The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-07-15


premises the Economist a. udes that
the Senator ought 10 know that
it would be quite as constitutional for
the government to to accept cotton, corn,
wheat, oais, tobacco, &C., on deposit
from anybody, as proposed by the bill,
b cause these products of the farm have
an "intrinsic value" aud advance money
on them to the extent Of eighty per cent
Of their market value, and charge inter
est thereon at the rate OF one per cent
per annum; and because Senator Vance
has not been able to see the anology be-
tween the two cases, as the Economist
thinks it sees it. he is charged with i'll
sincerity. This states the case, in effect,
exactly AS the Economist puts it; and
now if it shall be made to appear that
the Economist itself, and not the Sena
tor, is in error, will IT not be fairly open
to the charge, judging by its own utter
ances, Of trying to mislead the National
Alliance as to the constitutionality of
the Sub-Treasury bill? 1t certainly will
be unless it shall clearly justify its
charge of insincerity against him, and
this it cannot do. Now which is right?
The Economist contends that the govern
ment may, by taxation, CONSTITUTIONAL
LY draw money from the whole people,
and then loan it out to a limited number
on deposit by them of certain specified
farm products. 1t insists that be-
cause these products have ''intrin-
sic value," it would be just as
constitutional for the government to
loan money on them, as it is to issue
Treasury notes to the banks to the secu-
rity of its own bond obligations. Such
contention is manifestIy absurd. Even
the Economist ought to see that, in the
case of the banks, the people have not
been taxed an additional farthing, nor
does the government in effect loan the
banks any money at all. There is simp-
ly an exchange of one form Of govern
ment obligation for another for the con-
venence of the banking business, and
the government always requires a de-
poSit in its own bonds of an ample mar
gin, to protect it against the possibility Of
loss by reason of such exchange. But
in the Sub Treasury plan, neither the
tax payers, nor the government, have
any such protection. The proposition of
the bill is to collect by taxation hund-
reds of millions of dollars from all the
people yearly, and then loan it directly
to the farmers, as class, On the securi-
} y of certain farm products. Now, if
this be constitutional, why not extend
, the provisions of the bill SO as to EN-
brace all the varied and myriad products
of human labor, whether produced on
: the farm, or in the workshop, or else.
{ where? In other words, why not con.
S vert the government at once into a sOf;
$ of universal bondbrokerage establish
5 ment, SO that any one owning q
watch, or any other product Of human
labor, having ''intrinsic value" may 60
at his pleasure, and deposit the same il
} some sub-tre asury, and receive LOAF
8 upon it of eighty per cent. of its market
n value? The government, to be just
! should treat all alike and not tax all it
d citizens for the benefit Of only a part o
them rs it does now, under Republican
It rule, 10 maintain the protet tive system
:, Of which the farmers and all other con
d sumers have SO just a cause of complaint
e The position of the Economist, on tn
It Sub Treasury bill, has now been ia ri
/; stated, and no conclusion has bee
1t drawn therefrom which does not neces
e sarily follow, as logical sequence, an
&c in the opinion of the writer, it neede
e only to be stated to prove conclusively
st alike Its utter ABSURDITY, IMPR ACTICABII
rt ITY and UNCONSTITUTIONALITY
e. Senator Vance, then, Was clearly rigt
al in the reasons he gave why he could nc
~ support the measure, while the Ecom(
re mist is manifestly wrong for its advoc:
i'd cy of it; for it must know that the onI
to possibly effect of such advocacy, if
O. should have any effect at ALL will be
d. mislead the very people it proposes
ne serve, and to create in the minds of son
or Of the less intelligent farmers of til
OF country expectations they can never r.
by alize; and though such course may pa
as for the time, it will surely react in Il
ed end. OBSERVER.
he .----