The Hazel Green herald. [volume] (Hazel Green, Wolfe County, Ky.) 1885-19??, 1891-05-15
The Sub-Treasury Plan.

TheSub-Treasury Plan.
Under this head we propose, in this
and subsequent issues of the Reformer,
to discuss some of the essential features
of the measure that seems just now to be
the principle point of attack on the ALI
ance from the partisan press of the cOun.
try. In doing so we shall not confine
ourselves to the provisions of the Picker
bill introduced in the House or to the
one introduced in the Senate by Senator
Vance, but to the demand of the Nation
al Alliance that the government "shall
loan money direct to the people at low
rate of interest, not to exceed 2 per cent
per annum on nonperishable farm prod
ucts." There are two prominent questions
involved in this measure:
l. The right of the government to is
sue money.
2. The right to loan money.
If the government has right to do
these things it has right to enact all the
measures necessary to carry them into ef
feet The purchase of land, building of
warehouses, appointment of agents and
receiving deposits are subsidiary matters
necessary to carry into effect the main
provisions of the bill-tO loan money.
The question of the right of government
to create and issue money of any materi-
al it chooses has been thoroughly discuss
ed in the February number of the Re.
former 1t seems to be we'll settled fact
that the right to issue paper money is in
herent in the government. 1t has been so
decided by the Supreme Court of the Uni
ted States and by nearly every state in the
Union. Every State in the Union has
availed itself of the right to pay its in
debtedness in legal tender paper money.
The only question now left to consider is,
has the government the right to loan
money to individuals on such security as
it may itself determine? This question
being settled it then remains to. be seen
whether the nonpershable products of
the farm is sufficient security upon which
TO warrant the government to loan mon
ey.
Has the government a right to loan
money to individuals on individual secu-
rity?
This question has been discussed to
considerable extent by the reform papers
throughout the country, but generally
from an abstract standpoint. The posi-
ton usually taken is, that inasmuch as
the government has loaned money TO cor
porations it has right to loan to indi.
viduals. In view of the numerous prec-
edents and the laws now upon the statute
books it would seem that the opponents
of the sub-treasury plan are esstopped
from denying the right of government to
loan money to corporations. 1t is our
purpose, however, to go deeper into the
problem and prove without the aid of
presidents or existing statute laws that
the government possesses the inherent
right, from the constitution, to loan mon
ey to farmers on nonperishable products
of the farm.
The general government is compact
between the states for and in the interest
of the people. The government therefore
is not government of the states, but
government of the people. The funda-
mental principle of the government is
" the greatest good to the greatest num-
ber." 1t was to "promote the general
welfare" that the constitution was franz
ed. The reader will do well to bear this
fact in mind, as upon it we propose to
predicate our argument in favor of the
sub-treasury plan. Now to return to the
money question. Power was given to
congress over the currency. Inasmuch
as this power is surrendered by the states,
when entering to the compact, it is most