The midland journal. (Rising Sun, Md.) 1885-1947, 1891-06-26

tobacco is received by him on deposit, as above
provided, to give warehouse receipt showing
the amount and grade or quality of such cot
ton, tobacco or grain, and its value at date of
deposit; the amount of treasury notes the SUBJ
treasury has advanced on the product; that
the interest on the money so advanced is at
the rate OF per cent. per annum, expressly
stating the amount of insurance, weighing,
CHASING, warehousing and other charges that
will run against such deposit of cotton, grain
or tobacco. All such warehouse receipts shall
be negotiable by Endorsement.
Sec Q. That the cotton, grain or tobacco
deposited in the sub-treasury under the pro-
visions Of this act may be redeemed by the
holder Of the warehouse receipt herein pro-
vided for. either at the sub-treasury in which
the product is deposited, or at any other sub
treasury, by the surrender of such warehouse
receipt, and the payment in lawful money of
tho United States Of the same amount origi-
nally advanced by the sub-treasury against the
product, and such further amount as may be
necessary TO discharge all interest that may
have accrued against the advance of money
made on the deposit of produce. and all insur-
ance, warehouse and other charges that attach
to the product for warehousing and handling.
All lawful money received at the sub-treasury
as a return of the actual amount of money
advanced by the government against farm
products as above specified shall be returned.
with q full report of the transaction, to the
secretary OF the treasury, who shall make rec
ord Of the transaction, and cancel and de-
stroy the money SO returned. A sub-treasury
that receives u warehouse receipt as above pro-
vided, together with the return of the proper
amount of lawful money, and all charges as
herein provided. when the product for which
1t is given is stored in some other sub-treasury,
shall give an order on such other sub-treasury
for the delivery of the cotton, grain or tobacco,
as the case may be, and the secretary of the
shall nravida fnr No odi on ho.
tween sub-treasuries of all charges.
Sec. Z. The secretary of the treasury shall
prescribe such rules and regulations as are
necessary for governing the details of the
management Of the sub-treasuries, fixing the
salary, bond and responsibility of each of the
managers of sub-treasuries provided that the
salary of any manager of a sub-treasury shall
not exceed the sum of 81 500 per annum), hold
ing the managers of sub-treasuries personally
responsible on their bonds for weights and
classiications Of all produce, providing for the
rejection Of understandable grades of cotton,
grain or tobacco, or for such as may be in bad
condition, and shall provide rules for the sale
at public auction of all cotton, corn, oats,
wheat or tobacco that has been placed on de-
post for longer period than twelve months,
after due notice published. The proceeds of
the sale of such product shall be ap-
piled, first to the reimbursement of the SUBJ
treasury of the amount originally advanced,
together with all charges, and, second, the bal
ance shall be held on deposit for the benefit of
the holder of the warehouse receipt, who shall
be entitled to receive the same on the surren-
der of his warehouse receipt. The secretary
of the treasury shall also provide rules for the
duplication Of any papers in case of loss or de-
struction.
Sec. 8. 1t shall be the duty of the secretary of
the treasury, when section of this act shall
have been complied with, to cause to be erected,
according to the laws and customs governing
the construction of government buildings, a
suitable sub-treasury building, with such
warehouse or elevator facilities as the char
acter and amount of the products of that Sec
ton may indicate as necessary. Such build
ings shall be supplied with all modern con-
veniences for handling and safely storing and
preserving the products likely to be deposited.
Sec.0 That any gain arising from the charges
for insurance, weighing, storing, chasing, hold
ing, shipping. interest or other charges, after
paying all expenses of conducting tho sub
treasury, shall be accounted for and paid into
the treasury of the United States.
Sec. 10. The term of Office of q manager Of
sub-treasury shall be two years, and the regu-
lar election to fill such office shall be at the
same time as the election for members OF the
house of representatives of the congress OF the
United States. In case of o vacancy in the
Office of manager of the sub-treasury by
death, resignation or otherwise, the secretary
of the treasury shall have power to appoint
Sec. H. Tho sum of SJ0,0O0,000, or SO much
thereof as may be found necessary to carry out
the provisions of this act, is hereby appropri- |
ated out of any moneys in the treasury not
otherwise appropriated, for that purpose.
Put in q nutshell, the provisions of the |
bill are that the government shall ware
house non-perishable farm products, and
upon this security shall loan to the pro-
ducer or borrower 80 per cent. of the
market value of the goods in legal tender |
money, at the nominal rate of per cent. |
interest, To illustrate: A farmer has
10000 bushels of corn, which at current |
rate is twenty-five cents per bushel, or |
s., 500. He wishes to hold the corn for
a higher market, but he must have some
ready cash. He puts the corn in a gov
ernment warehouse and receives a GER
tificate of deposit, which itself is negoti-
able, and also loan of so per cent. of
the value of the grain, or 1000 in cash.
He can redeem the corn at his pleasure
on payment of the principal and interest
at the rate Of per cent. per annum.
This is the measure upon which the
Alliance has based its first years fight.
1t was received at first with indifference
and almost with ridicule. It was with
that its introduction in con-
gress was secured, but before the session
ended it had become subject full of ap-
prehensive interest to southern and west
ern members. At first the bill was in
discriminatory denounced as unconstitu-
tional; but this attack has been SO
repelled that it has been prac-
tically abandoned. The defenders of the
measure havefound so many decisions of
the supreme court affirming the consti-
tutional right of the government to loan
in the case of the Cen
tennial exposition in 1S76-that this
ground of objection is no longer relied
upon.
The opposition now centers, in general
terms, in the two arguments that the
proposed measure is class legislation of
the most offensive sort, and that it is pa
ternalism of the most pronounced type.
It is not my purpose to deal with the ar
guments on either side of these questions.
It is battlefield upon which the oppos-
ing forces have but just been arrayed.
and it is too early to forecast the issue.
The Alliance leaders are entitled to have
quoted for them one precedent, to which
hey point as an example of paternalism
more extreme and class discrimination
more rank than is contemplated by their
'ub-treasury plan.
The present internal revenue laws,
hey affirm, do more for the distillers /,
4. 4.