Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-04
SUB-TREASURY.
A System of Finance That Would be the
Ruination of the Farmers.

Runation of the Farmers.
What is the sub-treasury scheme9 The
| principle upon which this plan of relief is
| based may be briefly stated as follows:
| That it is the duty of congress TO provide
| for the warehouses contemplated, to pro-
| vide for the appointment of the officers and
| managers necessary TO conduct the ware
| houses, to supply each manager of ware
| house with legal tender notes sufficient to
| advance TO the owner of cotton, wheat,
| corn. tobacco and oats 50 per cent OF its
| value, who may store the same In the gov
eminent warehouse, to provide for nego-
| table warehouse receipt TO be delivered to
| the depositor. to hold the deposit for one
| year unless redeemed in the meantime by
| payment of the money advanced. to-
| gether with 2 per cent interest on the same
| and the fees, expenses. insurance, etc. If
| not redeemed in twelve months the pro-
| duct is to be sold for cash ut auction and
| the proceeds of the sale are to be sent to
| the treasury of the United States and shall
| then be destroyed. ..,--. IS.
| do not care to discuss the details of this
| measure or TO arraign it for the immense
cost it may be to the tax PAYERS. If the
| principle upon which it rests is defensible,
| if it be not class legislation, if it is eXpe-
| dent and will give the relief sought the de-
| tails may be looked after by congress and
made to conform
| TO ECONOMY AND HONEST REGULATION.
Its friends affirm that the volume of circu-
lation is not sufficient to handle the crops,
and that in consequence of that fact the
agricultural products of the country are
sacrificed annually, and that what the
farmer needs is Il flexible shifting volume
of circulation that may be plethoric in the
fall when the crops are harvested, and con-
tracted in the summer when the crops
have been marketed; and that because this
plan would cast into the channels of circu-
lation billion of dollars at least of legal
tenders each fall and return the same
amount of money back into the treasury in
the spring of each year it is approved as a
specific for agricultural depression.
Is this correct principle of finance and
would it not complete the destruction of
the farmers With the same conditions in
respect of supply and demand the price of a
commodity is fixed by the volume of money
in circulation. 1t is therefore to the inter-
est of the farmers that the volume of money
should be as large as is consistent with
solvent finance when his crops are ready to
be sold; and the converse of the PROPOSE 4
ton is equally true that when the farmers
desire to purchase, it is to their interest
that the volume of money shall be as small
as possible. For we all know by sad ex-
perience that stinted volume of money
cheapens the price of all commodities. Now
test the principle of this scheme by these
memorable laws of finance and see what will
become of the farmers. The crops would be
stored in the fall and the billion OF legal
tenders would &c out into circulation. The
effect would be OF course
TO RAISE PRICES
of commodities. All agricultural products,
all property-but would the farmer, who
has the cotton, wheat, oats, tobacco or corn
in store, be benefited9 If he wants to buy
goods for his family with his so per cent
he will find that they have all gone up in
price--agricultural implements, sugar and
coffee, everything. But if he takes the so
per cent and places it on his indebtedness,
expecting to use the 20 per cent in his de-
post he redeems, what will be the RESULT
OF course all farmers who store their
crops will use the so per cent. or else they
would not store and pay charges, etc. Now,
when the farmers go to redeem their crops
the money must be
RETURNED TO THE GOVERNMENT.
They must therefore sell after the volume
of money is reduced. If they should sell
this certificate or warehouse receipt to
speculator, of course he would buy with
reference to the fact that he must sell the
produce upon a contracted volume of circu-
slation, and his bid would be governed by
tSat condition. So my farmer friends will |
understand that everything they have to
buy will be enhanced by the output of q |
billion or more legal tenders, while their |
crops sand in the warehouses must after |
being redeemed be sold after the billion of |
legal tenders have gone back to the govern |
ment. The SO per cent is all they would |
realize. 1t is not necessary in this state !
ment to refer Il the financial ruin the sud- |
den outpour of $1,000, 900 600 would entail |
upon all the balance of the people by the |
1uctuation of prices, am dealing with |
farmers only. But there is another aspect |
to this subject, to which viii now allude. |
The farmers generally will have to
SELL THEIR RECEIPTS
because they will not have the money to |
redeem the property thez pass into the |
the RESULT Take Fannil county, one |
of the richest, if not the rich |
est, in all the state. Suppose you store |
your corn and wheat and oats in the ware |
house and the Spectator gets control of the |
receipts. The government is required to |
hold the property for twelve months unless |
sooner redeemed. Why may not the POOR |