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

this fair proposition, slet US find out
the truth of the matter and adopt the
measure if it is good"
The party press at the dictation oil
the party boss says, "let us examine
this measure from the standpoint Of
party politics; if we can use ii for the
party let US adopt it;if not, reject it.
Coming to the sub treasury plan along
this road, both great parties have ar
rived at the same conclusion-it cannot
be used for party purposes. Why
Because the tenefciaries Of the present
unjust and despotic system furnish the
money that pays campaign expenses,
and the contests between the parties
are now decided by the size of the cor
ruption fund. Forthwith the press
assails the sub-treasury plan, not with
argument, but with SANDER; not with
facts, but with :alsehoods; not with
reason, but with ridicule, the purpose
being TO deceive rather than instruct
the people.
The Farmers Alliance and Industrial
Union demands the adoption of this
sub treasury plan, or something better.
It is conceded to be in formative
condition. The maximum loan Of so
per cent is suggestive only.
One of the purposes of the measure,
perhaps the main one, is to increase the
volume Of money and thereby reduce
the rate Of interest.
Industry cannot afford to pay more
for the use of money than its own net
profits. These net profits have fallen
below per cent for the past twenty
years.
The sub.treasury plan is intended to
enable industry to provide the medium
ofexchange, or part Of it, by furnish
ing the basis, the security or redemp
ton fund. No doubt the plan will
include, as it ought to, the products Of
mechanics, miners and manufacturers,
as well as farmers. 1t will matter but
little who furnishes the deposits; the
object is to increase the volume Of
money and lower the rate of interest.
If money Is a machine of commerce,
as all concede, it should stand on the
same economic law as other labor saw
ing machines, to,wit: The cheapest
services.
The idea that the plan contemplates
the government as "a ready cash Gus
toner is erroneous. The government
Is not asked to buy one penny's worth
ofanything, nor take any risk whatever
The government is asked to hold the
produce as security for the money
issued to the depositor, very much al
the government holds the bonds as
security for the money issued t.
national banks.
Another error the party press ha'
fallen into is, that the government
would have to collect by taxation thu
money loaned to the people by THU
plan. No such thing is contemplated
The government would issue the money
direct to the depositor and would be a
no more expense than in furnishing
national banks with currency. Nationa
bank currency must be redeemed will
illegal tender" and the redemption funt
required to be kept on hand is 20 pc
cent of the iesu..
The sub-trcasury plan proposes re
demption fund of l25 per cent in non
perishable products. If the maximum
issue Of 10 per cent suggested by til
farmer be too great, no doubt the,
would be glad to try the plan with s.
per cent. If the industries of tn
people could generally be included n
doubt 30 per cent would sustain vol
ume of money as ample as would b
necessary. Surely the government
would risk nothing 10 loaning so pc
cent CT the value of corn, wheat, cotton
tobacco, whiskey, mess pork or tn
staple manufactures Of iron. cotton, o
wool. The government receives bond
(shey are really based on the product
of industry as security from the bank
and issues 80 per cent of currency t
the banks at q cost to the banks Of
per cent in taxes. Why net loan I
industry direct? The farmers plal
offers to pay twice as much for th
money as the banks pay. The expens
Of setting up this proposed institutio
is very small matter compared wit
other department expenses. Suppos
there should be ware house built q
each ftho 500 cities having popul'
ton Of 10000 people, 800 more at ayr
cultural centers, 800 more at manufa'