Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1891-06-18
The Sub-Treasury Scheme.

1t is a singular fact that not one advo-
cate of the SUBJ treasury plan ever uses
logical argument in its defense. They re-
ly wholly upon demagoguery and the ar
gumentum ad hominem. They seek to
create the impression in the minds OF the
people that whoever differs TN opinion
with them is an enemy to the people, and
do not seem 10 hesitate to put false con-
structions upon what is said, in order to
produce this Impression upon their read
ers. 70 such tactics has the Southern
Mercury resorted in It's editorial columns
OF the 7th inst.
The journal of Agriculture is seeker
after truth. We do not oppose any plan
of finances, from whatever source it may
come, if it can be shown TO be good
measure; but we do think that any meas
ure. involving the expenditure OF millions
and concerning the welfare of the whole
people, should be discussed by press and
people freely and without prejudice, and
its real value determined. We hope that
the Southern Mercury will admit as much.
If it docs so, we cannot conceive upon
what possible grounds it can justify the
absolute misstatemcnt contained in the
columns Of May 9Th, whe" it says that
the journal Of Agriculture stated that
'FcoIton had not fiuctuated over $500 per
bale during the past ten years, and that
all other farm produce fluctuated in the
same rati0.n i his is an unqualified mis-
statement and it shows The weakness OF
the cause, when such means are resorted
to to bolster it up. What we did state,
ard proved by figures taken from the act
ual daily market prices of cotton for 10
years. was, that the difference between
the average price of cotton during the
three harvest months. and the average OF
the whole year. was not over S2,OO bale.
which is a very diff, rent thing and is alb
solutely true. About the extreme fiuct-
uati0ns nothing was said. There is very
little cotton sold at the extreme tiuctua-
tions. and it is OILY with the averages
that we can deal.
the source OF our information was the
daily record OF business, kept py the cot
ton exchange, and we presume Mr.. Spot-
ford GETS his information from tie same
place. Only Mr.. Spofford seems to deal
with the extremes while we deal with the
means, which truly represent the busi-
ness of the country.
When we ask the Mercury how farmer
having borrowed money would come out
i'm such a season as the one just closing
has been. when cotton sold higher during
the harvest months than at any other
time, the fact being universally known
and not capable of mIsconstructiOn, it
resorts to the only possible refuge and
simply asserts that 1t would not have been
so, if the sGb-treasury system were in
operation, Now this statement of the
Mercury is worth no more than its mere
statement in any other commercial prob
lem would be; let. us bring some cold
logic to bear on its statement.
We take it that no reader of any paper
is ignorant of the universal law of demand
and visible supply. The price is high or
low. according as the demand is less or
greater than the visible supply. This
fact every one knows. Well. in 1890. the
cotton crop was over million bales larger
than the largest crop ever previously
grown. That is, there was an increase
in supply of over II per cent, without any
orrespondng increase in demand. What
was the result? Cotton began to decline,
and the better the size of the crop became
known, the more it declined.
But. says the Mercury, if farmers could
have borrowed 50 pei cent. OF its value on
their cotton, and held it, the price would
not have so declined. Let us see. Sup
pose that. say three or five. million bales
were stored last fall. The holding back
of the cotton during the harvest months,
would of course, as long as the total crop
was unknown. have raised the price. The
wise farmers who sold early would have
gotten a better price. But what about
those who borrowed money and held their
crop? AS the cotton began to pile up,
and there were millions OF bales in sight.
and the fact became apparent that the
crop was the largest eyer made. and the
supply larger than any possible demand,
then what? Would buyers have paid a
higher price? Are cotton buyers fools?
We don t think they are. They would
simply have said, here's the biggest crop