The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-01-23
GOVERNMENT LOANS.
Moorhead News. (Rep.)

MOOrneau news. lhep.J
When the idea was first advanced
that the government should loan
money to the people it found few adj
herents. and was laughed off the po-
litical stage. The editor of the News
was among those who pooh-poohed 1T.
He has changed his mind in the light
of discussion and study and now be-
lieyes that it involves sound and liy-
ing principle The thing is done now
by indirection and the circuitOus pro-
cess robs it of two-thirdS of its bless
ingS, so far as the mass is concerned.
The reform that should be carried out
is to do it directly, in the same man.
ner that the postoffice is done by direct
contact with the people.
The government has the monopoly
of creating money and of compelling
citizens to surrender part of their
holdings to it, Having the sole right
to make it and to procure it by man
date, why should it not be loaner
rather than borrower? If an indi-
vidual had the monopoly of making a
thing that everybody else wanted,
would he not be considered fool or
an imbecile if he should borrow and
pay a premium for so much of that
thing as he wanted for his own use
rather than go TO work and make it?
But how does the government loan
money citizens? 1t issues money (pa-
per- to national banks and the banks
in turn loan it to citizens. 1t also
places money on deposit with banks,
w G n In ~
first case the bank is assessed slight
tax; in the other no interest or charge
whatever is imposed upon the banks,
but the people have to pay from to
10 per cent per annum for the use of
the money.
Take the state governement instead
of the United States government. The
funds of the state are deposited in the
banks throughout the state, for which
3 per cent is paid for it's use. They
loan it to citizens at 6 to 10 per cent.
What security does the state have for
the return OF its moneys? Bonds of
the bank, which Oftenprove worthless.
If by defalcation, embeZzlemet, unsafe
and unjudiciOus Investments, the bank
where the state money is deposited
fails, the chance of recovering it is
made doubtful and often the loss is
with banks are considered to be in
consonance with sound public policy,
as it puts the surplus moneys of the
state in circulation and into actual
use, fulfilling the demands Of trade
and commerce, and without which
they would lie dormant and unused
and would produce contraction and
stringency. Very we'll. So far the ar
gument is good. But why should the
government of nation or state use it's
power to build up class Of men with
special privileges: The banks are use
full agencies in every community. but
why should the people who paid their
money to the government in shape of
taxes, be compelled when their Cir
cumstanceS require, to borrow it from
the banks where it is deposited by the
government. at an advance of 5 to I
per cent? Why could not the govern
| ment loan money direct to the citizen
at per cent and take his security? 1t
would be just as good in the hands Of
the state as in the hands of the bank
officers.
This argument is based certainly on
the idea that the object of govern
ment is to prom ote the welfare of the
people in masses instead of classes
This ought to be the end and the aim
of Republican form of government
But the tendency for the past 30 years
has been, it seems to us and is, we be-
lieve, an indisputable fact, to foster
class instead of mass, to encourage
mbination in banks. railroads,
mines and forests, and to give these
combinations free opportunity to levy
upon the earning capacity of the mass,
until today the condition confronts US
that the controlling power in govern
ment is the servant of the classes and
the masses are represented by help
less minority.