Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-08-26
WHAT THE sUsrREAsURY PLAN Is.



Maryland. Virginia, North Carolina. Georgia,
Alabama and Texas it was decided that while
the alliance is mot welded to any particular
bill, it is unalterably determined upon the
principles" involved in the subtreasury" plan !"
Most people are ignorant of what this .'plan"
really is or the principles which it involves
Capt. Harry Skinner of Greenville, N. c., is the
originator of the subtreasury scheme and he
was sought out to tell the readers of TEE STAR
something about this much-mooted question
wAr THE sUBrREAsURy PLAN REALLY Is
"welb" said Capt Skinner. "Icannot explain
this thing in detail in a brief interview. such
as you want, but 1 can give you an insight of
what it means. The subtreasury plan means
financial reform, and the principle involved is
the making of the staple crops of the country
a basis for the issue of a currency. They are
as stable as gold, and every dollar that is issued
will be redeemed by the actual needs of the
people. while every dollar fioated with such a
basis is bound to remain sound. This is the
only plan by which the southern and western
producers can dictate the price Of the two great
staples OF this CONTRIBUTION and wheat-end
these crops are matters of national importance.
They are the great contributors to our national
balance of trade, the great purchasers of for
eign gold and as long as protection is extended
to commerce and manufacturing the staple
crops of the country should receive the foster
ing care of the government
A FINANCIAL REVOLUTION.
ut means a big revolution in the financial
system OF the government, bnt the alliance will
insist that currency privilege shall be ex-
tended to staple crops on a parity with gold
and silver.
There are two practical ways of carrying
the principle into operation. but only one Of
them Is feasible. One is the repeal of the 10
a on tint he NJ iscI1a he
formation of state subtreasuries with the same
basic value Of land and staple crops. The other
is explained by the provisions Of the subtreas-
ury bill sent to the last Congress. The former
seeks relief within state lines, the other appeals
to the general government, and either would
be satisfactory to the alliance; but the first is
not feasible. because it would he impossible to
repeal the tax on state banks of issue at pres
ent. There is prejudice against these banks
in n large majority Of the states and ouly few
and the alliance itself would divide on that
issue. The people want immediate relief and
the alliance men believe that relief must come
through the operations Of subtreasuries of the
general government and they are practically
united in this demand.
THE DEMOCRATS AND THE ALI ANcE.
"As you know, en- democrat and take no
stock in the third party movement. believe
that our next convention should incorporate
the subtreasury plank in our state platform
and join hands with the alliance in securing
the financial relief sought. Both wings of the
party should make mutual concessions and
march on to victory next year. But the ALI
ance will never yield the subtreasury demand,
you can rest assured of that"
Capt. Skinner. many will be surprised to
learn, is not member OF the Farmers Alliance,
he being practicing lawyer. But he is in
great feather with the alliance people as the
father OF the subtreasury scheme.
WHAT MR.. ASHTON SAYS.
Mr.. F. Ashton is prominent and intelligent
alliance man of Franklin county. In speaking
of the alleged ''loan' of money to the bankers
by the government and that feature of the
subtreasury plan looking to the loan of money
by the government to the farmers he said:
1--WE are not Directing TO banks or bankers
we know them TO be u necessary part of every
civilized community. But we object to the
government giving the national banks power
Co issue national bank notes and tax the COM
munity for such issuance. We say that it is
loanlng money at per cent to the banks and
gives them power to loan the same money out
to the people at and 10 per cent. If the gov
eminent can loan money to the bankers at
per cent interest on the security of a bond We
want to know why the government should not
loan money to the farmer at per cent on the
security OF his Land or OH the imperishabe
products Of his land-sach as cotton-while it
is being kept"
But the opponents of the subtreosury tell
Mr. Ashton that the government does not
loan money to banks WHAT he calls ''loan,"
they say. is not a loan at all, but a tax-oue-
half per cent on the average deposits and one
half per cent on the average amount of circu-
tation issued. There is also. they claim, an ad.
ditionai tax of per cent on the amount OF cir
calation In excess of so per cent of its capital.
A bank does not pay interest on notes issued
by itself! When he claims that the government
loans money to banks. they say. he is speaking
OF the bank own unsigned notes, its own un-
made promise. How can the government
loan to man his own unmade promise? they
ask.
WHEREIN THE PROPOSITIONS DIFFER.
Capt. s. A. Ashe of this city, who was for
several years chairman Of the democratic state
committee and at one time the law partner Of
ex-Solcitor General Phillips OF Washington
and of Chief Justice Merrimon of this state
Is regarded rs one OF the best writer's in the
south on matters Of political economy. In
speaking OF this alleged loan to the national
banks he said
suppose We apply this national bank opera
ton to the subtrcasury idea The government
erects a ware house and AIR. Ashton deposits
81. 900 worth of cotton in it and the govern
ment hands him unsigned notes wherein Mr..
Ashton promises to pay to the bearer on de-
mand $500. These blank notes are valueless
until Mr.. Ashton signs them. When he signs
them they are his promises to pay and he can
issue them. The government holds the cotton
in trust AS a security for the payment OF Mr..
Ashtons notes.
THAT is the national bank operation applied
to the subtreasury idea. but 1t is not the sub
treasury plan. Under the plan the govern
ment is to lend money to AIR. Ashton on his
cotton.
"The two transactions are very different. In
the first the farmer issues his own notes. Sc
cured by the cotton; in the latter the govern
ment loans the public money to private indl-
vidual. No money is loaned in the first trans
action; in the second the government loans
public money to an individual to assist him in
his private business
Whatever objections ,night be raised to the
first arrangement, it is denied that the Consti-
tuition gives tc the government the right to use
the public money in the latter way.
II think, however, that there should be
sweeping changes i'll our financial system, which
is wrong and ought to be reformed but not by
the passage OF this subtreasury BILL
LIFE AT PINEY POINT.
Place to Which Many washingtonisns
Arc Attracted.