Government loan

“ Financial measures, of various kinds, for borrowing money to supply the wants of the treasury, beyond the receipts from taxation and the sales of the public lands, have been adopted by the government since the United States became an independent nation. Subscriptions for a loan of twelve millions of dollars were, on the 4th of August, 1790, directed to be opened at the treasury, to be made payable in certificates issued for the debt according to their specie value. ”

“ Sound policy demands that Government expenditures be reduced to the lowest amount which will permit the various services to operate efficiently and that Government receipts from taxes and salvage be maintained sufficiently high to provide for current requirements, including interest and sinking fund charges on the public debt, and at the same time retire the floating debt and part of the Victory Loan before maturity. ”

“ That the best policy to diminish our burden of debt is to so improve our credit that capitalists will seek to loan us money at lower rates of interest than we now pay, and must continue to pay, so long as repudiation, partial or total, open or covert, is threatened or suspected. ”

“ IX. The Government undertakes not to issue any loans, Treasury Bonds or any other new bonds, and not to contract other loan of any nature whatsoever. This same engagement is entered into in the name of the Daira Sanieh. Nevertheless, in case the Government, from urgent national reasons, should find itself placed under the necessity of having recourse to credit, it may do so within the limits of strict necessity, and without doing anything to affect the employment of the revenues set apart for the Treasury of the Public Debt, or to cause their diversion from their destination. ”

“ If the Government should offer to loan the deposits at two and three fourths per cent, numbers of States, counties, and cities which now pay a much higher rate would be glad to refund portions of their debts, and, in consideration of the very low rate of interest, would doubtless be willing to so draw the bonds that in case of default the Government would have no difficulty in enforcing payment. It would of course be necessary that the investments be made with the greatest care, and that those who have the making of them should possess the confidence of the people in a high degree. ”

“ The present loan is not to be taken at any rate, unless the Government descends to the humiliating alternative of securing State endorsements. Our credit is going lower and lower every day, and it will soon come to the point where our bonds will be worth no more than Continental money was. ”

“ The ordinary resource in cases of deficit is a loan, but it may well be doubted whether, under the circumstances supposed, the credit of the Government would be particularly good. If loans could be obtained, which is the most favorable supposition, we should be saddled with a debt of about a hundred millions, probably at exorbitant interest, as the cost of this political experiment. ”

“ I am contrari-minded.
'A loan from the Federal Government is a federal matter and should be governed by federal law. There being no federal statute on the subject, the courts must fashion a rule. This is the clear holding of Clearfield Trust Co. v. United States. [1]
'To effectuate the policy of the Small Business Act, loans of many hundreds of thousands of dollars each year to businesses must be made throughout the country. These loans can be made only under conditions which will reasonably assure repayment. [2] I think the Act should be of uniform application throughout the country. ”

“ The Council will be clothed with authority to approve and schedule projects, to allocate on a fair basis the funds or credit which the Central Bank may from time to time mobilize to the loan portfolios of government lending agencies, to keep them within the approved pattern of allocation of available capital and the limitations established by law. We will draw upon our full credit capacity, backed by the guaranty of the Na­tional Government, to secure funds for this program. ”

“ The sum of $3 millions authorized to be raised by loan by an act of the last session of Congress has been obtained upon terms advantageous to the Government, indicating not only an increased confidence in the faith of the nation, but the existence of a large amount of capital seeking that mode of investment at a rate of interest not exceeding 5% per annum. ”

“ We must first of all attack as best we can the problem of our government finances. The projected loan from the United States Government will be only of transient value to us unless we immediately lay a sound and sensible basis for government financing. ”

“ The authority to incur new direct loan obligations, make new loan guarantee commitments, or modify outstanding direct loans (or direct loan obligations) or loan guarantees (or loan guarantee commitments) shall constitute new budget authority in an amount equal to the cost of the direct loan or loan guarantee in the fiscal year in which definite authority becomes available or indefinite authority is used. Such budget authority shall constitute an obligation of the credit program account to pay to the financing account. ”

“ When government loans are limited to the overflowings of the national capital, or to those accumulations which would not take place at all unless suffered to overflow, they are at least not liable to this grave condemnation. ”

“ But further, apart from the class of lazy annuitants thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation—as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven—the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy. ”

“ For several years past the revenues of the government have been unequal to its expenditures, and consequently loan after loan, sometimes direct and sometimes indirect in form, has been resorted to. By this means a new national debt has been created, and is still growing on us with a rapidity fearful to contemplate—a rapidity only reasonably to be expected in time of war. This state of things has been produced by a prevailing unwillingness either to increase the tariff or resort to direct taxation. But the one or the other must come. ”

