Capital journal. (Salem, Or.) 1893-1895, 1894-04-30


: the country to-the very verge Of fnan
cial ruin.
oh, for one year now Of Andrew Jack
son as president. -,
Government Loans.
! The government now loans money
only 10 the national banker. When HI
> wants money he goes to the government
and pawns his bonds at nine-tenths theil
face value. He receives his money ant
leaves his bonds in pawn. The Populis
party demands that this exclusive fa
voritism shall cease. They demand that
every person having good security shall
be placed on an equality with the ma
ti0nal banker. If the government should
follow the example of the state of Ore.
gOn, which loans its g., 500, 900 of school
4 money upon improved farm property in
amounts not to exceed s., 900 to any one
person, and at one-third the appraised
value of the property, there could be no
safer loan possible, and the effect would
be far-reaching and beneficial.
1t is not an experiment. Thepractica-
bility and usefulness of the scheme have
been most fully demonstrated here in
this state. And something of this kind
must be done soon, or the money-lenders
will own the whole land, and all other
classes win become their tenants and
slaves. Even monarchial Russia was
compelled to adopt this plan to save its
peasahtry from ruin.
Frank G. Carpenter, the noted syndi-
cate writer, in an article which appeared
in The Oregonian Oct. 80, 1892, said:
The government (Russia) has land
bank which loans money to the peasants
in order that they may purchase land.
This, bank was opened about 10 years
ago and it makes loans to both individ-
uals and to villages. The government
puts about $1,000, 900 into 1t. every year,
and since its organization it has made
over 100000 loans to more than 200, 900
families. In addition to this there are
various ways of loaning money to farm
ers, and the government of Russia
makes advances on grain stored in ware
houses or delivered to officials of the
several railroads in the country.
This system of loans has been going on
now for more than four years. It is very
popular and a great many of the peas
ants take advantage of it. 1t is no Won
der that they do so, for the charges are
much less than those of the usurers who
abound in every district of Russia and
who are sucking the life blood out of
the people.
1t Is indeed somewhat humiliating to
rNridn uyhn 0lni,,a 70 ho kka
lightened people of earth, that we are
compelled to go to Australia for a per-
feet system of voting, to Switzerland
for just system of making laws, to
Austria for needed system of govern
ment repositories, and to Russia for a
most necessary system of lending money
to the people. Let the government
accede to the demands of the people and
lend money as i'll Oregon and Russia on
landed property at rate not exceeding
4 per cent, aud in limited amounts to
each person, and establish government |
as in Austria, where it will |
pay not exceeding per cent interest ON !
deposits, and perfect financial system |
will be established that will both pro-
tect the borrower and the depositor, and |
yield princely revenue to the govern
ment; which to a very great extent
would relieve the people from taxation
for its support, and which would arrest
the fearful tendency in this country to
the concentration of wealth in the hands
Of few.
According to the census reports in
1860, Oh per cent. of the people held 81
per cent of the wealth, while per cent
held the remaining 8 per cent, leaving
not more than per cent paupers. The
census of 1890 shows that 80 per cent are
living from hand to mouth, practically
Daupers, while 10 per cent. own "a per
,ent. of the wealth. To some extent |,
,arif legislation has been responsible
'or this, but TO a far greater extent it
ias been attributable 10 our system of
nance and the high rates of interest
for money. When the old
United States bank was chartered, il
vas provided that but per cent. inter
st should be charged, and Alexander
Hamilton expressed the hope that within
o years interest would be reduced TO 4
'er cent. Since those earlier and better
ays, the government has legislated in
nancial matters directly in favor of the
money lenders, and they are rapidly abb
orbing the entire wealth of the people.
Thirty-fye years ago l taught school 4,
a town situated in one of the most
ertile counties in the upper Willamette
alley. At that time a gentleman with !
email basketful of type and hand
ress was publishing q weekly news
aper. He then was not worth prob J
bly, nearly as much as anyone OF 100 !
lrmers that lived about the village.
hortly afterwards he sold his paper
nd went into the banking business.
.fter the lapse Of third of a century, /,
ne farmers alluded TO, after toiling and !
'orrying the whole year round, year !
tter year, in summer heat and winter !.
hin, are worth no more now than then. !,
lille the banker, without such toll and :
'orriment, has accumulated wealth suf-
cient TO buy out the whole 100 farmers =
nd have q large pile left. Is not a sys- :
Nm Of finance which thus allows fha =