Evening journal., 1891-03-09

Chairman Macune Explains a
/. Big Alliance Scheme.
- IS THR sUB.TREAsURY SYSTEM

Glasses Except Spectators.
WASHINGTON March 9-Leaders Of thu
National Farmers Alliance complain that
much of the adverse criticism on their sub
treasury scheme is due to the fact that the
principles underlying and the necessity
for it are not properly understood
DR. G. w. Macune, chairman Of the ex.
ecutive committee of the Alliance in sneak.
ing of the scheme, said:
Chairman RTacune's Statement.
The necessity for something Of this
kind has been developed by the onward
march Of material progress For the last
twenty-five years agriculture has, as com.
pared with the other two great branches
Of tion-maHufacture and com.
merce- been rapidly becoming depressed
and Improbable.
This depression during a period without
. parallel Of material progress IN the
world history is indicative Of q potent
cause and is worthy the most careful anal
ysis. For this purpose take two of the
leading products Of agriculture wheat
and cotton-and trace the changes made in
regard 70 them during that period
Ahc seasons shortened
Twenty-Five years ago wheat was raised
by farmers throughout the north generally
As one Of their leading money crops. Near
~ all the work OF gathering and market
ing i was done by hand; local mills, thick
scattered over the country, ground the
flour for local consumption, and the bal
ance was sold when The price suited the
farmer
" n If fhta or, aronts..3 n ~, .3,..,4 ~. -
sale Of wheat by the farmer from August
until the next June or July. Now the de
yelopnent Of railway systems has brought
the great west so close to market that
wheat can no longer be profitably grown
~ the east, while in the west the wheat Is
cut and bound by machinery, taken 10 i'm
mense steam threshers, and the moment il
strikes tho elevator il is on the markets Of
the world.
The season, therefore, IN which the farm
er realizes from his productive effort. Is
reduced from ten To twelve months 10
period that does not, in its utmost limit
exceed three months
Now Finance system Needed.
For the same reasons the season for
marketing the cotton by the farmer has
shortened as much or more than that
Of marketing the wheat These changes.
brought about by the modern improve
ments that have substituted the railway
train for the ox-cart and the telegraph fol |
the courier, make some other changes nee |
essary, one OF which is a modern instead Of |
an ox-cart system Of finance
Under the old system the demand fol |
money to handle the products OF the eoun |
try being nearly the same throughout the |
year the marketing OF the products Of |
agrlcuuufe produced no great effect upon |
The money market. But under modern |
conditions Y produces most powerful
effect
Ffnetnation Of Forty-oRe Per Cont.
After alleging that the volume 81 money
u circulation is wholly inadequate for the /
demands Of business, Mr. Macune saws that 1
the average annual fluctuations in price
Of the hve products affected by the sub |
treasury system for twenty yeare-from 1
1868 10 lSS7--was Al per cent.
This practically means that II the farm
er received 79.b cents for product during
she three months ia which he was com
PEELED TO sell that the mean price he might
have realized could he have waited short
time was 100 and the price the consumer
would have paid him still later was 1905
These changes are due 70 the reduction OF
general prices that must follow the violent
contraction Of the relative volume Of
money, o condition that is unavoidablyl
the result OF a fixed and inflexible volume
meeting great and suddenly augmented
demand. 4
The farmer makes his investment when
the volume Of money is relatively larger
sud prices higher. He realizes from his ia.
vestment during the season in which prices
are depressed on account OF the excessive
demand ion money meeting an infiexible
supply. The result is, and has been for
twenty years, that he sells at time when
prices are 40 per cent. lower than they were
when he bought. This is largely repre-
scented az this time by mortgage indebted.
ness and y an actual tangible discrimina | I
hon against agriculture of 40 per cent No
class Is benefited by this discrimination
except the cxploiter
Every useful and productive interest in
this country should be deeply interested IN !
securing a Reliability for the volume Of
money that will be a guarantee against
this violent contraction which Is the true
cause for Abe depressed condition OF agri- I
culture III
The sub-Treasury scheme.
The methods Of the proposed sub treas
ufy system are such as will exactly meet
this condition, and benefit all classes. Ii I
j. the settled policy Of this government to
forbid any issue Of money except by the
government itself There are AZ present
only two ways for the government To pe,
u ~ circulation. One is to sell il and tn
other IS to lend il to the national banks
and let them lend il to the people
As modification OF this owners Of sil-
yer bullion are now authorized to deposit
y N government warehouses and the gov
ernment lends them money on IL Now II /
the snb-treasnry system provide for an
emergency issue that will increase the vol
une so as TO keep pace with the suddenly
augmented demand created by dumping
the years product OF agriculture upon tho
market without increasing the relative
volume Of money above what is the nor.
NAL mean average, and, provided also.
that such emergency volume shall be al
such character that il will always pass
current on a par value with gold coin.
then the sub-treasury plan must be al.
mitted to be a conservative and efficient
remedy for the financial question other.
wise not.
Willing to Stand the Test.
ITO this severe test the advocates Of the
measure are ready and willing to submit
Inc sup-tfeasury system is an enlargement
OF the present national banking law, the
only modihcations being that the loan Of
tne plils by the government be not restrict
ca 70 certain corporations, but extended 10
All people having the required collateral So
oep0eltea, instead Of being restricted 70
government bonds, simple evidence OF
debt, D. extended IA a few leading products
of agriculture that form the basis Of the
a.. 49, 4