Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1890-10-22
THE ARGUMENT ANSWERED.
A Violent Attack on the sub-T.e..ury Plan

by U. s. Hail. president r. & L o. of,
Missouri. Thereby hangs q tale"
The leaders of the Democracy, National
and State, have committed themselves
against the Sub-Treasury plan, and 1t
must be beaten in the State of Missouri,
or the Democracy is beaten. II you
will allow me space in the Economist /
will offer in reply to Mr.. Halls article
the following few thoughts which occur
to me from . cursory examination Of
his article:
MI. Halls 'least line of resistance"
is his statement that '-the United
States Government has no money ex-
cept what it raises by taxation from the
people" This Is the basic error upon
which all the systems of spoliation,
that are enriching the few and impover-
ishing TIE many, are based. Itcontra-
dicts the Constitution of the United
States when it declares that Congress
shall have the sole power to coin Gissuel
money and regulate the value thereof"
1t also renders nugatory and void the
demand No. 1 made at St Louis and
quoted with approval by Mr.. Hall him
self, to wit: That the money of our
country be ISSUED in sufficient volume,
to do the business OF the country upon
cash system; regulating the amount
needed on a per capita basis as the bust.
ness interests of the country expand"
Is Mr.. Hall so badly afn cted with mem
tai strabismus that he cannot compre-
hend the fact that his whole argument
is calculated to fall with crushing force
upon the very demand that he seems to
SO cordially indorse? Where does he ex-
poet to get the money that he so ear
nestly wishes to see ISSUED in sufficient
volume to do the business of the coun-
try on cash system? From the peo-
pie by taxation? Now will that increase
the volume? Mr. Hall must have writ
ten his article without due reflection
Not only does he display woeful ig.
norance Of the principles of finance, but
he also proves conclusively that he does
not understand the manner in which
the sub-treasury plan would work. In
Division No. of his article, he asks
with apparent sincerity:
But what becomes Of the 40 per cent Of tn
value OF this grain II the farmer does not
redeem f.? Only the farmer who needed
money badly would carry his grain to the
warehouse. and he would not be likely to
a
redeem his grain; then the G ,vernment
must put 1t up and sell 1t to the highest bid
der for cash but where shall 1t be sold7 Il
may be the country farmers In the neigh
borhood OF this rehouse have all the
gr lin 'bacco and cotton they need, and do
not care to specul' t. for remember these
warehouses mast b. situated a great dis
tance from the centers OF trade
What superlative density of igno-
rance or criminal degree OF misrepre.
sentation the above discloses. AS we'll
might he ask, '.what becomes of the
equity of farm that is mortgaged?'-
to which of course the answer is: "If
the farmer who gave the mortgage
finds himself unable to pay the mort
gage of he will sell the equity; that ID,
he will sell the farm at the market
price, subject to the mortgage.
which means that the amount
of the mortgage will be deducted
from the agreed purchase price of the
farm. Just 30 will the equity, or Mr.
Halls troublesome 90 per cent be dis
posed of. The farmer has a deed (ware.
house receipt) for a certain amount OF
grain, subject to mortgage (advances
and oharges) of certain sum. The
farmer leaves the grain in the ware
house until by the operation of the nat
ural laws of supply and demand the
price Of the grain advances to the Level
Of the price now obtained by the middle
men. Then, II he wishes to sell, be
simply sells his equity at the advanced
market price; that is to say, he sells q
many bushels OF grain at the marke'
price, less the advances made him bJ
the people and the stipulated charges
Easy, Is it not2 Then Mr.. Hall formu
lates this remarkable proposition:
What viii be the eff.ot on our AnAneiA
i systsm II this warehouse scheme" shouit
become q law7 The farmer would cofne q
she Government warehouse In August Will
| his 100 bushels OF wheat, worth, aay, 81 pei
bushel, and as he is anxious to buy o two.
horse wagon. worth In July $50, and aset o
harness worth e2b, he deposits his grain ant
she Government loans So on It, and he goei
forth to purchase his wagon and harness
Now, the effect Of all the farmers depositin(
thelr gra n about tho same season each yea
Will be to greatly in rease the volume O.
currency in circulation after they have %
posted their grain. which will increase tht
price of ev ry thing they have to buy afte
they have gotten the money to buy with. 4
Is estimated that 1t Will double the volum
Of money but recollect this doubling of tn,
amount of the mones 10 just after the farme
has nothing to sci aud just when he want
to buy. II 1t does double the volume o
money, then the farmer that wanted to bu,
the wagon ami harness goes to town e
make his purchase, he finds the wagon hl
intended to buy IS pricad at sloo and th'
harness at $50, for ''the price OF the ooin
modify 10 nxed by the volume of money Il
existence at the time" Therefore what b.
wants to buy Is doubled in price
Here again Mr. Hall gives eyidenc'
Of his strange forgetfulness- According
to his argument the entire enforcemen
OF the first plank af the St Louis de
mands would afford no benefit what
ever. Now, is 1t not passing strang,
that 1t did not occur to Mr.. Hall tha
until the wagon and harness in ques
tion are bought and paid for the in
creased volume of money Is Ia tn
hands II the farmer, and has not q
yet had any influence whatever upel
the merchandise for sale? Moreover
it can not be proven that the sub-treas
ury plan will put any mora ss1ioney il
~ al a.. = ~. sion, much less double the vol
ume. All grain forced upon the marke
and Offered for sale under the presen
system Is moved with cash or money
and that at 100 per cent of its value
instead of with 80 per cent, a. th
sub-treasury BlaA proyides TIL
only difference would be that the pee
pie would furnish so per cent at uni
form charge Of one per cent AS it 1
now the banks and money mongers ful
Rish the money at exorbitant rates @
interest and purposely make none
scarce in order to be able to extor
higher interest Thus the farmer |
crushed between the upper and nethe
, millstones of usurious greed and hi
compulsory need TO sell. The aut
sreaAIry plan destroys. the harvest tim
OF usury. which falls due at the sam
time the farmers harvest time OF graf
. does Mr.. Halls article is too thin
to require an extended reply. -GeorR
c Ward, in National Economist