The midland journal. (Rising Sun, Md.) 1885-1947, 1891-05-22

u, 000, 00U OF revenue. This 10 not all
| for the plan puts the moaey in circula-
ton at the precise time and place where
it is needed, and automatically adjusts
itself to the needs OF each community.
1t creates a small money center by the
side of Industry and thus emsucipates
labor from The domination and rapacity
of the great money centers. 1t would
enable industry TO create money for
immediate use without being dependent
on the whiins or caprices Of lenders.
Wealth producers could pay cash and
escape the annoyance, the humiliation
and the burden Of ruinous credit.
As the object would be TO keep the
interest rate as low as per cent, no
one would deposit when it was at that
point because the government rate of
2 per cent added for inspection and
insurance would SO nesrly equal the
current rate that no one could gamble
on the margin Indifference.
Economists have for 500 years been
trying to adjust the volume of money
to the availsble amount Of precious
metals, This is, and must always re-
main as impossible as "squaring the
circle" because the metals always run
away and hide in time of trouble, war
or civil commotion. The real problem
is today the same it has always been.
and it is very simple one-to adjust
the volume Of money to the volume of
commerce. All that is necessary is to
permit the commodity to furnish its
own aux, be its own security, float itself
into market. This is the essence of
the subtreasury plan.
AS the natural and only measure Of
interest is the per cent of wealth ac-
cumula.ion, or the per cent Of incre-
ment of national wealth, the rate could
not vary from that per cent if industry
was free to provide its own medium OF
exchange for the volume of money and
the volume OF commerce would adjust
themselves to each other automatically
The benefit to be derived from the
sub-treasury plan is not confined to the
matter Of interest. 1t is also expected
to raise the price to the producer with.
out raising it to the consumer. A little
reflection discloses the fact that pro-
ducts of the farm are on an average six
months going into consumption. 1t is
upon this six months time that the
! gambler aud Spectator stand and take
the lions share compelling low price
to producer and high price to con-
sumner. Industry asks that the govern
ment shall stand on this six mouths
time and hold the surplus products
until it is wanted for consumption, or
SO much thereof as may be necessary to
keep in circulation sufficient money to
hold the interest rate at its proper level.
AS matters now stand, industry and
legitimate commerce are compelled to
oyerbid the Spectator and gambler for
the use OF the medium Of exchange with
! the result that these cormorants and
commercial vultures, being congregated
, at the great money centers. are first
served, and the further away from the
! money centers the greater the Interest
charge.
+ There can be no more nor better rea
son for this nation of 6p,O00,00O Of
; people being dependent ON New York
for this necessary instrument Of COM
, merce, than that all the plows anG
> spades should belong on Manhattan
7 Island and be let Tor hire 10 the high
} est bidder.
: The present system is like an invert-
. ed pyramid poised on its apex at the
: money center. One dollar in gold as
} redemption fund for SO. 46 legal tender
t 81 in legal tender floating 81 in baDl
r currency. The system yields nc
/. revenue to the government except tn,
e l per cent tax on bank currency. TIL,
r sub treasury plan proposes real pyra-
5 mid standing on its broadest face !;
S redemption fund Of 81 for every 81
8 cents or less, Of paper money, and pay
0 ing to the government a revenue OF
per cent. The government (the people
0 receives all the interest paid under tn
new plan. whereas under the old, tb
e money lender receives it all and th
e people pay all the expenses.
Iflabor that produces all else, evel
b the security and foundation of the pres
9 ent one sided and burdensome system
t can also furnish this indispensable ma.
i chine of commerce cheaper than tn
l. banker will do it, who shall forbid an,
J upon what princiDle of rioht shall r.