Laredo Weekly Times

From Saturday's Daily.

THE GOVERNMENT LOAN.

It is perhaps not generally known that the money which the government is advancing for the purpose of moving the crops is as available for the small town banks as it is for those in large centers. The general impression has been that those in need of money would have to apply to the large city bank.

The government's plan is to advance the money to the banks in large centers at the nominal interest of 2 per cent. These banks in turn are to lend the money to the country banks as needed, and at no time are they to refuse the loans asked when the collateral is sufficient, and they are not to ask an exorbitant rate of interest. In case of any violation of these considerations, the loan from the government would be called in at once.

Already some of the money has been deposited, and it is expected that the entire $50,000,000 will be in the hands of the Southerners and Western bankers before the end of next month. Because the cotton crop is the first that will require large sums of money to handle, the banks in the cotton belt will receive the first installments. If more is needed, Secretary McAdoo announces that it will be forthcoming.

A part of the money advanced by the treasury department will be kept available as late as March 1, in order that the farmers may hold their crops if the earlier prices do not suit them. This will prevent any stringency of the money market such as usually occurs about the first of each year.

As was to have been expected, the move has met with a great deal of adverse criticism from Wall street. Most of the money masters' profits in the fall of each year come from the farmer, as the country banks are obliged to call upon the city banks for an advance to aid in the crop movements. Therefore, any plan which will obviate the necessity of the farmer paying high interest to get the necessary money will meet with the disapproval of the men who deal in money.

And yet, a similar action on the part of the United States authorities has frequently saved the big Wall street bankers in time of panic. As far back as during the administration of Grant the United States secretary of the treasury advanced huge sums of gold to the bankers to relieve the pressure which threatened to disrupt their banking houses. And that was only a wise and beneficent move in their estimation.

Our government is becoming wiser each year. The aid of the agricultural department, once merely that of an advisor, has become absolutely necessary to the farmer. And now the treasury department is being used to help the citizens at large, instead of being kept as a very present aid in time of trouble for the big bankers.

There are few who will doubt the wisdom of the present move. It is calculated to help not only the producer but the consumer as well. Anything which will let the farmer have the necessary means of moving his crops without the payment of exorbitant rates of interest is a saving to the consumer of his produce.

It is safe to say that the present action of the government has been gratifying to the people, whether or not it is pleasing to some of the monied interests. And that, after all, is the sure test of the value of any administrative act--whether it is beneficial to the people or to a certain class.