The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-08-27

is put in operation, the printing
presses set at work and the farmer
furnished by the government with al
the moneylhe desires at low rate O.
interest, or without interest; that
these notes do not depreciate, do not
| by the simple process OF becoming
"poor money! drive gold and silver
out of the country, but circulate side
by side with them; is the condition OF
the farmer improved? He gets his
money much cheaper and thus eff
fects a very considerab BILE saving in
nominal interest. He is also enabled
to hold his crop for better prices in
stead of being forced to sell as he har-
vests it to meet his obligations. Our
surplus of agricultural products is so
large that we can "bulln or "bear''
the European market and through it
the home market by scant or redund-
ant expectation. This is what the adj
vocates of the sub-treasury plan see,
but there are some things which they
evidently do not see.
Let us suppose that every agricul-
tural county in the union is supplied
with sub-treasury and money galore.
Let us suppose that the worlds crop
is good, the supply large as compared
with the effective demand. Naturally
prices rule low. The American farm
ers, being well supplied with money
by the government, naturally de-
termine to hold back for better prices,
to "bull the market" In the mean
time they must buy many things.
What are they going to buy them
with? Money. But the shoemaker
and clothier cannot eat money, cam
not make it up into shoes and coats.
The halter cannot wear money even
if it be paper rags. These men accept
money not because they need it but
because they can exchange it for
something they can eat, wear or work
up into more goods. If it will not so
exchange they will none Of it. They
cannot buy foreign food, stock, ETC.,
with American paper; neither
clothing, tools, etc, with it. The
foreigners will give us goods in en-
change for goods, or goods i'll eX-
change for gold and silver, but as for
rags? why they have quite enough
and to spare. Clearly under such con-
ditions our gold and silver will take
unto itself the wings Of the morning.
The merchant, the manufacturer, the
mechanic will accept the farmers pa
per, purchase gold with it and eX-
change that for foreign food and
fibres-putting it in the subtreasury
beneficiary's bill! Clearly this were
no way for the agriculturist to raise
mortgages! But, you say, this is an
exaggeration Granted. But it is
such only so far as it presumes that
the subtreasury plan would be sue
enable the American
farmer to withhold his products and
"bull the market"
~.
But the chief objection to the
scheme--it cannot rightly be called
plan, for plan presupposes some pre-
sciences-is yet to be stated. The
American farmer can only force
prices upwards by withholding his
products from the market until a
scarcity is created; until the demand
exceeds the supply. AS he pushes
prices upward he "cuts his own
throat.n He forces agricultural de-
velopment in all other countries. The
higher he forces prices the more rivals
he raises up in other lands. When it
is remembered that there are yet
hundreds of millions of acres OF cheap
and fertile lands untitled in foreign
countries, kept so largely by the low
prices of American products, and that
despite those low prices powerful
rivals are developing, it will be seen
that this is no idle alarm.
AS before remarked, the farmer can
only force prices up by holding back a
portion of his produce, by diminishing
the supply relatively to the demand.
Granting a series of average crop sea-
sons throughout the countries that
supply Europe and the western heml-
sphere with breadstuffs and fibres the
stock in the warehouses OF subtrea-
suries will steadily increase. Ere long
perhaps half of the entire American
crop will still be held at the end OF
the wear. What shall be done with
it? To turn it loose will push down
prices of the new crop below the nor
NAL while the object is to raise them
above it. AS the stock accumulates
the government must issue more
money to enable the farmers to hold
it. The dam across the stream must
be steadily built higher and higher in
this case or it is practically useless.
*s*
What the American farmer needs is
not a device for forcing the price OF
his products up, but one that will
force the cost of their production down.
The former narrows his market; the
latter expands it. 1t matters much
whether the farmer eXpends sou rails
inc a bale of cotton which he sells for
$50, or $40 raising one he sells fol, 500.
At the former figure he may be ell
bowed out of the market, while at the
latter he may remain forever its mas
ter. Cost of production determines
who feeds and clothes the world. me
American farmer must study, not so
much how to obtain more for his pro-
ducts as how to take less and make
better profit. ,..,
How can the cost Of production be
reduced? BY reducing the cost OF
everything the farmer is compelled 10
Inv including land by lowering