The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1891-06-18
THE TWO.PER.C GENT. LAND LOAN.
An Unconstitutional and Impracticable
Scheme to Initiate the Currency.

two per cent. land loan dill, and it is
destined to be still more prominent
theme Of discussion as the campaign ad.
vances, yet there is very inadequate
understanding as to what its actual pro.
visions are. Many have withheld judg-
ment upon 1t until there has been
fuller explanation of the manner in
which it is to be put into practical effect,
and many have utterly condemned it
from the fact that some OF its leading
advocates have no idea of its constitu.
tional defects nor of the practical diff.
culties that are against its adoption.
The bill provides that the Treasurer of
the United States shall cause to be print
ed circulating notes of the United States
of the denominations OF one, five, ten,
twenty, fifty, one hundred, five hun
dred and one thousand dollars. These
notes are to be legal tender for payment
of all private debts, including duties and
excises. These notes after being print
ed shall be held in the Treasury to the
credit of the Land Loan Bureau for the
creation of which the bill provides.
Every person who is a citizen OF the
United States or has declared his inten-
ton to become such, and who is the
owner in fee simple of unincumbered
agricultural land may file with the
Bureau an application for loan, to be
secured by lien upon such land valued
for agricultural purposes. This applica-
ton must give the value of the land ex-
elusive OF improvements, and also its
assessed value for taxation purposes.
The amount to be loaned must not ex-
ceed one-half the assessed valuation, nor
must the time of the loan exceed twenty
years. No loans shall be made on lands
valued less than $500, nor shall any loan
be less than $3.50.
There is no limit to the magnitude of
the loan that may made, and the owners
OF large tracts are at liberty to secure the
benefit of the governments loan at two
per cent. and put it out to persons who
have no real estate to mortgage, at much
higher per cent The application for a
loan, when placed on file with the
Recorder OF the county, shall constitute
a lien on the land and shall be notice
to all subsequent purchasers that such
land is incumbered.
The applicant must deposit certain
sum to pay the expenses of the inspec-
tion and valuation OF the land. The bal
ance OF the deposit is returned to him if
not required to pay these expenses.
When the Chief of the Bureau is salts
fed that the valuation is correct and
that the land is unincumbered he shall
order the disbursing officer of the Treas.
ury to place the required amount in bills
of the kind provided to the owners
credit.
Where land that is already mortgaged
is offered as the basis of loan, if the
mortgage is less than the loan sought,
the disbursing officer shall order that
the holder of the mortgage be first salts.
fed and the residue be paid to the
owner of the land. A person wishing to
return the loan and release his land may
do so at any time provided that he re-
turns not less than twenty-five per cent.
of the amount that may be then due.
He may draw the amounts due him in
any sums he may desire.
1t shall be the duty OF the Secretary of
the Treasury to retire from circulation
from time to time such amounts of these
notes as shall have been paid into the
Treasury. Whether the payment be made
in the notes or in other kinds of currency
or coin, corresponding amount of the
land-loan notes must be cancelled.
The interest at two per cent. is to be
payable annually. The Land Bureau is
to open up separate accounts with each
borrower and credit him with his pay.
ments or charge him with the different
amounts as they are drawn out. In de-
fault of payment of any part OF the prin.
cipal or the interest the United States
shall take steps to foreclose the mortgage
in such way as to conform to the usual
procedure in the county in which the
lands may lie. The attorneys fees and
other costs shall be added to the claim
on the land provided these costs do not
exceed $500.
1t will thus be seen that in case of a
foreclosure the Government cannot get
possession OF the land for two years, and
there is no provision as to what the
Government shall do with the land
should any fall into its possession. It is
not stated whether it shall be given
away in free homesteads and the Gov.
ernment suffer the loss, or whether the
Government shall keep it, or sell it. It
is probable that almost all real estate
that is already encountered would be
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