Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-05-24
SUB.TREASURY SCHEME.
Senator Reagan Tells the Alliance Why
He Cannot Support the Measure.
Such an Act Would Make the Government of
the United States Great Merchant
and Money Lender.

Senator Reagan has written the fol-
lowing letter in answer TO the many
resolutions and letters he has received on
the subject, and which he finds it impos-
sible to answer individually:
UNITED STATES SENATE. !
WASHINGTON, D. c., May 20, 1890.
t. McRae, ESQ.,, Secretary of Bexar County
Alliance, San Antonio, Tex:
DEAR SAVIOUR letter OF the 9Th inst. was
duly received, enclosing to me the resolutions
Of the Bexar county Alliance, expressing ap-
proval Of what is called the bonded warehouse
or sub treasury system, by which I understand
is meant that your Alliance approves the pro-
visions Of senate bill No. 1876, introduced by
Senator Vance, by request, and the provisions
OF similar bill introduced in the house of rep
resentatives.
In your letter enclosing to me a COPY of these
resolutions you kindly say: cit is with great
plea sure that have an opportunity TO oonmu-
nicate our desires to one whom we all know is
with the people in their struggle for their rights,
You have always been with u.s.
thank both yourself and the Bexar county
Farmers Alliance for their recognition of my
devotion to the interests af the people. And it
viii be most gratifying to me if can continue to
command their confidence. And it is with sin
cere regret that End myself unable to support
9 measure which meets their approval.
We all subscribe to the doctrine that the Fed
eral government is one of limited and delegated
powers, ana Nnat, In the language OF the consul
tuition, The powers not delegated to the
United States by the constitution, nor prohibited
by it 70 the states, are reserved to the states
ers conferred on the United States by this con-
sttution is that congress shall have power to
borrow money on the credit of the United
States.' But 1t contains no grant OF power to
the United States to loan money, either by its
express terms or by implication necessarily
arising from some other grant OF power.
do not, therefore, see how congress can pass
q law to enable the United States TO loan the
people so per centum Of the value of their crops
and take Their produce IN pledge Tor the repay
am aware that the argument is used that the
government loans money to the national banks
bonds; and that on this assumption it is urged
that it may loan to the farmers on the security
OF their produce. But deny the right of the
government to loan money. And II 1t should be
held that the notes furnished the national
banks for circulation are loan, my
answer would be that any violation OF the
violstion Of il. have for years combatted the
policy of allowing the national banks to exer-
else the power Of Issuing money for circulation.
On q memorable occasion IN the year ISIS they
demonstrated the danger Of allowing them to
control the volume Of the currency by suddenly
contracting its volume 70 dangerous extent, in
restore silver coinage. This should have caused
congress to take from them the power to in
crease or diminish the volume OF the currency.
The organization OF the system OF national
banks was at first proposed IS temporary ex-
pedient to sustain the finances of the govern
ment during the war; the banks being employed
as fiscal agents. I express no opinion as to
whether the notes furnished them for circula-
tion would be held 70 be loan. However, that
may be, the government does not undertake to
build banking houses, and to provide othcers at
the public expense TO conduct their business, as
Is provided for in the bills under consideration.
We shall not lose sight Of the fsct that the
governmental the United States was organised
and adopted BY the states and people Is politi-
great mercantile establishment to deal in prop
erty and loan money. And the provisions OF the
constitution conclusively show that il
was Intended that the United States
should exercise its powers for the
special purposes OF its creation, and that the
government should not undertake the paternal
care and supervision of the personal interests Of
the people, One of the great political evils Of
our times. aud one OF the most menacing dan
gers TO the perpetuity OF our present system OF
government and 70 popular liberty in this eoun-