The times. [volume] (Richmond, Va.) 1890-1903, 1891-02-18
REP0RrED fDTERSELT.
Result Of the Committee of Finance In Refer
ence 10 Governmental Loans on Real Estate.


encc 10 Governmental Loans on Real Estate.
WAsuNGros. D. c.. Feb. 1.-THE Senate
Committee OBJ Finance. through Mr.. Morrill,,
to-day submitted an adverse report 10 the Sen
aie on the bin introduced by Senator Stan
ford providing for governmental loans on real
estate. After calling attention To the blu
and petitions of nature somewhat SIM
liar o. Senator Stauford's bill that have been
presented to Congress the committee says
that the bin of course appeals to the owners
of land for support. rs 1T could not bee made
available to any other class. not % mechanics
and hborrI-. much less 10 merchants and
manufacturers.
Landowners. for much the larger part It
is believed. are too intelligent and prudent.
SAYS the committee. ITO conduct their affairs
IN such 70 manner as % be compelled 70 cover
their homestead with "a mortgage. Even
yDuu1 mon 40 starting IN life. when borrowed
capital l- necessary do not intend % remain
long in debt. certainly not for twenty years.
If tle opportunity were offered 10 all mnd-
owners To- obtain loan az even
less rate than our own or any national
Government now pays. IL is possible that 1t
might inspire improyident habits and eXtraVa-
giant or speculative ventures IN that class oi
our c0uutrymcn now almost exempt from
such tcmptations'
The committee reviews at length the history
of financial schemes of q similar nature-nota-
hlv the Mississippi scheme and the lsSuanceS
of Continental monev-t0 show the disastrous
consequences that have marked attempts 10
carry out the provisions of such measures.
"fhec examples" says the committee.
would seem to prove that the objections 10
the main pru piles of the bnl here considered
are So fundamental as - make It unnecessary
% review Its details, for II II were constructed
with tine greatest skill and ability these OBJ
iections would still remain insurmountable
The circulating value of % paper currency can
only he maintained by It's c0nyertibihty INTO
specie ai the will of the holder, and excess N
cc- iu-Wcs it's depreciation"
In reference to the section Of the bill provi-
ding for the establishment of the land loan
bureau of the Treasury Department. the COM
mittcc slys that manitosty the plan covers
every county and town IN the lnlted
States and If faccounts were to beopened at all
instead of bureau of the Treasury Depart
mcnt n Is required 90 hold the chief and ms
~ub0rdinatc- of this colossal banking estab-
lshment building by itself and of greater
magnitude than even that Of the War, State
and Navy departments.
OTHER OBJECTIONS.
Among other objections noted the com
mittce cites the provisions for loanng the
Governments money at per cent interest.
"The Government Of the United states" 1t
SAYS. "has no surplus. nor ~ 1t likely 10 nave
any 10 lend to borrowers at any rate Of IN
tercst and certainly none at less than half the
rate il is now paying, There is not mil,
f0nnire I'm the whole country who would
loan M per cent. on the security 10 be Of
iered. but it is now proposed that the Govern
mcnt. not IN fact having any money 10 lend.
Shall lend its own notes aud make thenf by
law "a legal tender. receivable in lieu Of gold
or any other lawful money forall private debts;
"A large owner of unencumbcred land
MIGHT apply for loan Of :l00OO0o, and re-
loan IL I'm smaller amounts at much higher
ra,e than he paid. Where the constitutional
power Is lodged which authorizes the Govern
fncnt to loan money OF 10 create IN the Treas
sury Department gigantic banking insstltu-
tion il viii be difficult 10 point ont. and that
such power exists may bee safely denied.
I'm conclusion the committee fays: Some
of the minor objections 10 the bill might per-
lap. bc removed 10y amendment, but the
objections 90 It's substance constitutlonality
and TO the principle involved are ineradi-
cable.
"The committee. therefore, report adversely
upon the bill. and recommend It's indefinite
po,tponenent.'