346 HISTORICAL AND POLITICAL. 



The effect of the introduction of this system, as has been foreshadowed 

 above, is very different from what is generally supposed by those who 

 have read only newspaper criticisms. There is no direct benefit to the 

 farmer, only as it removes discriminations against him ; no direct benefit 

 to him in the warehousing feature. The present law is not considered 

 to be made in the interest of the owner of silver or gold bullion or 

 whiskey, on account of the fact that the government warehouses hold 

 those products : and so it is with the sub-treasury ; the benefit does not 

 flow from the warehousing, but from the fact that money is put in cir- 

 culation when it is needed to keep prices from falling. The result will 

 be a powerful tendency towards stability of price. There will be no dis- 

 crimination for or against any class, but an equal benefit to all. There 

 are absolutely no favors extended to the farmer, but he is given a chance 

 to help himself simply by having the present discriminations against him 

 removed. 



Of course there are many objections raised against the bill. Nearly 

 all relate to its details. Upon the question of its constitutionality, I will 

 quote from an article by N. A. Dunning, in the National Economist, 

 which places that point beyond further controversy. He says : 



" The favorite objection to the sub-treasury bill is its unconstitutionality, yet no 

 one has ventured an argument upon that line. In view of the fact that this bill has 

 been so widely discussed, more so perhaps than any other matter of legislation dur- 

 ing the past twenty years, it is somewhat strange that the proof of its being unconsti- 

 tutional has not advanced beyond mere assertions. So far all objections have been 

 confined to the details of the plan, while its principles have been entirely ignored. 

 The main points in the bill involve the right of the government 



" I. To purchase land. 



" 2. To build warehouses. 



"3. To appoint agents. 



" 4. To receive deposits. 



"5. To loan money. 



" Upon the constitutionality of these propositions the sub-treasury bill must stand 

 or fall. It has been said before, and it is well to repeat, that the most ardent sup- 

 porter of this measure desires to have all its provisions strictly within the limits of 

 the Constitution. The right of government to purchase land, build warehouses, 

 appoint agents, and receive deposits of grain, merchandise, and the precious metals, 

 is so clearly and fully set forth in the system governing the execution of the internal 

 revenue laws, the customs laws, or those of the Treasury Department as to need no 

 repetition at this time. No functions of government are more clearly defined or 

 practically applied than are these, as shown by the following incident. Learning 

 that the basement of the post-office at Kansas City, Missouri, was being used as a 

 warehouse for whiskey, a communication was sent to the Commissioner of Internal 

 Revenue, which elicited the following response, dated July 12, 1890, from Assistant 

 Secretary of the Treasury George S. Batcheller : 



