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

m0HtS WaQ0 on Inc race OF the ware
house receipt. The improper issuanc,
of any receipt by the officers of thi
bonded warehouse could be made
criminal ofense. In fact, without any
radical change in the conduct of th'
business, with a far less number o
federal officials than are now employed
in the collection of the Ubiquitous tariff
taxes, it woul1 be easy to secure the
issuance of a warehouse receipt thal
would be a certain guarantee that the
product it purported to represent was
actually within the walls of a perfectly
responsible warehouse. Without any
of the safeguards and restrictions
which the government could throw
around the issuance of these warehouse
receipts, they now pass as good col
lateral in the banks of the country.
After this warehouse receipt had been
issued it could be deposited with a
sub-treasury, to be established in each
of the States of the Union, and 80
per cent. of the value of the product
it represented could be issued in treas
ury notes. With the present banking
facilities of the country and a law
properly drawn, a single sub treasury
in each State could be made amply
sufficient for all purposes.
SIMPLE AND CONSTITUTIONAL.
There would be no difficulty in get
ting money upon the warehouse re-
celpt at the nearest bank simply for
the cost of exchange. That a simple,
safe and expeditions method of getting
these treasury notes into circulation
can be perfected, there is no doubt,
nor is there any constitutional reason
why the government should not have
the right to issue its trea Jury notes
based upon this warehouse receipt. At
the proper time and in the proper
form [ would undertake to demonstrate
there is less constitutional obiec-
ton to the issuance of these treasury
notes than there is to the banks issu-
ng notes based on the deposit of gov
9rnment bonds, or to the purchase by
he government Of silver bullion. To
any additional expense that the
government might be put to, a simple
could be levied upon the issue of
note, a tax small enough not to
% b~urdensome to the people, and at
he same time large enough to prevent
'nyone from dra wing N oney f ON the
government unless be had Immediate
-se for it. 1t is safe to predict that
o more money would be drawn than
'as necessary to cheaply and econom.
'ally distribute the staple crops for
onsu mption. | do not believe that
any period of time during the year,
ven the busiest in the fall, $50, 600.
% of additional notes would be
rought into use. This estimate is
oeral. 1t must be remembered that
900, 900 bales of cotton at S45 per
ale only equals 1915, 600, 900, and {
so per cent. of this value onlv t
III lis 1882. coo, 600. Now, the entire I
could never at any time be pied yed t
} the government. Consumption is
ways going on and has made CON, I
derable progress by the first DAYS of =
'ecem ber, by which time not exceed :
e one half of the crop has come into I
ght. Every bale of cotton and every c
lshel of wheat would no more be- i
edged to the government than every G
Sc OF cotton and every bushel of S
heat is now pledged to the banks
lrlng the marketing season; but if a
ERE was danger of too great an in. il
ease, the government could limit b
10 amount OF its treasury notes to be 8
lVanced upon the pledge o. the crop. a
Wo hundred millions o. dollars wouid Il
more than ample to secure a very b
W rate OF interest and an easy fnan. a
situation during the fall months, G.
ut cannot a safer, more e~ffcacious 7
"a more direct method be devised tt
at will effectively and practically D
compllsh the ends in view without 3
'ner the government building or tt
nd1ng warehouses, by simply an ex e,
nslon OF agencies now in existence ? al
before submitting this plan, let us m
nsloer Tor a moment what would be e,
.omplished by the government issu.
3 money direct upon the warehouse
rtlhcates. 1t would not prevent the
Ice OF the great staple crops from 70
ing regulated by the universal law W
supply and demand. 1t would %
nply, by reducing the cost of carry. o.
these products until they were Ca
trlou ed piece meal for consump I
n, enhance their value to the extent ST.
which their cost of carriage was ez
ninished; or perhaps to be more &C. w
rate, by a universal law Of trade 10
decrease in cost would be shared ne
n oy the producer and the con. pa
ner, neither monopolizing the full tle
vantage of it. 1t would also. bv M
nlshlng an abundant and flexible 40
'rency, render stable the rates of co
crest, prevent artificial stringency N
the money market and manipuIs. an
rs to depress the price of commod OF