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Volume III. MEMPHIS, MISSOURI, THURSDAY, JANUARY 18, ISM. Number rl THE FAR O t O H cj i k! 3 w (I) S S3 8 50 4 P M W S d k o o o SB (ft cr 5 5 I M c 4 (ft (ft A FINANCIAL HISTORY. Course and Effect of Legislation Since 1861. The Constitution provides that Congress shall have power to pass "all laws necessary and proper" for carrying into execution all the pewers granted to the government of the the United States, or any department or office thereof. The word necessary, as lised, is not limited by the additional word "proper'' but enlarged thereby. "If the word necessary .vas used in the strict, rigorous sense, it would be an extraordinary departure from the usual course of the human mind, to add another word, the only possible effect of which is to qualify that strict and rigorous meaning, and to present clearly the choise "of means in the course of legislation. If no means are to be restored to but such as are indispensably necessary, there can be neither sense or utility in adding the word 'proper.' for the indispensible necessity would shut out from view all consideration of the property of the measures." 3 Story's Commen taries, sec. 122. Alexander Hamilton, in discussing these high powers of the constitution says: "The authorities essential to the care of the common defence are those to raise arraes; to build and equip fleets; to provide for their support. These powers ought to exist without limitation; because it is imposible to foresee and define the extent and variety of national exigencies, and the corrcspeudent extent and variety of the means necccssary to satisfy them. The circumstances which en danger the safety of nations are infi nate; and for this reason no consti tutional shackles can wisley be im posed on the power to which the care of it is impossible" "This power ought to be under the direction of the same councils which are ap pointed to preside over the common defense." "It must be ad mitted as a necessary consequence, that there can be no limitation of that authority which is to provide for the defense and protection of the com munity in any matter esential to its efficacy ; that is in any matter essential to the formation, direction, or support of the national forces." This statement adds Hamilton "Kates upon two aximous, simple as they are universal; the means ought to be proportioned to the end; the persons from whose agencies the attainment of the end is expected ought to possess the means by which it is to be attained." Federalist, No. 23, pp. 95, 99. Congress may judge of the necessity in the present exigency. It may de cide whether it will authorize the Secretary of the Treasury to issue de mand Treasury notes, and make them a legal tender in payment of debts, or whether it will put its six or seven per cent bonds on the market at ruinous rates of discount, and raise the money, at any sacrifice the money-lender may require, to meet the pressing demands upon the Treas ury. In one case the government will be able to pay its debts at a fair rate of interest; in the other it must go into the streets shinning for the means, like an individual in failing circumstances, and shure of being used upin the end by the averice of them. Its capital is much greater. It has control of all the bankers' mon ey, and all the property of the thirty millions of people under its jurisdic tion. Why, then, shouid it go hrto Wall street, State, Chestnut street or any other street, begging for money? Their money is not as secure aa gov ernment money. All the gold they possess would not carry the govern ment for ninety days. They issue only promise to pay, which if con gress does its duty, are not half so secure as United States Treasury note based on adequate taxation up on all the property of the country. Why, then, go into the streets at all to borrow money? 1 am opposed in our present extremity, to all shifts of this kind I prefer to assert the power and dignity of the government by the issue of its own notes, pledg ing the faith, the honor and property of the whole loyal people of the country to maintain their circulation and provide for their redemption. Ou the question of constitutional proper we are not left without the re corded opinions of the ablest jurists in the country, 1 Kent's Com , 351 2; McCulloch v. The Slate of Maryland, 2 Wheat, It, 41320. Chief Justice Marshal, Daniel Webster and Judge Kent lay down the doctrine as follows: "The government of the United States is one of enumerated powers, and it can exercise only the powers granted to it; but though limited in the powers, it is supreme within its sphere of action. It is the govran- ment of the people of the United States and em 'mated from them. Its powers were delegated from all, and it represents all, and acts for. "There is nothing in the Constitution which excluded incidential or im plied powers. The articles of Con federation gaye nothing to the United States but what was expressly granted but the new Constitution dropped the word expressly, and left the question whether a particular power was granted to depend on a fair con struction of the whole instrument. No constitution can contain'an acurat detail of all the sub-division of its powers, and all the means by which they might be carried into execution. It would render too prolix. Its nature requires that only the great outlines should be marked and its im- I portant objects designated, and all the minor ingredients left to be de ducted from the nature of those ob jects. The sword and the purse, all the extern-1 relations, and no incon siderable portion of the industry of the nation, were entrusted to the general government; and a govern ment entrusted with such ample powers, on due execution of which th? happiness and prosperity of the people vitall' depended, must also be entrusted with , ample means for their execution. Unlets the words impersiously require it, we ought not adopt a construction which would im pute to the framers of the constitution when granting great powers for the public good, the iutention of impend ing their exercise, by witholding a choice of means. The ppwers given to the government imply the ordinary means of execution; and the govern ment, in all sound reason and fair interpetations, must