The midland journal. (Rising Sun, Md.) 1885-1947, 1891-07-17

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termed bill to reduce the rate of inter
est in the United States, for this would
be its principal Office. 1t is no wonder
that the honorable members of the
senate received with marked GOODNESS a
proposition which would inevitably cut
down their interest incomes more than
half. When we contemplate the re-
duction of one mans interest income,
we should not forget the relief that
comes to the other man, whose toll
produces the income to somebody else.
1--we have marked one rasult Of such
a law and found it not bad, what next?
Would the land be flooded with money
now that the supply had become ample?
We answer empbatically, No. Is it
ever urged as set off to the blessing
of large crop Of food, that people
having an abundance of eatable things
are sure to make gluttons of themselves
in consequence? If money we're to be
made free, then abundance would
doubtless degenerate into excess but
there is vast difference between an
abundant supply of money and free
money. A great many people evidently
have not thought of this fact, and
would do we'll to ponder it. Money is
not free SO long as it can only be OBJ
taines by giving for it a full equivalent;
and mortgage Of real property has
always been deemed full equivalent
for cash.
/ Under the practical operation of our
new law, then, farmers, who were own
ers Of farming lands, could borrow
money from the government on mort
gage by paying the full regular rate OF
interest prevailing in the country at
that time. That is all there would be
to it, and no amount Of windy argument
or number Of high sounding phrases
can cover up the simple fact. Those
who are acquainted with farmers, as a
} class, know that they do not borrow
money on mortgage just for fun. They
borrow when they need the money,
and repay just as soon as they arc able,
1t is not worth while to attempt to
show that no food of money could
come upon the country from granting
such privilege to farmers, the fact is
} too plain already. And another fact Of
equal importance is equally certain,
which is, that there would soon be in
circulation all the money demanded by
the legitimate business of the country
OF the stimulating effect upon the pro-
ductive energies Of the people, caused
by an abundant supply of money, ]
need not speak, the story has been told
full often and well. OF the gain tc
: humanity, arising from general lower
ing of the rate of interest as much as
i, two thirds, volumes might be written
The power of money, Of which we have
heard SO much, would be more than
half destroyed, and with it the power
of the money class. The power OF
money is largely due to its rapid in
crease through interest. At 6 per cent
a colossal fortune will double itself in
, about dozen years, while the owner
waits.
At 2 per cent, it would be long
time doubling, and the owner could not
well afford to wait.
1t is matter of universal concern,
not to say general anxiety, this fact Of
the rapid absorption Of the wealth OF
the country by very small number of
persons under the per cent rate Of
interest. A 2 per cent rate would be
a wonderfully effective remedy for this
gigantic evil and it has the advantage
of being the only available remedy thus
far suggested. The objection that the
government could not do this loan bus.
mess safely and economically is puerile
The government has occasion to take
bonds from great army of employees
scattered through the country and has
proved itself equal to the task !; it would
be no harder task to ascertain that the
title Of an equal number of farmers to
their lands was good. The government
has proved itself able to loan money for
banking purposes; We doubt not that it
could, with equal facility and success,
loan money for productive purposes,
Ii there are real objections to these
land loans, I shall be happy to consider
them when presented, and to acknowl-
edge their weight in case they are
found to be heavy e. NJ. BURcuARD
in National KieW.
Not Enou0t Gala .~.l sy:,-