The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-02-18
AN ADVERSE REPORT
A Death Blow to Stanford's
Pet Measure.
ACtlOn Of The Senate Finance Committee
on Ills Land-LOan Bill.
II Is Pronounced Imprac icabIe aud Would
Prove RuinOlS 10 the C0ul-
try If Tried.
Special to THE MORNING CALL

WASHINGTON. Feb. 1.-THE Senate FL
nance Committees adverse report on Stan
1ord's Land Loan Bill. which was submitted
To-day, has excited unusual interest among
the members of Congress and newspaper
men at the capital; not because any one
ever thought for moment that the bill
stood ghost of a show to pass, but because
OIL the bilPs novelty, and because it has
been indorsed by several Farmers Alliance
organizations throughout the country. The
report was submitted in printed form. and
the lew copies to be had were in great de-
mand. The Senators on the chamber floor
were observed intently reading the report
! 1t Is understood that it was prepared by
Morrill,, the venerable Chairman of the
committee ON Finance. who is upward Of
eighty years of age. but who retains his
mental vigor to surprising degree. His
report is regarded by the Senators as an ex-
tremely able production.
THE REPORT.
Following G is synopsis of the report:
Senate bill entitled "a bill to provide the
Government with means sufficient to sup
ply the national want of sound circulating
medium" appears to be intended to supply
paper legal tender currency, by permitting
any owners of land to give lien upon the
same for twenty years to the United States
Government, for which the mortgager is to
receive legal tender paper currency and be
charged 2 per cent thereon. This measure
IS Of unlimited magnitude and demands
siA Aaro inn fro tba hfrxI
estimable character of its distinguished
author.
AVAILABLE TO ONLY ONE CLASS.
Several bills and petitions have been
presented from other sources equally
ambitious, which are intended to cure all
the financial evils from which the nation Is
supposed to suffer. and mainly differing
from the bill here considered in Offering
agricultural products for security instead of
land. The bill, of course, appeals to own
ers Of land for its support. as it could not
be made available to any other class; not to
mechanics and laborers, much less to mer-
chants and manufacturers.
WOULD LEAD TO TEMPTATION.
Landowners, for the much larger part it
is believed, are too intelligent and prudent
to conduct their affairs in such manner as
with mortgages. Even young men, at
starting in life. when borrowed capital is
useful and necessary, do not intend to re-
main long in debt. certainly not for twenty
years If the opportunity were offered TO
all landowners to obtain a loan at even a
less rate than our own or any national Gov
ernment now pays, 1t is possible that it
might inspire improyident habits and ex-
travagant speculative ventures In a class OF
no oil .fNtf FRI
such temptation.
FOUNDED ON LAWS PRINCIPLE.
The bill we have under consideration Is
plainly founded in the principle put for tn
more than century ago by the notorious
John Law, which is set forth in the follow
Ing terms: That if paper currency, not con-
veruble into specie, be based or secured
upon any article of va lue, such as land and
be Issued to an extent not greater than the
value in specie Of such article. such paper
currency will not be deprecated in compari-
son to specie"
This certainly embodies the leading prin-
ciple of the bill upon which the report is
based; that Is to say, of making land prop
erty security for national loans, and also for
an uni limited issue OF legal tender circulation
of paper.
PLAUSIBLE BUT UNsoUND.
Many persons may be captiyated with
the plausible idea of obtaining cheap loans
and plenty of money on easy terms, but the
experience of enlightened na.ions shows
that wherever such reckless financial ex-
perlments have been tried they have ended
In commercial crises, bankruptcy and gen.
eral national disaster The principle Is uu-
sound and cannot bring forth good fruit.
The report here refers to some of the i'll
porn national examples, which concluSiyely
demonstrate the iuexpedence that has al
ways attended all such measures and their
final ruinous catastrophe. Such financial
policy without doubt was the cause of the
French Revolution. The Argentine Re-
public established in 1856 great national
mortgage bank to make loans on the hy-
pothecation of real estate, and is now greY-
ously embarrassed.
A MISERABLE FAILURE,
Other examples are given, one being the
attempt OF the United States in 1880 to
maintain Continental paper currency at par
with species and: though secured by the
honor and loyalty of the whole republic and
by Its vast amount of landed property, in
spite of all that Congress. Washington,
Adams and Franklin could do to uphold the
country,s credit, pair of boots sold for
1000 in Continental paper money: hence
an American can find 70 contemptuous ex-
preston by which he can indicate more
pointedly the utter wOrthlrssness of any,
thing than to say 'lt is not worth Conli-
mental
APPOINTMENT OF CLERKS.
Manlfestly this plan covers every county
and town in the United States, and if ac-
counts are to be opened in all, instead of
bureau in the Treasury Department, it
would require, to hold the Chief and his sub
0rdinates of this colossal banking estab-
lishment, building by itself and of greater
magnitude than even that OF the War, State
and Navy Department. 1t is further pro-
vided that the Chief and Deputy Chief of
this so-called bureau shall be appointed by
the President, by and with the advice and
consent of Senate; one with $1,000 aud tie
other with $4,000 salary. But the Chief OF
the bureau, with the approval of the Secre-
tary OF the Treasury, is to appoint such sub
ordinate officers as may be necessary to
carry out the provisions of the act, and to
| hx their salaries, but not to exceed the sal
aries paid for similar clerical services in The
Treasury Department The duties of many
| OF these subordinate officers would not be
inferior to that of the Treasurer, Comp
troller OF Currency or Director of the Mint,
and superior as to responsibility to the
Treasury Auditors and Comptrollers, and
yet, unlike to all these, they are to be ap-
| pointed without the consent Of the Senate,
by the Chief of the Bureau, with the APP