“ Nobody expects that we can pay as fast as the debt matures, but we shall be compelled to go into the market and negotiate new loans. Let this system of taxation be pursued; let another Congress put the tax at twenty per cent., another at forty per cent., and another at fifty per cent., or one hundred per cent.; let the principle once be adopted—the rate is only a question of discretion—and where will you be able to negotiate a loan except at the most ruinous sacrifice? Let such legislation prevail as the gentleman urges, and can we look any man in the face and ask him to loan us money? ”

“ The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins.
You see, the flow of credit is the lifeblood of our economy. The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll. ”

“ A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus. ”

“ The article in question declares the debt due by the state to the Agricultural and Mechanical fund to be $182,313.03, being the proceeds of the sales of lands and land scrip granted by the United States to the state for the use of a college for the benefit of agriculture and the mechanical arts; directs that said amounts shall be placed to the credit of said fund on the books of the auditor and treasurer as a perpetual loan; that the state shall pay an annual interest of 5 per cent. ”

“ Governorates and regional governments may, upon notification to the Minister of Finance,
raise funds through borrowings, and issue loan guarantees subject to the debt limit set in the
annual budget law, and to the specific debt limit set for each entity under the apportionment
approved by the Council of Ministers on a recommendation of the Minister of Finance. ”

“ Let it be understood that no repudiator of one farthing of our public debt will be trusted in public place, and it will go far toward strengthening a credit which ought to be the best in the world, and will ultimately enable us to replace the debt with bonds bearing less interest than we now pay. To this should be added a faithful collection of the revenue, a strict accountability to the Treasury for every dollar collected, and the greatest practicable retrenchment in expenditure in every department of Government. ”

“ The expansion of credit facilities by the Federal Reserve System and the Reconstruction Finance Corporation has been of incalculable value. The loans of the latter for reproductive works, and to railways for the creation of employment; its support of the credit structure through loans to banks, insurance companies, railways, building and loan associations, and to agriculture has protected the savings and insurance policies of millions of our citizens and has relieved millions of borrowers from duress; they have enabled industry and business to function and expand. ”

“ Every kind of loan proves infirmity in the State and a want of understanding of the rights of the State. Loans hang like a sword of Damocles over the heads of rulers, who, instead of taking from their subjects by a temporary tax, come begging with oustretched palm of our bankers. Foreign loans are leeches which there is no possibility of removing from the body of the State until they fall off of themselves or the State flings them off. ”

“ The idea that such a debt is to become permanent should be at all times discarded as involving taxation too heavy to be borne, and payment once in every sixteen years, at the present rate of interest, of an amount equal to the original sum. This vast debt, if permitted to become permanent and increasing, must eventually be gathered into the hands of a few, and enable them to exert a dangerous and controlling power in the affairs of the Government. The borrowers would become servants to the lenders, the lenders the masters of the people. ”

“ The first installment of the loan of $2,000,000 from the Bank of the United States has been paid, as was directed by law. For the second it is necessary that provision be made.
No pecuniary consideration is more urgent than the regular redemption and discharge of the public debt. On none can delay be more injurious or an economy of time more valuable. ”

“ Whether the Money of any Nation be coin or paper or both, when once it is in the hands of the People, Government has properly nothing to say about the rate of interest at which one person loans this money to another. Usury Laws so-called, prohibiting the lender from taking more than a prescribed rate % for the use of money loaned, under penalties sometimes of the entire interest and sometimes of the entire debt have disfigured the statute-books of all Nations and of all the States of this Union. ”

“ Congress has the right at any time to emit bills of credit and to declare them a legal tender in payment of pre-existing debts. The man who lends another one thousand dollars to-day is without any remedy at law if his debtor at the maturity of the loan tenders him depreciated paper money which Congress has clothed with legal tender power. ”

“ Year by year the ability to pay increases in a rapid ratio. But the burden of interest ought to be reduced as rapidly as can be done without the violation of contract. The public debt is represented in great part by bonds having from five to twenty and from ten to forty years to run, bearing interest at the rate of 6 per cent and 5 per cent, respectively. It is optional with the Government to pay these bonds at any period after the expiration of the least time mentioned upon their face. ”

“ That money needs to go directly to the American people in the form of loans -- whether it's a student loan, or an auto loan, or a small business so that it can meet its payroll. That's what the financial stability package should do, and that's what he's asked his team to ensure that is put together so that the next money that's spent to stabilize our financial system is spent differently and more transparently than that first set of money was used for. ”

“ The burden of paying the interest on this mortgage, and the final payment of the principal, is wholly on the capable and industrious members of the family.
National debts are incurred to relieve the present wealth of the burden of present government calls and obligations, and to roll it upon those who shall produce wealth in the future. So the debt of a city, state, or nation is a present relief to property holders, by placing the producers under future obligations.
A street in a city is to be paved; no additional tax is levied; but bonds are issued running twenty years. ”