The times. [volume] (Richmond, Va.) 1890-1903, 1890-08-27

prices fall, because when the witbdrawalls
made all the treasury notes originally loan-
ed must be returned and cancelled. Inc
very moment the deposits are made, ana as
long az they remain in the warehouse, ana
beyond the control Of the farmer. there Is
an enormous and dangerous imitation OF the
currency. and prices are high, but the very
moment the farmers withdraw their pro-
ducts for sale there Is an enormous ana
dangerous contraction Of the currency ana
prices are low.
EFFECT on THE CURRENCY.
According to the latest official report
upon the subject the total amount Of eur
rency in the country j. S2,WOl5s,Wl, but the
sum Of SG22. 76i. RS is held in the Treasury
of the United states. leaving about Sl,JOo,-
100000 in active circulation among the peo-
pie. II was said by one Of the leading adj
yocates Of this scheme, who appeared before
the Senate committee, that in order 10 carry
il out il would be necessary TO double the
present volume Of currency in circulation
once every year, and as the products can re-
main in the warehouses only twelve
months. Of course about Sl,OO. VOO,Wo
would have 90 be retired and cam
cclled every year. two changes m
the volume OF currency, either Of
which would be absolutely ruinous 10
all the commercial and industrial interests
of the people. No business Of any kind
could be- transacted in any country in the
world under such financial system as
this. and the farmers and labOring people
would be the first 10 feel its effects. The
fluctuations i'm wages Of labor and prices OF
commodities would be so sudden and so
great that no man could afford 10 enter into
a contract Of any kind. All credit would
be utterly destroyed. The laborcr would
find that the wages which he had agreed to
receive when the currency was contracted
would De insufficient 10 buy bread for his
children when the currency was inflated
and the farmer would find. when he under
took 20 purchase his supplies with the
treasury notes received on his products,
that on account Of the temporary initiation
it would require twice as many dollars 10
procure the same articles as were required
before the deposits were made.
THE LOGICAL RESULT.
The entire business Of the country would
be thrown into the most profound cOniu'
sion twice a year. Some would lind them
selves suddenly bankrupted by the con-
traction Of the currency and decline in
prices. while others would find themselves
suddenly enriched or apparently enriched
| by the imitation Of the currency and fise
in prices, but all would share substantially
| a common fate in the end. for the growth
and prosperity Of the country as whole
would be DESTROYED as long as such n sys
TEN existed. But, during the time when
these great food products are locked up IN
| the warehouses or i'm the sub-trcasurlcS. az
| they are miscalled, what is 10 become O
| the millions Of people who reside IN the
cities, towns, and villages, and the Other
millions who reside in the country. but
own no wheat, corn or oats: They are
| 10 be- starved into submission 10 the de-
mands Of spectators; they are 10 bee de
priyed Of bread until such time rs they
| become willing 10 pay whatever prices the
purchasers and holders Of warehouse re-
ceipts see proper to eXtOrt from them. NJ
such facilities as this scheme will AFFORD
for controlling the markets for purely spec
ulatiye purposes have ever existed in Thu
or any other country, and no more perlec
system for the oppression OF the poor could
be devised. The exact quantities Of pro
ducts on deposit in the several public ware
| houses will be known in every commercial
| and financial centre. and combinations L
purchase and hold the receipts could b.
| easily made. especially when they can BIZ
procured by the payment OF a small pei
centum Of the value Of the deposits
But il may be cOntended that the farmer
can sell their products while they are on
deposit and receive the benefit Of the higl
prices which will temporarily prevail ol
account Of the imitation Of the currency. !
the volume Of currency were 10 be per
manentiy increased 80 as 10 make price
permanently high. there would be SOM
force In This suggestion, though, even il
that case. the prices Of everything the farm
ors are compelled 90 buy and use would b'
increased i'm the same proportion. and they
| would cain nothing substantial in tie end
But the volume Of currency m circulation d
n0r-iO be permanently increased under thi
plan. for, rs already stated, each imitation
must be- almost Immediately followed by
| corresponding contraction. In view Of thi'
inevitable contraction and consequent ial
lrf prices. Of course. while the currency II
inflated and the prices are high, no actua
consumer will purchase tie stored products
except I'm such small quantities rs he l.
! compelled 30 Use from time 10 time. Tn,
regular and legitimate market. which the
farmer has heretofore enjoyed. will be IN q
great measure destroyed. and the trade vii
necessarily fall principally into the hand
of combinations and syndicates of specu
iatOrs who are able by reason Of thell
large capital, 10 mOnOp0liIe the STORED
products and keep the prices up for theil
own exclusive benefit after they have pur
chased from tine farmers. The farmers can
not combine 10 keep the prices mp. because
in the first place ehey are too widely scat
| tered a. act i'm concert. and, i'm the sccOnC
place they are not i'm "a pecuniary c0ndi
zion 10 carry their products beyond the enc
/ Of tine year. when they must be redeemed
4 from the warehouses or sold no auction IN
the government. lfthey were i'm condition
to do this they would not need public ware
houses or advances Of money from the gov
| eminent.
EFFECT ON TIE COTTON CROP.
II is claimed By some, however, tina
whatever may be the case ia regard 10 othe
products. the entire cotton crop could Ger
tainly be sold during the year 10 our owl
manufacturers and for expectation 10 Other
countries. and upon this assumption 4,
strong and partially successful appeal ha,
been made 10 the planters OF the South q
give their support 10 the sO-called sub
treasury plan. In my opinion our do
nestle manufacturers Of cotton goods would
be able 20 purchase very little, if any, raw
cotton ut any time if the proposed plan wer,
adopted. NO one could successfully
carry on the business OF manufacturer.
cotton goods, or any other character o.
goods, under the financial system which
inflated the currency ana increased prices
when he wanted to purchase his materials
and contracted the currency and reduced
prices when he wanted % sell his products
! such system would soon close every cot
ton factory in the United States, because
| the owners would find il impossible 10 sci