The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-09-30

ClSCO, DOSGOAS O1AC1AA6G1 6uu NOW "
leans, and to establish them in eac.
State would require but little time
very little increase of governments
patronage, and the mere extension O
a system that has been perfecteC
through years Of use. National bank
now exist all over the country, anC
any number can be chartered unde.
The general law. If these two agencies
were brought into close and harmoni
Gus relations, and the national bank
of each State were given a credit with
the Sub Treasury to be established in
each State to an amount equal to the
whole OF some portion of their fully
paid in capital stock, and the use Of
the increased currency they obtained
through the Sub-treasury was con.
fned, under proper restrictions, to sd.
vances upon the great staple crops, an
abundant currency, as stable as any
in existence, could be brought into use
and the rate of interest on money ma.
terially lowered throughout the Union.
Any stringency in money from NOV
ing crops would be eliminated from
the conditions surrounding commerce,
and a healthful method of expansion
and contraction in accordance with
the volume Of trade inaugurated. The
government would take no part in the
business Of the country; it would have
no voice in banking or the fixing of
credits; the whole machinery of gov
eminent banking and commerce
would move on just as it does now,
and the only change would be that the
national banks, instead of having to
draft on the great money centers of
the country, would find ample funds
for moving and handling the great
crops in the Sub Treasures
established practically at their doors.
consumption took place the in
crease of currency would flow back
into the Treasury, only to go out
again as demanded by the exigencies
Of trade forced upon the country by
It's enormous annual productions.
Each State would have one or more
financial centers, and would be rem.
Tered independent of the great 6nan>
;ial centers
PRACTICAL WORKING OF BILL.
To better understand the plan, let
Is consider for a moment it's practical
working. Suppose a Sub Treasury
vas established in Atlanta and in Sa
-annah, and with one or the other of
hese Sub Treasures the national
'anks of the State had a credit equal
o their capital stock, and that they
ould use the currency derived from
his source only for the purpose of
dvances upon the great staple crops.
instead of sending to New York for
urrency, as they are now compelled
D do with which to pay for cotton,
hey would be able, on the very class
t security which they now accept,
} obtain the currency directly from
he SUB Treasury, instead of from
leir Eastern correspondents. There
'ould be no drain for this currency
pom the financial centers. Cotton
'ould move just IS it moves now, and
hen 1t finally reached the great
Larkets and was paid for an amount (
1rrency equivalent to that advanced
Atlanta would flow back into some
le or other of the Sub Treasures.
} conservative are the national
anks of the country that it is prob s.,
Die they could be safely allowed an l
crease of currency, to be used in )
'ndllng merchandise gene ally, but :
delicate Is the financial machinery =
so easily is it thrown out of gear, !
at any increase of currency should {
based only upon such great staple T
tlcles of merchandise as must be IL
nsumed within a limited period. =
} render the rate of interest uniform !
roughout the country, and thus to i"
operly regulate the value of money, d
'ngress, as by the Constitution of =
9 United States it is authorized and .
powered to do, could, in consider. .
on OF the additional concessions =
to the banks, provide a low and ?
ed rate of interest. 81
HISTORY OF SUB TREASURY. -
The plan proposed will run contrary in
the views and prejudices of those lie
70 have for a quarter of a century al
'de war upon the national banks; D,
{, IN spite of every attack, these az
nks have continued to exist and to til
,nlsh this country with as safe and pl
Ole a system of banking as ever 10
sted anywhere at any period of the L
rid. There Ire features in regard fir
the national banks which I have III
approved, but 1 have never ar
'tlclpated in the senseless denuncia. tn
q so often hurled at them. The so
n who manage them are the most th
e and skillful f~nanciers in the m
Lntry; they are men who have SO
a thorough study of banking, sti
1 Who are better prepared than any fir,
people in the country to handle tn