266 HISTORICAL AND POLITICAL. 



the people need money, and how much of it they need, is to let them 

 tell it themselves to persons who are authorized to furnish the money. 

 When postage stamps or money orders are needed, the post-office, not 

 a bank or a loan agency, is sought. The post-office is established ex- 

 pressly to do that class of business, and all persons fare exactly alike. 

 There is no discrimination in the post-office, and there is no change 

 when the " money market " is agitated. There are no " Black Fridays " 

 in the postal business. The amount of money needed is not regulated 

 by rates of interest, but the amount asked for or actually used depends 

 largely upon what it costs. If it commands six to ten per cent in the 

 market, much less will be used than if the rate were two per cent or one 

 per cent, though the amount needed is the same. This rule is well 

 understood, and as applied here it answers a question which is often 

 asked : " How shall we get government money into circulation?" The 

 way is easy, the method simple. Establish agencies to supply the peo- 

 ple with money, leaving them to say how much they need, just as they 

 do now ; but let money go out at cost ; then a great deal more of it will 

 be used, and its effect will soon be seen in better prices and greater 

 thrift among producers. 



There are two classes of people needing money on loans, those who 

 want the use of it a long time, and those who want it but a short time. 

 This distinction renders necessary two different classes of agencies for 

 distribution, one for short-time loans on personal security, the other 

 for long-time loans on real estate securities. For the former purpose 

 national banks, under proper regulation, will do as well as any other 

 agency which could be devised, and probably better than any one of 

 some which may be suggested. But for the latter something altogether 

 different must be provided. For long-time loans let a loan bureau be 

 established in the Treasury Department (under direction of the comp- 

 troller of the currency, who now has supervision of the banks), con- 

 sisting of three commissioners, and agencies in the several States and 

 Territories, with such clerical assistance as may be needed, the com- 

 missioners to apportion the work and superintend its execution. A 

 central agency, located at the capital of a State, might be made the 

 distributing point for that State ; operating, through local agencies, at 

 such convenient places as would best accommodate the people, not 

 exceeding say five or seven in a State like Kansas, and twice as many in 

 Texas, five in Pennsylvania, three in Massachusetts, and so on, extent 

 of territory as well as population being considered in the apportion- 

 ment. The persons in charge of these agencies would enter into bonds, 

 as postmasters and other financial officers do. Long and abundant 



