He Believes In The Two Per Cent Loan Attorney Williams, Of Milan, Comments Upon George A. Mcdougal's Paper Before The Farmers' Association
Editor Argus : - I notice in Tuesday's Argus, the synopsis of Mr. McDougal's paper read before the Washtenaw Farmers' Association. It would seem thát Mr. McDougal has two proposed plans confounded. His remarles might in a measure apply to the sub treasury scheme, but have no application to the two per cent land loan bilí of senator Stanford. In it there is no provisión for establishing sub treasuries. It provides for the issue of ioo, 000,000, in notes (if this pleases you) and gives them a partial legal tender quality. These notes to be loaned to such persons as can give the specified security. There is no chance under the Stanford bilí to malee an over issue or of such an amount as to allow them to deprecíate. It is far less than the amount loaned to the Banks at one-half the interest and upon which they have been receiving a profit for a quarter of a century. Under the advanced thought which has been forced upon the people, in the last few years we have too much respect for Mr. McDougal's intelligence to suppose for a moment that he now believes that t is the redemption of one money with another which gives it its par value, but that it is its money funcions imparted by law. No two or more species of money clothed with he same money functions by the ame power requires a redemption n the other. They must stand equal until one or the other is acted upon by some force which destroys or supersedes the money functions. iedeemability of money is a relie of ank note promise. The Government might experience some trouble n keeping its loanable money out, ut in that case it would have accomplished its object and by denyng them the sight of being used as a banking reserve would destroy a great incentive to their boarding. The strongest opposition will come from that chlid born of National bankng while it has grown rich by the assistance which it would deny the farmers. Under the bill as introduced t will add but $100,000,000 to the circulation of the nation, provided all is called for. If the system works satisfactorily, and moneyed men or institutions refuse to loan their money upon rates at which farmers can live and add to their stores, the future will díctate the policy. This nation has become too vast and wealthy to think of $100,000,000 of its notes, issued for such a purpose, ever depreciating. The farmers never asked to be allowed to liquídate at 40 or 50 cents upon the dollar, while every one who went into debt from 1861 to 1869 had to liquídate at about two hundred cents upon the dollar. We need o be careful not to get the sub-treasury bill confounded with the land loan bill. The one would loan upon chattels, the other upon land at half its value, less building improvements. If the government got a farm occasionally, it would be in an effort to help a citizen, and not an effort to secure the entire profits with some additions. Every financial stringency which has ever occurred in any civilized country, so far, has been the direct result of enacted law or Consolidated agreed bank action.