The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-05-06
THE sUB-TREASURY PLAN.

MIR. view OF the 1nL0I-
est aroused by the demand of the
Alliance for the government
to increase the circulating medium
and the adoption of what is called the
Sub Treasury Plan"
It will possibly surprise some to be
told that under the proprietary gov
eminent of North Carolina 1883 to
1929 a plan similar in principle was
in successful operation for years; and
SO successful that it was adopted in
Pennsylvania and other of the
provinces, and it was accommodated
by Gov. Rownal, who had presided
over Massachusetts and New Jersey
to the mother county for establishment
in all the colonies.
The want of a circulating medium
in the operations of trade was very
sensibly felt at a very early period,
and about 1713 the assembly of North
Carolina issued what was called "bills
of credit" This act simply provided
that these bills "should pass current"
for so many pounds or shillings.
There was no provision made for their
payment, but 1000 pounds per annum
was to be issued "till the public debt
was satisfied" In l7l5 a new law
was passed ordering "a, 600 pounds to
be issued, and these were to be q
legal tender for debts payable in any
of the rated commodities of the coun-
try or for money. If offered in salts
faction of the latter they were to be
estimated at one-half the value of
sterling.
In 1922 another law was passed
making a provision for the redemp,
ton of those bills by the levy of a poll
tax of FIVE shillings. This tax the
sheriff was to collect by a certain day
and if necessary to raise it by a dis.
tress. The sheriffs were allowed IN
settling their accounts with the treas
urer to make their payments in these
bills, or in rated commodities of the
government, deliverable at certain
landing places on the navigable
streams in their respective precincts
But it was the law Of 1927 that has
been pronounced a "wise and gooC
one and quite adequate to furnish the
people with a safe and circulating
medium that would in general var
but little from it's par value"
The basis of this act was the security
|; by mortgage of improved unincum
bered real estate for the repayment tx
the government of a loan upon it. Il
fact the law established a loan Office
{ the government being the lender anC
! the owner of the land the borrower
Among other provisions of the act no
} pertinent to this enquiry, it was pro
| vided that the respective precinc
treasurer should issue the bills to sucl
persons as might desire them and il
such sums as they might wish to al
amount equal to one half the value o
the land. The loan was to be for fl
teen years, the interest 81 per cent,
payable annually, and one-ffteenth 0
&. the principal.
In case of failure to pay this inter
est for three years the treasurer wa
| authorized to make immediate dis
tress and sell first the personal effect
of the defaulter, and if these wer
. not sufficient to satisfy what wa
: due, then the land.
Two Indifferent free-holders selecte
t by the treasurer were to appraise tn
f land under oath. These bills were il
t sued in various amounts from on
shilling up to ten pounds, and it wa
9 provided that they should be estimate
. at a fixed value-twenty shillings {
the bills were to be held with fftee
e pennyweights of silver as current i
Virginia-they were to be a leg'
e tender, and the rated commodities
pitch, tar, pork, tallow, silver, golc
Indian corn, ~turpentine, train OF
wheat, tobacco, rice and hides-we1
s named in the act with their respecti1
values in the new currency.
j. The borrower might at any tin
1t before it was due, pay his debt, but
n he did he was required to pay al:
three per cent. on the sum borrowe
for the unexpired period of the fftee
10 years. The plan worked so we
where tried in Pennsylvania, Nor
a and South Carolina that it was recor
lr mended to the mother country herse
he to open a loan Office on this plan f
all the colonies.
II Cannot our Representatives in Co
is gress get a suggestion from tt
re scheme, devised by our ancestors II
y years ago to meet a similar demal
from an agricultural community f
y. an.increase of the circulating medium
C. What contrast between the statesm
re of those early times, who gave to re
OF estate its true position in the wor
n as a basis of credit and the statesm
of these later days who by denyi.
IT. to the only fiscal agencies we ha,
Ill that is the Z. s. banks, the right
NJ lend money as rool estate coo,7rit