The advocate., 1891-05-06

money TO the farmers or Gn6 country on de-
posit Of their products and the prayer of
those petitioners has been denied, want 70
know why a government bond is more
sacred than bond upon the farm of any
citizen, 90 that IL shall be- held as basis
for issuing circulation upon the loan of
public money of these banking associations.
Whatever objections there may be to the
principle that the government should fur
nish the people with loans on their property,
We are responsible for we teach il to them
by such bills as this, providing for the issue
to these banking associations of circulation
equal to the amount of their deposits. The
people of this county do not see why gentle
men should vote for this bill and yet deny
the right to loan to the people upon the
products of their farms or upon the farms
themselves.
do not wonder that throughout this
country from the producing elements in
the north, south, east and west comes the
demand that Congress shall lend them
money as well as lend it to the national
banks. They have the same right to it.
Representative Lane, of Illinois, re-
marked:
speak what know when say that half
the national banks of the west to-day are
loaning half their capital on farm mort
cages; and is it not known to all lawyers
that the supreme court Of the United States
has decided lately that, Notwithstanding the
fact that the charters of national banks
prohibit the loan Of the funds of such banks
on real estate, yet if bank makes such
a loan on real estate to be secured by mort
gage, such mortgage can be foreclosed in
the courts, and the party who executed the
mortgage is estopped from setting up the
defense that under the law national banks
!, are not allowed to loan money on real es-
tate security?
The government issues the national bank
currency and gives it to the national banks
Temphasize the word 'gives" "-and then the
bank loans it to the people at to 10 per
cent. interest. Not only this, but the gov
ernment pays the bank an additional pre-
MUM of to 4 per cent. interest on the
bond to induce the national bank to accept
the gift of the currency. Why should this
be9 Why should the people pay interest on
their own money, amounting to millions
Rnnually2 It is the most stupendous fraud
ever practiced on q free people, and the
fraud is becoming more apparent every
year. The farmers of the west are asking
that system may be adopted or a law
passed by which they can borrow money
from the government, to be secured by a
mortgage on their farms. They do not ask
it as gift or loan without interest. But
the wiseacres of this House are laughing
the proposition to scorn.
Representative McRae, OF Arkansas,
said on the 28th day Of January, 1890:
There is already pending in the Senate a
bill, introduced by the junior Senator of H.
linois, Senator Farwelll to perpetuste the
national banking system by substituting IN
lieu of the registered bonds Of the United
States required by section 5,149 of revised
statutes, state or municipal bonds, upon
which interest has been promptly paid. The
preamble to this bill declares that "the
rapid redemption of the United States bonds
is endanger1ng the prosperity of the national
banking system" The country should be
congratulated that the system is in danger.
The other remedy suggested is to authorize
the issue and sale of bonds to bear 2 per
cent. for afty years and TO be used only as
q basis for bank notes.
In circular issued in 1862, by English