Port Tobacco times, and Charles County advertiser., 1890-06-20

cause when the withdrawal is made all the
treasury notes originally loaned mt st be
returned and cancelled. The very moment
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 initiation of the currency,
and prices are high. but the very moment
the farmers withdraw their pro lucts for
sale, there is an enormous and dangerous
contraction of the currency and prices
are low.
According to the latest official report
upon the subject the total amount of eur
rency in the country is $4,000, 0,75S, OF, hut
the SUM of 1922, ,764 27S is held in the
Treasury of the United States, leaving
about 81 800, 1000, 900 in active circulation
among the people. 1t was said by one of
the leading advocates of the scheme, who
appeared before the Senate committee, tn It
in order to carry it out it would be neces-
sary to double the present volume of cur
rency IN circulation once every year. and
as the products can remain in the ware
house only twelve months, of course about
one thousand and five huhdred millions of
dollars would have to be retired and can
celled every year, two changes in the volume
OF currency, either of which would be alb
solutely ruinous to all the commercial and
industrial interests of the people. No busi-
ness OF any kind could be transacted in
any country in the world under such
financial system as this, and the farmers
and iaboring people would be the irst to
feel its fatal effect. The fluctuations in the
wages of labor and prices of oddities
would be so sudden and go great that no
man could afford to enter into contract
OF any kind. All credit would be utterly
destroyed: the lahorer would find. that fhe
wages which he had agreed tSlcceive, " hen
the currency was contracted, wShIh be in
sufficient 10 buy bread Tor his children
when the currency was inflsted and the
farmer would find, when he undertook to
purchase his supplies with the treasury
notes received on his products, that, ou,ac-
count of the temporary inf1atlon, it woald
require twice as many dollars to procure
the same articles as were required before
the deposits were made.
The entire business ofthe country would
be thrown into the most profound confu-
sion twice year. Some would find them
selves suddenly baDkrupted by the contrac-
tion OF the currency and decline in price s.,
while others would End themselves s6f
denly enriched, or spprently enriched, by
the imitation of the currency and a rise in
prices but all would share substantially
u common fate in the end, for the growth
and prosperity Of the couutry as q whsle
would bs DESTROYED as long as such a sys-
TEN existed. But, during the time when
these great iood products are loci ed up ip
the warehouses. or in the sub treasures, "a
they are miscslled, what is to become Of
the millions of people who reside 10 the
cities, towns and villages. and the other
millions who reside in the country but
own no wheat. corn or os'si They are To
be starved into submission to the de p,s
OF speculators they are to he deprived Of
bread until such time as they become Will
ing to pay whatever prices the purchssers
and holders of warehouse receipts nav see
proper to extort from 'hrm No such fsAl-
ities as this scheme will afford for contrib
ling the msrke's tor purely speculative
purposes have ever existed in this or any
other country, and no more perfect system
for ths oppression Of the poor could oe ds-
vised. The exact quantities Of produces
on deposit in the severs' public wsreho ouses
will he known in every commercial and
financial center, and combinations tn
purchase and hold the receipts could lie
easily made, especially when they can be
procured by the payment Of small per
centum of the value of the deposit.
But il may be contended that the farmez
can sell their products while they ars
deposit and receive the benefit Of u
priaAA -h'c1- viii -rruyor-rt-y- o.
account oi the infl.tiou OF the curreGv
the volume al currency were to be ref-
manenily increased 40 ~ to make prices
permanently high there would be some
force in this suggestion, though even in
that case the prices of everything the farm
ers are compelled to buy and use would be
increased in the same proportion and they
would gain nothing substantial in the end.
Bu, the volume of curreaey in circula,ion
is not to be permanently increased under
this plan, fnr, ss already stated. each i, IA
tion must be almost Immediately tollowe cd
by corresponding contrsction. In view OF
this inevitable contraction aud con ses uent
fall OF prices, of course, while the currency
is inflated aud prices are high no actual
consumer will purchase the s'ored pro-
ducts except in such small quaati,ies ss he
is compelled TO use from tine to time. The
regular and legitimate market which the
farmer has heretofore enjoyed will be In q
great m m1asure destroyed, aud the trade " i'll
necessarily fall principally into the hands
Of combinations and syndica,es Of specu-
lators who are able by reason Of their large
capital to mopopoize the stored prod uc,s
and keep the prices up for their own ex
elusive benefit after they have purchased
from the farmers. The farmers ca mot com.
bine and keep the prices up because in the
first place they are too widely scattered To
act in concert and 10 the second place they
are not in pecuniary condition to CARR
their products beyond the end Of the year
when they must he redeemed from the
warehouse or sold at auction by the Gov
ernment. II they were in q condition to
do this, they would not need public ware
houses, or advances Of money from the
Government.
l, is claimed by some, however, that
whatever may be the case in regard to
other prodacts, the entire cotton crop could
certainly be sold during the year to our
own manufacturers and for expectation 10
other countries. and upon this assumption
strong and partially successful appeal
has Leen made to the planters OF the South
to give their supper, to The SO called sub
treasury plan. 10 my opinion our domes-
tic manufacturers of cotton goods would
be able to purchase very little, ii any, raw
cotton at any time if the proposed plan
were adopted. No one could successfully
carry on the busntss OF manufacturing
cotton goods or any other character Of
goods under financial system which in
flated the currency and increased prices
when he wanted to purchase his material
and contract the currency and reduce