The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-19
LITTLE. THURsDAY. SoY. 10.
DING OF DISCUSSION.


snas there Is strong opposition within
sne order in Mississippi and Texas to the
suD-treasury scheme. This scheme as pre-
ssnsed 70 the last congress provided for the
appropriation by the government of $780,
Vu.uU to be used for the erection of ware
houses in various parts of the country for
me storage OF cotton, wheat, oats, corn
and tobacco. Any owner of cotton, wheat,
corn, oats or tobacco might take his crop
g the nearest warehouse, deposit it, and
receive In return 80 per cent. Of its market
vaiue IN treasury notes, the manager de-
elding what that market value should be.
THESE treasury notes were to be specially
Issued for this purpose by the secretary,
no note to be less than 81 nor more than
&l,000, to be legal tender for all public and
private debts, and good as part of the
lawful reserve of national banks. The
manager was to give receipt for every
deposit of produce. showing its amount,
grade or quality, value at date of deposit,
and amount advanced upon it, with rate
Of interest 1 per cent. per annum, and
with insurance, weighing, warehousing,
chasing, and other charges deducted.
These receipts were to be negotiable by
endorsement. Produce deposited might
be redeemed at any time by a return Of
the receipt and money advanced on
interest, and the payment of al ware
housing charges. The money returned
was to be destroyed by the secretary OF
the treasury. If theirs were no .sedemp-
ton of deposit within twelve months.
sale was to be ordered for the reirnbr -
ment Of the governments
There warehouse managers would Of
coprse be appointed Though political in
Ansnosi would probably be incompetent,
LEI bald probably oserrate the produce
of political and personal friends and
undesrste tha. Of enemies. The farmer
would not get his money really at / per
osnk interest on 80 per cent. of the full
value Of his crop. The warehousing, in
surancs, and other expenses for cotton,
for example, are usually between and 9
per cent. of its value. This would have to
b paid to the government, and would
bring the interest up to 8 or 10 per cent.
On wheat and other products there would
be similar expenses, which would raise the
interest on deposits of them to nearly or
quite the same limits. The farmer would
really receive loan for one year from the
govsrnment at the rate of 9 or 10 per cent.
ofa sum amounting to four-fifths Of the
money of uncertain value. For the re-
manning fifth he would receive certificate
whose value would depend entirely upon
what he got for 1t in open market.
The advocates of this scheme told the
committee of the Senate that the deposits
would be so large as to require an addition
of one thousand millions of dollars TO the
currency. This currency, based upon I'M
certain and varying bases of valuation,
would be further Undated by the certifi-
Gates of deposit, which with the notes
/ their receivers would at once put in circu-
lation. Their legal tender quality would
not keep them from depreciating any more
than the legal tender quality of our green
back issue during the war kept it from
depreciating according TO the popular esti-
mate OF its value. These notes issued
In such volume would be fat money more
worthless than the land bank money of
Rhode Island of 1856. because that was
based upon tie land of the state; than the
Mississippi scheme of John Law in lis,
because that was based on all the property
of France; more worthless than the fiat
money of the Argentine Republic. for that
vas based on the landed property Of the
nation. and in all these instances the fat
money was declared to be legal tender and
70 be payable for public and private debts.
Tn all of them IL was issued for term of
years. Awriter in the Century recently set
forth with great force and elearness the
.nrreme worthlessness and wickedness OF
All. sub-treasury scheme as follows:
rn,. ~arehonse-depos money is based upon
.a.n,ry excspt the arbitrary judgments OF an
srr..ronsibie body of political appointees as to
fhc value OF products a year hence, ana Is 20 he
a.stroved NJ tue end OF year. Nobody would
.,rsane To take 10 AZ its face value in payment
m 4 debt. or IN payment for goods, and 1t would
=. conf,ued. a. the Rhode Island paper money
vas. almost entirely TO transactions among its
s.,v,n.l holders. Il would enormously initiate
s.;e.s On the communities In which itcireulAted
"a thus make dearer everything that the
$500 nad 10 bur. But IL would never 90 re-
$3.50 else where except at . discount. and con-
sscuentiy would have no effect Ia raising
49, price OF the products OF the farmer, W hieh
have 70 BE- sold In the markets OF the world.
The able lawyers Of the South, Senator
George. in Mississippi. and Senator Nor
-.n in Alabama, have denounced this sub
sre..urv ,cheme without qualification.
The government of the United States
can NOT constitutionally so into the bust
re,, al loaning money and specializing in
erops. Senator PETER ignoran'Iy asked
the Ohio farmers 'why. IL the government
loan. money to bankers at l and : per
cent. Il can not do the same for farmers"
John sherman promptly contFadieted
PETER. The government can not' under
law. loan money to banks at any rate of
interest; it can deposit in a bank public
money received from internal revenue and
public lands, but not from custom duties
Thi. is done not for the benefit of the
banks, but solely for the convenience OF
the neople and the security of the govern
men.. In such cases the bank has to give
security In United States bonds equal to