The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-09-09
THE BILL.
The Two Questions Are: The Tariff
and Financial Reform.
our Correspondent Says That the Reform
of the Tariff is Greatest, and
Discusses F~aUora5ly the S~6->
H.a1c3,u9t s RU
TCor. of State Chronicle

GoLDsBoRo, N. O., Sept. /. $780,
There are two questions of vast mo-
ment before the American people.
These are the reform of the tariff and
a reform of the financial system. The
first of these is the most important;
but as it is old, and so associated with
partisan politics, l despair of saying
anything new or useful on the subject.
| will, therefore, address myself to
the second.
Gold and silver have for a long
while been the basis for the currency.
All other currency other than gold
and silver has been redeemable in gold
and silver. The supply of gold and
silver has always, in cases of emer-
gency, been inadequate to the demand,
and there has always been deprecia-
ton of the paper money, and tenn
porary or permanent suspension OF
specie payments.
In Venice, for $50 years, they had
a system by which an ~irredeemable
certificate of deposit circulated as
money; and these certificates, although
never to be paid, and to be used only
as a circulating medium were worth
more than coin.
Under this system, which was the
admiration of the world, there was
built up a commerce that has never
been excelled in Europe. The same
system was successful for a long time
in Holland.
The farmers believe that the same
result would follow the adoption of
the same system in this country. The
only departure of the Sub-TreasUry
plan from that OF Venice, is in Adopt
ing agricultural products for gold and
silver and government and other
securities. | have in a former article
attempted to show that agricultural
products are intrinsically worth more
than gold and silver and will not pur-
sue that idea now. Under the idea
of this bill, where products are de-
posted, there are certificates of deposit
to be used as money issued to the
holder of the warehouse receipt, to
the value of 80 per cent. of his pro
ducts; these have no connection with
products but go into general circula-
ton. When the products are sold,
which must be within twelve months,
this 80 per cent. OF the value is paid
back into the treasury, and the cir
culating medium of the country is
contracted this much. This system
works automatically and is controlled
by the cash demands of business, and
not by artificial rules as at present.
By this process the powers of agricul
tural products are multiplied, for the
farmer owns his product, and is using
80 per cent. of it, at the same time.
Then, a mill owner can, under this
system, buy 500, 900 worth of ware
house receipts, say, for $40, 600, and
withdraw his cotton as the demands
of his mill require it, and pay for one
part of his years supply out of the
proceeds of the other; or if he buys
500, 900 worth OF cotton outright he
can deposit $50, 900 worth of it and
get eighty cents in value in money to
manufacture and sell the SlO,O 900
worth not deposited, and with the
proceeds of the sale of that withdraw
so much from the warehouse as
his present needs may demand. Manu-
featuring may thus be done upon
much smaller amount of capital, cot
ton will thus be enhancedin price, and
the agricultural as well as other classes
benefited. This is true of all the
other products as well as of cotton.
Under this system no Unnecessary
moving of crops would be effected,
for as the receipts would present the
cotton or other produce, the receipts
would seek the markets and the pro
ducts would stay in the warehouse
until needed for manufacturing or
for use.
In all large cities there is a sys
tenn of clearing houses, in which all
the banks of good standing have
desks, and at which exchanges of
drafts are effected, and ultimate bal
ances alone are paid. By this system
it has been demonstrated that 1915
can be made to do the work of $500;
andin New York, twenty years ago,
Gu0y IOuuu IL pOSSlO1e ny GuUS multi
plying the powers of a,dollar, to do
$34, O0O,0 600, 900 worth of business
through the clearing house in n
year.
The farmers are, to some extent,
making an effort, thus to multiply the
powers of their products; and I, for
one, am in hearty sympathy with the
movement.
In history, we find people in ages
of great growth and effort, resorting
to other than gold and silver money.
In the Augustan age of the Roman
Empire, they used even land as a
legal tender. We have already recited
the usages of Venice and Holland.
In England We find that the founda-
ton of the banks of Fnpland and ito