The state chronicle. [volume] (Raleigh, N.C.) 1883-1893, 1891-01-07
SHALL TIE STATE HELP |!
IfsI FROM NORTH Avotl<A
HISTORY,
Accompanied hs a Naxxr=tIaa 4, ~.
ITEl>iaEaTv ! hat Loan. b. Mas. h
tise state on Land

/
.~iseel4l Clf SCARS taAassctst
E&snERso>. y L. Dee. -. iSea. -
>eN tAst thc I.spa hl4c44 >.saalor... eau.
cas aAs iret1cl upon ;hsir b.4l Tor at.Au
e'si re'sef. j. is apparent ,le sebo,n, b.
devised chiefly "a help TIC uai.aral
bA4ks IL Tie nuanc,al eeatees os i.e
country, and only those y Go havo Uulteel
States bond or gold o- silver bullion can
avail themselves Of Inc privileges COG
tanned IL the b.l
utl there j. elected n Democrats,
Congress and President. We cannot hone
Tor any tuAncial legislation that viii
help the agricultural portions O! the
ceGatry. Iae present Congress will not
pass senator >tauford's bill TO issue
greeahacks to 20 loaned Ia the farmer
nor Viii II make the coinage OF silver
free.
The enquiry here arises can the several
| States afford the necessary relief hv
| their individual action. For instance
would II toe constitutional for the incon4
| ing legislature OF North Carolina to
| pass al act to issue, say. five or ten
million Of per cent. bonds, the pro
| people OF the several counties on unin-
| cumberod real estate Al 4, per cent.
| interest, for a period OF fifteen wears
Not more than 81. 900 10 be loaned 10
any oae person. Coaccdlng The Legis-
la'nte has such power. would IL be "A
goe q thing to dot We may form some
Idea rs To this, from study of he results
OF Just such legislation upon the people
or this state when colony of Great
Britain II may surprise some to toe told
taat III l421, the General Assembly Of
North Car llna. as "A relief 10 the people
suffering from scarcity OF money,
passed an act providing for the Issue OF
$500, 600 90 in bills which were to h..
les ii tender for debt, and were to h.,
loaned to the farmers of the several
counties (preciucts) for period of u
years, a. q Ia per cent. interest. This IN
teresi aud one. fifteenth Of the principal
was payable each Year. The county
treasurer WAS authorized to lend on un.
lncun hered farms 10 one half their val
| ue. If the interest WAS not promptly
| paid, he had the right 10 dis,rain upon
any personal property # the debtor he
| could find. If the interest was
/ not paid for three consecutive years. tho
| county treasurer was then to rc-enter
| and take possession and seIl the land on
thirty days notice.
| 1t will still more surprise some to DO
told, that the above scheme. open 10 80
many objections, aGd presenting 80 many
| dit1i tultIes; III other words. apparently so
| visionary, met with complete success
1t was so beneficial 10 the people Of
| North Carolina, that ii was substantially
! adopted In Penusy lvania. Massachusetts.
| Rhode Island and South Carolina; and
| the plan was recommended to the GOV
| ernor of Massachusetts,, TO the mother
country for introduction in ali the
| colonies. 1t would seem bat simple
justice, that, as the National
Banking law denies To the farmer the
privilege of borrowing money from na
tionai bank on his farm as IA security;
and as Congress has gone still further
and legislated ont of existence our state
banks that formerly afforded this aid To
the farmer, some plan should be devised
by which the owners Of land, species
of property of all the most stable ia
value, indestructable IN it's nature, i'm
movable; the very mud sill Of all OF her
properties, could make use Of his prop
erty as basis of credit.
Such scheme must look to govern.
rnent aid, either National or State,
rather than to the banks.
It is uot u proper function of bank
to lend money on land. such loans Of
necessity must be for long time.
Banks cannot make loans on such sccu
rIty or for such lengths Of time. They
must have their loans III such shape as
20 be readily convertible into money a.
necessity denands. The function Of "A
bank is to act az the custodian Of mon
eys; to provide circulating medium
aid business by granting loans on short
time on commercial paper, but not to
lend money on long time, or on
real estate. Hence the relief OF that
class of orr population who possess
only land, must come direct from the
Government either National or State.
as some deny the power o. the Gtn
eral Government to lend money To the
people-though it is done 10y every Con
Qreas that grants a subsidy TO II steam
ship line or a bounty to sugar planter
there can tie 10 such objection 20 the
states dong such athing, provided its
orn constitution does not prohibit this
II such be the case, 1t i. a matter
entirely with the people Of the State
whether they will not change their State
Constitution 10 enable them 10 do
it. 1t will. | think, be conceded
that the values Of our farming
lands are below par. ] can think OF 10
plan that Will tend more 10 bring them
up to their normal value, than some such
scheme as is outlined above; and il il
not time. that species Of property,
which for twenty eight years has been
discredited in the eyes of the commercial
world by the direct act Of the General
Government, should be rehabiltated by
| some Governmental action either Ma
| tional or Slater !, for one, think i: il.
| WM II. S BURGwYS.