The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1890-06-28

THE WAREHOUSE SCHEME

A frend-a good Republican, by the
way-handed us a copy OF Senator
Reagan's recent letter to branch Of
the Farmers Alliance in Texas. in OPP
position to the Alliance Warehouse or
,;ubtreasury scheme, and fully endors-
ing all the Texas Senator says, sug-
gests that we publish the letter for
the enlightenment Of Alliance men in
this region. The letter would occupy
much more space than we can con-
venlently spare: besides, we do not
imagine that in this region it is neces-
sary. The scheme to build govern
ment warehouses in several thousand
counties throughout the country,
place them in charge Of an army OF
newly created and highly paid Office
holders, receiving farm products in
store at such warehouses and issuing
on them paper money TO be loaned 10
the farmers at a low rate Of interest,
is so wild and quiXotic that few men
in their sober senses in the cool north
at least are in danger of being dcluded
by such a jgnjS totupS. Mr.. Reagan
dsposes Of the business IN an argu-
mcnt or two that are perfect settlers.
In the first place, there is no power in
the constitution authorizing congress
to enter into any such loan brokerage
and bucket shop business; and second
". it would involve such liability to
sudden enormous expansions and con
fractions of the currency as would be
ruinous to the government and every
kind of business.
While il is thus an easy matter for
a man like Senator Reagan, and Sena-
tor Carlisle, who has also written a
vigorous letter on this subject, as well
as other men capable Of inteiligently
handling the matter, to point out the
utter impracticabilty and folly OF the
proposed warehouse and subtreasury
scheme, it is not "A little remarkable,
however If not startling, that the
''gOld-bugs,' or mOnometalllstS, who
have got control of the house at Wash
ington on the silver question, have
actually embodied this very same
principle in the house silver bill. 1t
Is the Window or administration
scheme, and is covered in the provls-
ion Tor bullion redemption" The
silver Of the miners products OF the
farmers) is to be stored in the u. 5.
treasury government warehouse and
paper to the amount OF its market val
Ne at the time OF storage is TO be is
sued on it and ''lOaned" to the miners
lfarmers), said bullion to be returned
to the miners Farmers or holders OF
the paper, on its presentation at the
treasury, the same as the farmer UNI
der the alliance plan is TO get his grain
out Of the warehouse.
Hitherto silver had ever been re-
garded as one Of the precious metals,
and though it might get into the
treasury as bullion to secure silver
certificates issued upon it, when it
came out it came out only as coined
into money. Thus the;e could be no
contraction of the currency, for when
a note was surrendered the silver coin
took its place. But under this ware
housing system of bullion redemption,
the same contraction takes place when
the notes are surrendered that Mr..
Reagan says will take place when the
farmers reclaim their grain. What
difference, then. is there, in the light
OF the constitution or common right,
between the deposits or bullion and
issuing notes upon 1t, unless we pro-
pose to coin the bullion, and receiv-
ing corn, oats, wheat, cotton or pota-
tos on deposit and issuing notes there
on?
There is not a goldbug or monom-
etallist in Wall street, or in London
or Amsterdam, but will boot at the
Alliance scheme as the acme Of absurd
ity, and yet, for the sake OF theenorm-