have the choise of the means which it deems most convenient and appropriate to the execution of the power. The Con stitution has not left the right to Congress to employ the necessary inert us for the execution of its powers word necessary admits of all degrees of comparison. A thing may be necessary, or very necessary; or ab solutely or indespensably necessary. The word is used in various senses; and in its construction the object, the context, the intention, are all to be taken into view. The power of the government were given for the welfare of the nation. They were intended to do for ages to come, aud to be adopted to the various crises in human affairs. To prescribe the specific means by which government shoukl in all future time execute its power and to confine the choice of means to such narrow limits as should not leave it in the power of Congress to adopt any which might be approp riate and conductive to the end, would be most unwise and pernicious, be cause it would be an attempt to pro vide by immutable rules, for ex igencies which, if foreseen at all, must have been foreseen dimly, and would deprive the legislature of the capacity to avail itself of experience, or to exersize its re son, and accom modate its legislation to circum stances. If the end be legitimate, and within the scope of the Constitution all means which are appropriate, and plainly adapted to this end. and which are not prohibited by the Con stitution, as lawful." It is plainly within the scope of the Constitution that the government should maintain itself; that the navy should be maintained. The ways and means of doing this are left to Congress to provide. Congress may do this entirely by taxation. It may- provide by law to levy and collect taxes enough every year to pay the whole expenses of the war during each current year, and so 'pay as we go." It may issue six per cent bonds and sell them on the market for what they will bring even if they will not sell for over fifty cents on the dollar To raise money to carry on the war. it may iss-.e treasury note payable on demand, ami make them a legal tender in payment of all debts Either one or all these mode of pay ing the expenses of the government is left to the discretion of Congress Either mode is constitutional; and it is left to the sound discretion of Con gress to decide which mode it will adopt, or whether it will adopt a part of each, as being the best in the present crisis. My own impression is, that it will be best for us to adopt, in part, all of these modes for providing the means. 1. liaise by taxation the current year over and above the amount re ceived from duties on imports, the sum of $150,000,00(1. 2. Issue $100,000,000 of demand Treasury notes in addition to the $500,000,000 authorized in July making them a legal tender in pay ment ot debts, and exchaugable at any lime for ti per cent twenty years bonds; with a further issue of de exchange them for the six per cent twenty years' bonds. These circulating notes in the hands of the people would enable them to pay the taxes imposed, and would faciliate all business operations be tween farmers, merchants, commercial business men, and bankers, and be equally as good as, and in most cases letter, than the present irredeemable circulation issued by the bankers. 3. The $500,000,000 six per cent twenty years bouds in the hands of the Secretary of tlie Treasury, ready to be issued; would afford ample opportunity for funding the treasury notes as fast as capitalists might de sire to exchange treasury notes not not bearing interest for the cupon oinls of the United States bearing six per cent iuterest, aud amply se cured by a tax upon the people aud all their property. Iu this way the government will be able to get along with its immed iate and pressing necesities without eing obliged to force its bonds ou the market at a runious rate of dis count; the people, uuder heavy tax ition, will be shielded against high rates of interest; and the capitalists will be afforded a fair compensation for the use of their money during the lending struggle of the country for existence. those who may exact unreasonable ! to general reasoning. Article 1 , sec- ' terms. The government needs and i should have, in her present peril, the aid and protection of all patri.tic ! citizens. But, sir, knowing the power of j money, and the disposition there is : among men to use it for the ac j quisition of greater gain, I am un i willing that the government, with all its immense power and resources, should be left in the hands of any class of men, bankers or money-lenders, however respectable and pa triotic , they may be. The govern- tion 8, of the Constitution, expres sively confers on Congress the power -to make all laws that may be neces sary and proper to carry into execu tion the foregoing powers.' Congress may employ such means and pass such laws as it may deem necessary to carry into execution the great powers granted by the Constitution; and necessary means, in the sense of the Constitution, does not import an absolute physical necessity, so strong that one thing cannot exist without the other. It stands for any means WELCOME MR. CLAGETT. The Gray Eagle of the North Follows His Convictions and Leaves The Republican Party A Letter Giv ing Ample Reasons For the Chancre Too Anti quated. Win. H. Clagett, son of Judge Chigett who edited the Keokuk Con stitution many years ago, has been a prominent Republican of Idaho, and in a letter to Senator Stewart, of Nevada, states his position on the greatest question in a masterly manner. been treacherously obtained and the power of monopolies preserved and strengthened. These great monopolies have, by law, control of the money, trauspor taf.on and, largely, the land of the people. 