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

l do insist that 1t is the duty OF the
government to perfect the machinery
SO that it may at least approximately
approach the desired result. To attack
the fexibility of the proposed cur
rency, is to attack the proposition that
the issuance of paper currency should
be regulated by the laws of supply
and demand This is to fly in the
face of the best writer's on the subject
and the first principles of common
sense. The strongest argument that
has been made against paper money
is, as stated oy Jevons, 1.-The impos
sibility of varying it's amount in &C
cordance with the requirements Of
trade" Specie, it has been argued,
could be called from one portion of
the world to another in accordance
with the demand of trade, but paper
circulating only in n county would
not have any reserve supply in other
portions of the world to draw upon in
periods Of activity or foreign outlet
for investment in periods of depres-
sion. The ~fexibility of the proposed
currency is the strongest argument
that can be advanced in it's favor The
danger arises, not from its l~exiblity,
but because it may not be f:xiole
enough to meet the demands of trade
in the spring when the great staple
crops have been largely consumed.
But when it is remembered that there
is an enormous demand upon the en-
tire currency of the country during
the fall months when the crops are
being marketed; that a greater volume
of business is necessar ily conducted at
that time than at any other in the
year, and that the money of the coun
try is enormously supplemented under
present business methods by drafts,
bills of exchange and every form of
COM ercial credit, it will be seen at
once that the increase of currency
during this period of activity would
Jake the place of the existing forms of
credit, which now supplement the
volume of money, and that, if the in.
crease OF currency could be made to
bear an approximate relation to the
increased volume of trade, every in
terest in the whole country would be
benefited. Perhaps the most Import
ant advantage to the country would
arise from the greater cheapness with
which the crops-great articles of
northumberland distributed for !
consumption. This advantage would {
principally manifest itself in ~lessening 3
the rate of interest and in enhancing q
the price of the crop, but it would be c
a great error to suppose that all bust. /
ness interests would not also reap a |
corresponding benefit. J
DEPRESSING THE MARKETS. /
The financial report in the Atlanta y
CONSTITUTION for Wednesday, July 23d, y
which was certainly not intended as =
an argument in f.vor of the farmers =
Sub Treasury plan, says in discussing q
financial sltuatiOn in New York T
I" Tue bears have been looking forward :;
the time when crops will make such -
demands upon the financial resources =
OF the country that there will be =
nothing left in New York banks with 7
which to carry on bull speculation" y
In other words, the be ars were then "
pre- ?arlng to seize upon the tightness II
Of the money market incident to mar u
ketlng the crops, to depress their prices =,
ana the prices Of all o.her securities .
how well they have succeeded has 4
Oe9n demonstrated by the decline in I
prices OF nearly all securities and the y
advance of interest to the rate of 1873 Il
per cent. per mum. G,
Inc contraction under the proposed =,
plan during the spring months from q
he gradual consumption of the staple u
;rops WouId be much less stringent >!
nan the contraction incident to the 81 .
all months under existing conditions. "
t would about equal the lesseninp de. Ge
hands. At the worst, it would rams. D
er the period of contraction compared &C
With the volume o. trade from the fall to &c
spring Every business nan would ID
now hat strlngen ~ of money during %
TALL would be impossible; and he p
you'd also know, even if there was oe
ONE contraction during the spring, ol
ompared with the volume of CURRENCY 81
nat came into use in the fall, that it !!
'ouId take place at a time when the vi
emands of business are less than thew Tic
re in the fall. TO
di
BEST METHOD OF ~PERFECTING BILL. GU
The proposition having been estab Tn
shed that a safe, sound, and stable 90
lrrency that will pass on a parity su
18th gold, can be issued on the great al
APPLE crops, and that 1exibility or elias III
city in the volume of the currency Gu
the country will tend to promote I'M
le stability of prices and keep down IN
le rates OF interest, we pass next to to
le consideration of the best method tie
accomplishing this much desired an
suit. 1t would not be difficult to de, wi
Sc a system based on the linz sug.