on finance.
The motion was agreed to.