1 hrough ( their control of the circulating medium they con tracted the currency until they have practically destroyed the value of all fixed property and the products of labor, and left the producing classes at the mercy of those who are en gaged in that kiu 1 of business which concern the distribution of wealth. The producers of wealth (with the single exception of the manufac turers) have been driven to the wall, and the countrv is bankrupt through a private indebtedness aggregating $20,000,000, a sum equal to. if it does not exceed, the combined nat ional debt of all Europe. xneie are many questions mat de mand solution. The controlling ques tion for the present, however, is the iinancial one. llelief can only come by the speedy increase of the circu lating medium, to such an amount us will restore the price of property and the products of labor to a bassis of adequate profit. This increased circulation should be supplied directly by the government through the free coinage of both gold and silver and paper issue based upon coin and re deemable in coin, and not through private banking corporations, where every dollar authorized by law cornea into extstance with an interest charge fas tend to it at the moment of its creation. Nor should this coin reserve be procured through the sale of interest bcariug bonds. A change in the law so as to require the custom duties to be paid in coin would supply the uec- . essary coin reserve. Keep mis com in the Treasury, and for every dollar issue three or four dollars of legal coin certificates, until the circulation becomes sufficiently abundent to re store prices to a nominal and profi table bassis, by this means the circula tion can be increased readily $800,- 000,000 in a single year, every dollar as good as gold, and without cost to the people. To prevent any run upon the Treasury iu the interest of ex porters of gold authorize the Secre tary of the Treasury to refuse tempo rarily to redeem certificates when the coin is desired for export, or in case of a temporary premium on gold to change the amount (if this premium for the coiu and thus check its ex port. An adequate supply of money thus being provided, utilize the postolhYt s as banks of deposit and exchange where depositors can safely keep their money and handle it for their own benefit, instead of turning it into the banks to be used for the benefit of ment is much stronger than any of I calculated to reach the end. The maud notes if Congress shall here after deem it necessary. 3. Provide for the issue of all the twenty years' C per cent bonds that may be necessary to fund the demand Treasury notes, and other fundable Treasury notes that may be issued (say $500,000,000 six per cent twenty years' cupon bond) and pledge $30, 000,000 of the annual taxes to pay the interest half-yearly thereon, and pledge $25,000,000 more as a sinking fund to redeem the principal in twenty years. The tax of $150,000,000 would afford an amble bassis upon which to rest the credit of the government for this large issue of treasury notes anil bonds, and would insure the punctual payment of the interest to the capi talists who might hold them. 2 The demand notes put in circu Iation would meet the present ex igencies of the government in the the discharge of its existing liberali ties to the army, navy and contractors and for supplies, ainunitions of war. These notes would find their way into all the channels of commerce amcng the people; and as they accumulate in the hands of capitolists, they would Osburn, Idaho, Nov. 25, 1893. Hon. Wm. M. Stewart, United Slates Senate, Washington. D. C. Friend Stewart: Owing to my absence for the last ten days, your favor of the fifth instant is just received. Your appeal to me as an old friend to espouse the cause of the people in Idaho was unnecessary, as I bad left tue llepublican party before your letter was written. It was not easy for me to do. 1 1 was most painful to dislocate old and cherished politi cal friendships and abandon the par ty, which others may have served with more success, but which no one has served with more unselfish devotion I have not taken this step without due consideration. The causes which have led to it are numerous, and some of them are stated in your letter. These causes combined, deprive me of all hope, even that the Republican party as at present organized will or can meet the just expectations of the people. Yet it is largely to the mag nificent rank and file of that party the country must look for redemption. This redemption, however, cannot come through either the Repjblicau or Democratic parties. The reason for this is apparent on the surface. They were not organized to deal with the vital questions of the present. The great monopolies which both par ties have cherished in the past have grown two powerful to have their in fluences impaired by either of those parties. Whichever one of them should openly espouie the cause ot the people would be hurled out of power by the monopolists transferring their influence t the other. The pat ty managers know this. The result of this knowledge is seen in the plat forms of both parties iu the great stress laid upon matters about which there is no dispute; in their total silence upon questions of the utmost concern to the people; in the purpose- I . nmliliniAiia I'lnrrnicrn in vliioli Ihnr ! Tt ii crnrwl tllifMP for the Re nil hi!. I u. ... . . i v u i i a . " m v - - - - n , - - w w r 1 palter in a double sense with great ! cans to remember that out of 113 a m . . m - - - 1 to mm mm mmm mmm mm m mum ini - tiiu mmm m mmmm m m mm m m m mm m mm m m ibiubk. m mm m mm mm m m and in the faithless breach of oartr ! sreaa, 100 of them voted to demons- promises after the spoils of office have ! tue silver. Lamar Union. such hanks. A great number of the depositors would soon become money lenders, aud the rales of inUrcst would fall, as there cwuld be no com bination to raise the rates ot interest, as the bauks now do. In times of pauic (for panics are iu separable f r in busiuess), as soon as property began to seriously decline, the d ;' sitors would seek for bargains; the.r money would be withdrawn from the govern ment vaults for investment, and the panic stopped through relief of tho money market. i fin nslc tne r r mv vu-.v I I:nvn given some of them brietly. The PoDulist is the only organized oartv mv who- e entire membership is d voted to the interests of the mas cs of the I .. i. i i . i ... i t-A Meuu.e. ii una iiiuue ui.n w 11 i.i;im,u m'iMkTii mil w cruiiw. tit i ;iimi : . . . l i . l .. i -. iv is iiie oiiiv )r";.niz-ii !:. vkinvu nlaeea iirineiiiul ubuve ttitrtv feUCCCMl and 'subordinates the mere place- seekers to the needs ot the country As long as it continues io do this I shall support it. Truly your lriend, Wm. H. Ci.aoett.