Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-05-27
FARMERS ALLIANCE.

~
ing that the average annual fuctua-
lions in price of the five products
affected by the sub-treasury system for
twenty years-from 1868 to 1sS7-was
Al per cent.
This practically means that if the
farmer received 1915 cents for product
during the three months in which he
was compelled to sell that the mean
price he might have realized could he
have waited a short time was 100, and
the price the consumer would have paid
him still later was 1908.
"These changes are due to the reduc-
ton of general prices that must follow
the violent contraction of the relative
volume of mouey, a condition that is
unavoidably the result of fixed and
1nHexible volume meeting great and
suddenly augmented demand
The conclusion from all this is plain.
The farmer makes his investment when
the volume of money is relatively
larger and prices higher He realizes
from his investment during the season
In which prices are depressed on account
OF the excessive demand for money
meeting an infiexibIe supply. The re-
suit is, and has been for twenty years,
that he sells at time when prices are
forty per cent lower than they were
when he bought. This is largely rep
resented at this time by mortgage in
debtedness and is an actual, tangible
discrimination against agriculture of
forty per cent. annually.
NO class is benefited by this dis
elimination except the exploiter.
Every useful and productive interest
In this country should be deeply inter-
ested in securing a f1exibility for the
volume of money that will be guaran-
tee against this violent contraction,
which is the true cause for the depressed
condition of agriculture.
THE methods of the proposed sub
treasury system are such as will exactly
meet this condition, and thereby benefit
all classes of society. 1t is the settled
policy, and correctly so, of this govern
ment to forbid any issue of money ex-
cept by the government itself There
are at present only two ways for the
to get it into circulation.
One is to sell it and the other is to lend
1t to the national banks and let them
lend it to the people. As modification
OF this owners of silver bullion are now
to deposit it in government
warehouses and the government lends
money on it. Now, if the sub-treasury
system will enlarge one of these chan
nels for the distribution of money. and
provide for an emergency issue that
will increase the volume so as to keep
pace with the suddenly augmented de-
mQn6 NV
product of agriculture upon the market
without increasing the relative volume
OF money above, what is the normal
mean average, and, provided also, that
such emergency volume shall be of such
character that it will always pass cur
rent on par value wild gold coin, then
the sub-treasury plan must be admitted
to be a conservative an efficient remedy
for the financial question, otherwise
not
TO this severe test the advocates of
the measure are ready and willing to
submit.
1.-THE sub-treasury system is an en-
largement of the present national
banking law, the only notifications be-
ing that the loan of the bills BIZ the
but extended to all peO-
pie having the required collateral to de-
post. and that the collateral so depos-
tied, instead of being restricted to gov
eminent bonds, a simple evidence Of
debt, be extended to Il few leading
products of agriculture that form the
basis of the export trade of this country
and are positive evidence of wealth.
money put out under the proposed
system could never augment the con-
sumer's price, because it could never
abnormally augment the relative vol
ume. Therefore the highest prices. or
those which now obtain with the con-
sumner, would not be increased, but the
tendency would be to bring the lowest
prices, or those now realized by the pro-
ducer, up to the mean price toward
which the consumers price must also
tend.
"This government now maintains
about S346, 900, 900 of treasury notes that
circulate on parity with gold, that
are based on nothing but the govern
ment credit Several members of con-
gress have recommended that the
amount of such notes be increased.
This may be done and the amount
materially increased, without depreci-
atlng such notes from the gold stand
ard, but all must admit that there is a
limit, to go beyond which would depre-
ciate such notes and that such limit is
constantly changed by circumstances.
Il claim that the amount of treasury
notes that would circulate when based
on wheat and cotton would be self-lifn-
tied to an amount that would ALWAYS
keep them on a parity with gold. and
that none of the disturbing influences
which affect government credit would
have any tendency to depreciate such
notes from the gold standard
I'm considering this proposition it |
must be remembered that the farmer is |
not compelled to deposit his wheat and |
cotton. 1t is a generally recognized |
fact that the prices of these products
are regulated by the export markets |
which are using the single gold stand
ard of money, and therefore the prices |
of the products SO estimated would be |
gold prices, and whenever the increase |
in the volume of domestic currency aug |
mented the general prices of commodi- |
ties to an exact equality with such gold |
quotations for these products the equi- |
librium of price would be established |
and no more would be deposited-by the
farmers, because any further additions
60 the volume of the circulating medium |
would increase leeal prices IN local cur |
rency SO that it would pay better to sell |
than to deposit, and the products would |
come out of the warehouses and the |
money go into them, and consequently |
out of circulation, thereby automatical- I
iy establishing and maintaining the !
equiiI brium of prices.
SIN this connection there Is "a still |
more important consideration. # it be
true that of such products as are lead.
ing commodities of export the domestic |
READY FOR THE FRAY