The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1891-06-12
THE lola REGISTER.
FRIDAY, JUNE -, 1891.
THE sUBTREAsURY.

THE SUBTREASURY.
Topeka Journal
The Alliance executive committee,
which spent nearly a week in session
in this city and did not adjourn until
last evening, has been considering a
gigantic scheme which practically
places the subtreasury plan of the Ma
tional Farmers Alliance.in the hands
Of private capitalists.
J. e. Hopkins who was delegate
from the New York Economic Club at
the Cincinnati convention, is the orig
inator of the scheme. He has been be-
fore the executive committe several
times explaining the plan and seeking
to secure its adoption. On the invita-
ton of the county Alliance officers of
Reno county and S. J. Atkins a menu
Der of the executive committee, he ac-
companied Mr.. Atkins to Hutchinson
Monday morning.
The plan is to establish bank i'm
each county of the State under the di-
rection of the local Alliance exchange.
The capital stock is to be furnished by
private subscription as in other banks,
except that as far as possible the SUBJ
scribers are to members of the Alliance.
In connection with each bank an ell
evator or store house is to be built. A
farmer may then dump his grain into
the elevator, receiving for it check
for so per cent of the value of the grain
deposited. BY paying small percent
age for storage and insurance he will
be allowed TO keep his grain in the
depository until such time as he may
deem it best to place it upon the mar
ket. Corn, wheat, rye, oats, tobacco,
cotton, silk, castor beans, or any i'm
perishable farm product, the price OF
which is not liable to too great fiuctu-
ations, is to be received at the deposi-
tories and deposit checks issued on SO
per cent of its value.
The amount of grain deposited in
this way must not exceed in the
amount of stock subscribed for the
bank. For example, if the capital
stock of the bank is for half million,
the value of grain deposited in the
warehouse must not exceed that
amount, while the deposit checks will
be limited to 800, 900.
AS soon as the capital stock of such
bank is subscribed 20 per cent of the
same must be paid in. OF this, one
half must be deposited i'm the home
bank to take up checks offered there,
the balance will be deposited in New
York where most of the checks are ul-
tinately taken up.
In case the scheme succeeds the pro-
jectors of the enterprise expect to found
State banks at central points, one in
each State and under the direction and
control of the State Alliances.
The checks to be issued by these
banks are peculiarly devised and are
printed in colors. Some have already
been printed and it is the judgment of
the Alliance officers that they would
be quite as hard TO counterfeit as a
National bank note. Each depositor
receives a check book with checks
made out in small amounts, the total
not to exceed so per cent of the value
of the grain or other product deposit
ed. These are made payable in gold
or silver at any of the banks run in
this manner, and it il intended that
they shall be circulated as money.
They are first made out in the name of
the depositor, and afterward indorsed
by him and made payable to bearer.
l.. T. Yount, editor of the Alliance
Tribune, said recently: "These checks
will pass current among our people,
and as soon as it becomes well known
that the collateral behind them is alb
solutely safe, they will he accepted in
general commercial transactions as
readily az National bank notes. There
is no way to make a man accept these
checks. For that matter you could
not make US accept bank note, but 1
notice that we are always glad TO get
them. This scheme if successful, and
there is no reason why it should not
be, will increase our circulation. 1t is
better than the sub-treasury scheme,
as it viii be operated by private capt.
tai and we can get the thing into mo-
ton at once. There is pl suty of East
ern capital ready to take hold Of the
scheme as soon as we get it started.
The other banks viii probably Oppose
it because it will do away with their
high rates of interest"
The executiveeommittee, it is under
stood, took no definite action in the |