Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1890-10-24

N SPRINGS, JERAULDCOUNT,
tunity afforded to the spectators,
whose agents will swarm all over the
country, ready to take warehouse re-
ceipts from the embarrassed farmers
for a mere nominal sum-. The receipt
Is simply privilege Of redemption
like the pawn brokers' ticket, and the
farmer being himself unable to redeem
will be forced ultimately to dispose of
1t at any price offered.
l do not think any considerable num-
Der of people in this country will unite
in asking the government to establish
a system which Will compel them in a
large number of cases to sacrifice the
products Of their labor. But suppose
the farmers are able to redeem the
products in order to offer them for sale
on the market, what would be the ne
cessary effect of the proceeding?
When they deposit their products in
the warehouses the volume Of the cur
rency is Immediately expanded and
price rise, because the government has
issued new treasury notes to the
amount OF 80 per cent. upon the pro-
ducts for sale in the markets; but
when they withdraw the products for
sale in the market the volume Of the
currency is Immediately contracted,
and prices fall, because when the
withdrawal is made all of the treasury
notes originally loaned must be re-
turned and cancelled. The very mo-
ment the deposits are made and as long
as they remain in the warehouses, and
beyond the control of the farmer there
is an enormous and dangerous imitation
Of the currency, and pricessare high,
but the very moment tho farmers
withdraw their products foEsale, there
is an enormous and DANGEROUS con-
traction of the currency and prices are
low. According to the latest official
report on the subject the total amount
of currency in the country s1s $780,
75S,O71, but the sum Of $822,784,27S is
held in the treasury of the United
States leaving about $500 400, 900, in
circulation.
1t was said by one of the leading adj
vocates of the scheme, who was before
the senate committee, that III order to
carry it out it would be NECESSARY to
double the present volume oEcurrency
in circulation once every year and as
the products cannot remai Ia the
warehouses only twelve Masls al
course about 81, 500. COZ, 600 6id have
to be retired and cancelled eXSry year,
1.-TWO changes in the volume 9tcurrency
either of which would be absolutely
ruinous to the commercial and indus
trial interests of the people,. No bust
ness of any kind could be transacted in
any country in the world under such a
financial system as this and the farm
ers and laboring people would be the
first to feel its fatal effect. The fluctu-
alton in the wages and prices of COM
modities would be SO sudden and so
great that no man could afford to enter
into contract of any kind. All credit
would be utterly destroyed athe laborer
would find that the wagedSWhich he
had agreed to receive when curren-
cy was contracted would be 94ficient
to buy bread for his childreN when the
currency was inflated; and he farmer
would lind when he undertook to pur-
chase his supplies with the treasury
notes received on his products, that,
on account of the temporary imitation
i. would require twice as many then
to procure the same articles as were
required before the deposits were
made. The entire business of the
country would be thrown into the
most profound confusion twice q year.
Some would find themselves suddenly
bankrupt by the contraction of the
currency and the decline in prices,
while Others would find themselves
suddenly enriched or apparently en-
r;ched by the imitation Of the currency
and the rise IN price; he too would
share substantially the sa,pe fate in
the end, for the growth andIprosperlty
Of the country would as a whole be
destroyed as long as such a system ex-
listed. But. during the time when the
! farmers have products locked up in
the warehouses. or sub-trehsuries, as
they are miscalled, what is TO become
of the millions of people who reside in
cities, towns and villages, and the
, other millions who reside in the coun-
, try but own no wheat, corn or oats
They are to be starved into submission
to the demands ofthe spectators: they
are to be deprived Of bread until they
become willing to pay whatever price
: the purchasers ard holders of ware
+ house receipts may see proper to ex