Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1890-12-17
THE UNITED STATES BANK.

sonaI Property.
1t is now almost one year since the
sub-treasury plan was given to the
public During that time it has been
discussed to an extent unequaled by
any other economic question during the
past quarter of century. When first
proposed IT was rece we'd with ridicule
and contempt by nearly all the politi-
clans and a majority of the press After
bill had been formulated and intro
duced into Congress, its principles be-
gan to be considered and its objects
carefully examined by many candid
persons. But when petitions for its
passage from all sections of the country
began to pour in upon the members of
Congress, it became evident that some
thing had to be done to check
its growth among the people. 1t
is matter of almost, if not quite, GER
tainty that the members from sections
where the Alliance was strongest met
in caucus and determined upon course
of action. The similarity of all the let
ters written by them. together with the
continui ty with which they were sent
out, and their publicat on by the same
papers, all tend to show a concert of
acton in regard to the bill. 1t was
declared unconstitutional without dis
closing wherein it violated the provis-
ions OF the Constitution 1t was de-
clared Wis ionary and impracticable
Then the details were discussed in a
most ridiculous and childish fashion,
winding up always with the advice to
vote for free trade as the one great
panacea
Such letters were sent out by those
who considered their election perfectly
safe as rule, which also confirms the
idea of an understanding among the
members In the meantime the friends
of the measure were searching every.
where for precedents and arguments to
sustain the principles contained in the
plan. AS is usual in such cases, they
went too far from home, for, after
searching the history of the Old World,
recourse was had to the past history of
our own Nation, and 10, precedents, de-
cisions of the courts and acts of Con-
gress were found in plenty to show be.
yond question that the principles of the
sub-treasury bill are constitutional
and have been enacted into law in this
country. 1t was taken for granted
when congressman and Senators de.
cared the provisions of this bill
uncons stitutonal that they were honest
in the r declarations and that the
United States Government had never
directly loaned money to the people.
AS a result no search was made in that
direction; but after arguing upon the
justice and equity of the measure, and
citing precedents that leaned toward
the principles of the bill, an inyestiga-
tion proves that the Government has
loaned money and that some of the very
men who declared the sub-treasury bill
unconstitutional because it's underlying
principle was Government loans, had
not only voted for but urged the passage
of bill similar in principle Such ig-
norance or insncerity has led to further
examination, and the fact is perfectly
plain that the prime pies and nearly the
details of the sub-treasury plan were
practiced by the first and second United
States banks
The act Incorporating the first United
States bank was passed February 25,
1791 1t provided for capital of S1O,-
600, 600 Of which the Government was to
subscribe 81 600, 600. The act begins
with this preamble:
Whereas, II is conceived that the establish.
ment of bank for the United states, upon q
foundation sufficiently extensive to answer
the purposes intended thereby, and at the
same time upon the principles which afford
adequate security for an upright and prudent
administration thereof, will be very condu-
Give to the successful conducting of the Ma.
Tlonai nDances; VIII Uenq 10 give facility to
the obtaining of loans, for the use of the
Government in sudden emergencies and will
be productive of considerable advantage to
trade and industry in general, therefore
Then follow the conditions governing
directors and other matters to section
10, which prov des:
The said corporation may sell any part
of the public debt whereof its stock shall
be composed, but shall not be at liberty
to purchase any public debt whatsoever; nor
shall directly or indirectly deal or trade in
any thing, except bills of exchange, gold or
silver bullion. or in the sale OF goods really
and truly pledged for money lent and not re-
deemed in due time of goods which shall
be the produce of its lands. Neither shall
the said corporation take more than at the
rate of six per ccntuin per annum, for or up
on its loans or discounts.
This proves conclusively that the
United States Bank, of which the Gov
ernment was partner to the extent Of
one-ffth of its capital stock, loaned
money on pledges of personal property.
And further, that it sold these pledges
after certain time had expired. Thera
is no going behind this evidence that
away back in the early life of the Ma
ton, by its first banking act the prin-
ciples Of the sub-treasury plan were
substantially recognized and enforced.
What is the sub-treasury plan but the
pledging of personal property for the
loan of money from the Government?
And what does the section quoted above
mean if 1t is not the en- forcement of iust
such proposition?
But this is not al. In the act incor-
porating the United States Bank.
passed April 10, 1915 there is a point of
vital interest to those who are demand
ing loans on land security. Sect. IL
part :, provides;
The lands, tenements and hereditaments.
which it shall be lawful for the said corpora.
ton to hold, shall be only such as shall be
requisite for its immediate accommodation
In relation to the. convenient transaction of
its business, and such az shall have been
bona tide mortgagcd to II by way of security.
or conveyed to it in satisfaction OF debts
previously contracted in the course of fits
dealings, or purchased at sales upon iudg-
ments which shall have been obtained for
such debts.
Here also is positive evidence that
the Government has been the main
steekholder in bank that did loan
money on land security. There is no
evading that point From these two
acts 1t is ascertained that the United
States has in times past loaned its
money upon both real estate and per.
sonal property If it was lawful to do
SO then, why is it unlawful to do SO now?
II those who have pronounced the
measure unconstitutional had examined
into the matter the humiliation Of this
complete overthrow might have been
prevented As Ii is, the bill will be
pressed with renewed vgor, and either
the sub-treasury plan or something