The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-08-27
THE AUSTIN ICONOCLAST.
GIVES THE sUBTREAsURY SCHEME A
TERRIBLE TURNING OVER.
Let the Macuneites Proceed to Bump Their
Heads Against the Following Log
zeal Stone Wall, or Crawl
Over it, if They Can

The burdens heaped upon tll'
American farmer are becoming create
than he can bear. For years he ha'
asked relief, but asked in vain. Now
he is demanding it, not as favol
but as right; giving notice that he
will have it; that in some shape, by
some method, relief must come, and
that quickly.
One of the methods by which the
farmer hopes to obtain relief is known
as the "subtreasury plan" This pro,
poses that the government loan to the
farmer upon his -perishabie pro,
ducts money at q low rate Of interest
This, it is calculated, would relieve
him of the necessity of forcing his pro
ducts upon tho market regardless o
price, and rescue him from the re-
morseless grip of the 'money shark
AS understand the farmer, he is not
, irrevocably welded to this plan-only
proposes it us the best that occurs tC
him; is willing to listen to any kindly
criticism thereof; asks, in fact, that a
better plan be devised if possible.
1t is no criticism of the subtreaSury
plan to say-as many light weight
journalists and economic dilettanti
are saying - that it would "make
Uncle Sam pawnbroker." IF Uncle
hot ,o condition nP IN G
people by embarking in tue ''pawn-
bPolling business" there is no valid
reason why he should not do so. am
aware that many Democratic dry
goods box economists adhere to the
theory that governments duty is
identical with that Of q police
man; but this doctrine presuppOses
conditions that have no real eXis-
tence. No government finds it adj
visable to put this theory into prac-
tice; no government will find it advis-
able until social and industrial condi-
tions have undergone most radical
transformation. To say that the sub
treasury plan is Conference.-The" is
waste of lung power. If Democra-
Cy and progress are antagonistic, so
much thu worse for Democracy. Par
tisan dogmas must be measured by
justice and utility, not vice versa. To
say that is unconstitutional" were
like conforming child for outgrow-
ing his coat. If the plan be a good
one and does not fit the constitution,
it were an easy matter to make the
constitution fit it. Really, something
quite otherwise than jeers of'pawn-
broker" jejune cries Of "undemo-
'craticu and unconstitutional" must
be urged against the plan, or it's OPP
ponents were wise to muzzle their
mouths to hide their Ignorance; to
stop scribbling about it in the morn
ing dailies and elsewhere, that their
frivolity and want of understanding
do not bring them into well merited
contempt.
Let us consider the sub treasury
plan from purely economic stand
noinl. Let us see if it will accomplish
the purpose intended, that Of benefit
ing the farmer.
First, as to money. Of course the far
mer would as readily accept gold or
silver coin in loan as paper currency.
But the only way in which the gov
eminent can get gold or silver in
quantities worth considering here is
by taxation. Gree and unlimited
coinage Of silver will not supply the
government with that metal any
more than free and unlimited grind
Inc of wheat will supply the miller
with -four. Unless the latter takes
toll, the moro wheat he grinds the
less flour he will have; unless the
government charges seigniorage, or
at least "brassage," the more metal
it coins the less it will have. \ seign-
forage that would materially increase
the governments store of money. me.
tai would reduce the coins to "token'
money: would be an abasemeut such
as the oft repeated lessons OF history
adiure us to avoid at almost any
sacrifice. Clearly, if the government
lis going to lend extensively to the 1ar-
mer il must either raise the sum TO be
loaned by taxation-a plan so obvious
lv vicious that we need not discuss 1t
here-or issue vast quantity OF paper
We may thus conclude that the sub
treasury plan presupposes the issue
by the government of some hundreds
of millions of inconvertible paper-in-
convertible because there could be nc
sufficient body of coin behind it: The
simple fact that the currency is neon
vertible will not necessarily, cause
it's depreciation. If the issue does not
swell the currency above the actual
needs of the country, it may clrculat
at a par with gold, and without Gus,
placing single coin. But any
thoughtful man must cOncede thai
the danger of expansion beyond thai
point will be imminent. AS Mr.. Bage-
hot long ago pointed out "the mere
liability to depreciation without its
reality, may unsettle exchanges be.
tween the paper money country anc
those with which it trades, in a de
gree to work very injurious effects,
and these effects must fall chiefly up
on the main industry OF country
which, in tho United States is agrlcul
ture.