The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-07-30

All1auCG luedS. LIZ PASPoSS" '1@'t'S y
Banks of issue under proper restrlc-
tions.
The,obiection to this plan, however, is
that the same men who now control
the currency would still control it. [
do not claim him, as has been reported,
as a convert to the sub-treasury plan,
but his idea as to the need of an elastic
currency is the same idea advocated
by the Farmers Alliance, under the
same of a flexible currency. He IS
credited as being one of the best author
tiles on,fnance. We are not weddedito
the sub-treasury plan. We would wei
come anything that would give the
needed relief.
Some one asked for an explanation
of the term flexibility. DR.. Stokes re-
piled that feXibility means such a
quality of currency as, when the pro-
duce comes to be marketed will be in
creased and run along parallel with the
demands, and will never 60 beyond
them, and will thereby remove the
evils of contraction.
have rr)ve ! the currency Is lnsuf1l-
cient and needs to be more elastic. Now
how are these two needs to be sup
piled? First, by the issue of fiat"
money, which is based on nothing but
the power Of the Government to
pay. He claimed that Calhoun in his
great speech of 1887 advocated the idea
Of fiat" money.
One objection to currency OF this
character is that it has no basis but the
power of the Government to tax.
The only other plan is paper cur
rency based upon something OF value.
We have already gold and silver GER
tificates and National Bank notes.
There is DO chance Of increasing the
currency from these sources. Already
sixty millions of gold have been taken
out of the country in order, as / believe,
to prevent the Government from re-
deeming the bonds which fall due IN
September.
If all the gold and silver a ailable
were coined into money, 1t would not
increase the currency more than one
dollar per capita per annum, and at
this rate it would require forty years to
reach the per capita of circulation
which we demand.
What remains as the basis for the
issue of an increased volume OF curren-
cy? 7 can see nothing else save
aIonelands and products of the country.
Some other basis may develop after
awhile, and if they do and prove better
the Farmers Alliance is uound to ac-
cept them. Objections to State ban ks
of issue is that the notes of such banks
would not circulate at par, perhaps, in
other States.
lust wish to ask why the farmer
should be Disseminated against. The
producer of silver and gold deposits his
product in the warehouse, or the treas
ury, and has money issued on it. Then
why should not the farmer deposit his
white staple in the warehouse and have
money issued on it.
DIR. Stokes spoke about one hour in
bis opening and was given an atten-
tive hearing.
SENATOR BUTLER'S SPEECH.
Senator Butler was then introduced
and spoke as follows:
Mr.. Chairman, fellow citizens and
ladies of NewUerry County. 4 voice
in the crowd, Don't leave out Edge
field, there are some OF us here. Butler
continuing. II have seen good many
of you here to-day. I join most heartily
in the expressions which have fallen
from the distinguished speakers who
have preceded me in expressing my
qualification and satisfaction that all
the people Of this county, farmers, mer-
chants, professional men and laboring
men, are awakening and taking a deep
and profound interest in public affairs.
Agitation never alarms me. When
Younger I ratLer liked it; and now I
welcome with qualification the fact
that the people all over this State and
country are waking up and taking a
deep interest in their public affairs.
My experience has been that when
ever a question is argued fairly and
truthfully before the people they gen.
orally decide right, and therefore re-
ciprocate cordiallythe sentimentswbich
have fallen from the gentlemen who
have preceded me. I want nothing
but the light aud nothing but the truth,
and the people Of South Carolina want
nothing but that, and with nothing
else will they be satisfied. supposed
when accepted this invitation that it
was to address the people Of this COM
munity upon what is known as the
sub-treasury scheme of the Alliance,
that I would be confronted with an
array of argument in favor Of it that
would put me to my trumps to meet,
but af,er hearing the address of my
friend will say to him what one Of his
brother Alliancemen said to me after
al hours conversation on the train the
other day. He said, Senator Butler,
we are not so far apart after all l
Weld to my friend in the main all that
he has demanded on behalf Of the Alli-
ance ex Kept what he chooses to state as
the sub-treasury plan of the Alliance.
I propose to take issue with him in
some of his economic vieWs-some Of
his enunciations of doctrine of polltl-
cal economy. / do not know for ln-
stance that | could agree with him IN
his saying that the relation which the
currency of the country occupies to
product regulates prices. do not
know that that is sound doctrine.
No doubt it has something to do with
it. but there is another factor which
plays an important part IN the matter
of price and that is the question OF
supply and demand. If We bid not
made 3 million bales of cotton last year
cotton would bring higher price.
Why? Because the supply was greater
than the demand. If there is large
corn crop in this country it's going
down in price because the supply is
greater than the demand. So with
reference to a large wheat crop, the
identical reason applies. I: is true not
only of agricultural products, but it is
true of mining, pig iron and manufact-
urine products. One advantage that
the manufacturer has over the farmer
is this, when they find by their produc-
ton of the manufactured article that
they have more than they can secure
renumerative prices for they shut down
and stop work. So it is in the mining,
stock raising and every department of
life. The question of supply and de-
mand has something to do with 1t.
Jos. l.. Keitt interrupted Senator
Butler with this question: Does the
rule of supply and demaud apply to
money as Well as product?'