The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1891-02-21


in prices but all would share sub
stantially a common fate in the end,
for the growth and prosperity of the
country as a whole would be destroyed
as long as such a system existed.
But, during the time when these great
food products are locked up in the
warehouses, or In the sub-treasuries,
as they are miscalled, what is to be-
come of the millions of people who
reside in the country but own no
wheat. corn or oatsf They are to be
starved into submission to the demands
of specnlators; they are TO be deprived
of bread until such time as they be-
come willing 10 pay whatever prices
the purchasers and holders of ware
house receipts may see proper to ex-
tort from them. No such facilities as
this scheme will afford for controlling
the markets for purely speculative
purposes have ever existed in this or
any other country, and no more per-
feet system for the oppression Of the
poor could be devised. The exact
quantities of products on deposit in
the several public warehouses will be
known In every commercial and iinan-
cial center, and combinations to pur-
chase and hold the receipts could be
easily made, especially when they can
be procured by the payment of small
per eeutum Of the value of the deposit.
But II may be contended that the
farmers can sell their products while
they are on deposit and receive the
benefit of the high prices which will
temporarily prevail on account of the
imitation of the currency Ii tho vol
ume of currency were to be perma-
nently increased so as to make prices
permanently high there would be some
force in this suggestion, though even
in that case the prices OF everything
the farmers are compelled TO buy and
use would be increased in the same
proportion and they would gain moth
ing substantial in the end. But the
volume of currency in circulation is
not to be permanently increased under
this plan, for, as already stated, each
imitation must be already Immediately
followed by n corresponding contrac-
ton. In view of this inevitable con-
traction and consequent fall of prices,
Of course, while the currency Is inila-
ted and prices are high no actual con-
sumer will purchase the stored pro-
ducts except in such small quantities
as he Is compelled to use from time to
time. The regular and Legitimate
market which the farmer has hereto
fore enjoyed will be in a great meas
ure destroyed, aud the trade will
necessarily fall principally into the
hands of combinations and syndicates
of spectators who are able by reason
of their large capital to monopolize
the stored products and keep the
prices up for their own exclusive beno-
fit after they have purchased from the
farmers. The farmers cannot combine
to keep the prices up because in the
first place they are too widely scatter.
ed to act In concert and In the second
place they are not In pecuniary con.
dltion TO carry their products beyond
the end Of the year when they must
be redeemed from the warehouse or
sold at auction by the Government,
IL they were in a condition TO do this,
they would not need public ware
houses, or advances of money from the
Government.
IL Is claimed by some, however, that
whatever may be the case In regard to
other products, the entire cotton crop
could certainly be sold during the year
to our own manufacturers aud for OK
portetion to other countries, and upon
this assumption strong aud partially
successful appeal has been made to the
planters of the South to give their sup
port to the so called sub-treasury
plan. In my opinion our domestic
manufacturers Of cotton goods would
be able TO purchase very little, If any
raw cotton at any time If the proposed
plan were adopted. No one could
successfully carry on the business OF
manufacturing cotton goods or any
other character of goods under q
financial system which inflated the
currency and increased prices when
he wanted to purchase his material
and contracted the currency and re-
duced prices when be wanted to sell
his products. tSpch a system would
soon close every cotton factory In the
United States, because these owners
would find IL impossible to sell the
finished product for enough to pay fol
the raw material used In its fabrica.
ton. But even IL they could conduct
their business at all with such enor-
nous fluctuations of prices, common
prudence would dictate the purchase
of just as little cotton as possible
while prices were high, especially
when it would be positively known
that few months would bring q con.
traction of the currency and lower
prices.
About two-thirds of your cotton
crop is exported and sold in foreign
countries, and Its price fixed there. |
presume no one will seriously contend
that prices can be increased abroad by
Initiating the currency at home. Dur
ing the war the price of this article
was very high in other countries, and
il was high not because we had abund-
ant and deprecated currency, but be-
cause the Southern crop could not
reach the European markets. The
law of supply and demand regulated
the price then as II will continue to
regulate it hereafter, no matter how
large the volume Of circulation may
be at particular times in this country.
AS long as the world produces q suf-
iicient supply Of cotton and the mark
cts of the world are open to 1t, the
natural laws of the trade will regulate
its prices, and no artificial arrange
ments here will affect II except to the
extent of the demand for home con-
sumption. This home demand may be
destroyed altogether by such periodi-
cal infations and contraciions of the
currency as will make the business OF
manufacturing too hazardous to be
carried ON, and in that event unless
production is greatly diminished, the
foreign market would be over-sup-
piled aud the prices would fall even
below what they now are.
have thus given you as briefly as