Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1891-12-17
between the volume Of money and ,he
demand Of 10 ;use. 5i5

demand OF 10 u1e. 5s N s IA VI gS
This consideration 81 the necessity for
the sub-treasury plan has already shown
what the objectof the measure must be IL.
1t flls the necessity for its existence. IT.
object is TO prevent the rapid and violent
,contractions and expansions Of the volume
sof currency, to which this country is. Il
under the present system subject, and
which are the worst form Of class legislk.
tion because they cause = discrimination
aganinst agriculture IS has been shown.
IT. object is 70 prevent this violent CON
fractions and expansion BY providing asafs
certain, conservative and cheap method
Of keeping TIE volume Of money ID the
same ratio % the demand for lts me 81.
AL seasons Of the year. Its object II to
remove the money 81 the country from
|the lit q speculative commod odities byS
destroying the power Of any man 81
set 81 men y corner II ana thereby con. CON
troll general prices lis object Is to give,
those who sell the results Of their years
productive effort, in the fall Of the year
an equal chance with those who sell at
AL seasons. It requires no elaborate
argument to present the perfections Of
this system. The simple exercise Of
plain common sense and the application
of business principles will demonstrate
it. We are suffering from rapid and
violent contraction of the volume of
money every fall. What IS the remedy
that common sense would suggest?
Evidently to have a supplemental volume
Of money put in circulation ut that
season which will compensate FOR the
increased volume of business and keep
up the same ratio between the volume
! of money and the demand forits use.
What kind of money should this sup
Elemental supply be? Government
money issued by the general government,
because no other can be made a full
Illegal tender, and it should be equal in
value and as acceptable for all purposes
at its face value, as any other form Of
money coined or issued by hegovern-
ment. That is to say, it should be a
redeemable currency, which to prevent
the exhaustion of the credit the gov
ernment, should be based on such pot
entail forms of wealth as to guarantee
that it would always circulate on a
parity with gold or silver coin or any
other form of money. A government
issue of treasury notes may become
deprecated because every dollar issued
tends to exhaust the government credit
lby like amount and whenever such
issue passed given point every addi
tional dollar issued would depreciate il
some degree the value of every one il
! circulation, but government issue
treasury notes based on the mos. ~, ,,ots,
, tial forms Of wealth COZ !, !. ,as.,.r,
depreciated because ..vo,v ,s .dditia, M q n 4
5 liaolll'y OIL the government would
accompanied BY Z like addition # :
| available assets and would not exhau,
) lts Credit u addition to being 4 leps
{ tender and redeemable by the po,,esr
meht IN taxes, it would be NAH
!, ~ - several OF the most potential form
" wealth, merchandise, demanded ever,
year Tor consumption. What ;s ~.
n'os' l'o'eatlaf forms Of wealth? Eyid
enIly such forms as must b., consn NOD
70 preserve life, food and clothing W.
nave now seen that there sbo,,1a
supp-enlental volume; that it should be
government si money, and that it sbould
oe good money, but how can exactly
ene r'snt quantity be secured every
year at the right time, and retired when
u Tue necessity cs'y forsits use ceases to existq
: me answer is plain and conclusive. +
is' oy basing such supplemental, ,ssne
upon the disturbing clementtha nro.
ouces the regular annual contraction
Continued on Fourth page1