Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1891-08-06
$3.50 IN ADVANCE
A Letter From VIM Baker. NJ. q.

Some time ago one pE our citizens
wrote William Baker, Congressman.
of this District, for his opinion of the
sub-treasury plan. In reply Mr.. Bak-
er sent the following letter:
LINCOLN, Kan, July 1881.
Dear Sir:
Yours of June 25th, owing to mis-
| direction failed to reach me until a
few days since. I shall now endeav-
or to comply as near as time will per-
NIT with your request.
First, it will provide a safe way to
increase the volume of currency. All
agree that we need an increased vol.
ume of currency.
Second, it will cause the great food
products of the country, to gradually
move from point of production, to
point of consumption, as required by
the law of supply and demand for
their use.
Third, 1t will have a strong tenden-
cy to destroy the present speculation
upon the food products of the coun-
try, tne-"' bringing the producer
and consumer of the great food pro-
ducts closer together, and leaving on
| ly transportation and legitimate
profits between them.
Fourth, the experience of the past
teaches us that large proportion of
the financial troubles with which this
country has been cursed, has come
from the fact that we have not had
enough money in circulation to do
the legitimate business of the country
upon at any season of the year. Par
ticulaIly is this true from July LIST to
January LIST, when the farm products
are being placed upon the market.
| We have been compelled to rely for
the means to do the business of the
country largely on bank credit. SO per
cent. of the business to-day, is done
on bank credit. The interest of the
farmers and laborers demand hexi-
BILE currency, so that when there are
large crops to move, we may have a
large increase in the circulting
medium.
For further information I refer
you to the Advocate July 18th, 1891,
page I'd.
The great bulk Of the money is con-
centrated in the great money centers
of the country, during the first months
of the year; but when the great food
producing regions of the country yield
forth their bounteous harvest, situa-
ted as it is il the great interior, aud
those products must be moved to the
points of consumption, which under
existing circumstances, are far remov-
ed from the producing section; it Gre
ates largely Increased demand for
the use of money, and begins to draw
money from the great money centers
to the great interior; this contracts
the currency at the money centers,
destroys credit, depreciates the price
of all stocks, and active securities up
on which money is loaned, requires
the banks for self-protection to call in
their loans which in turn makes
stringent money market; and the
banks at this juncture, to avoid pam
ic, have been in the habit of calling
upon the government for relief; and
had that relief not been furnished, it
is within the knowledge of every citi-
zen of this country, that within the
last ten years, had it not been for the
timely relief offered, we would have
seen several financial panics that
would have been absolutely ruinous
to the business and industrial inter-
ests of this country. These conditions
are admitted to exist by every one
who has given any thought to the
subject, and Is produced by the false
condition of things as they now exist.
It is therefore the duty of every states
man to seek out the remedy for these
wrongs. And perhaps the most feas-
IDLE one yet suggested, is the sub
treasury plan constructed into law,
with the proper limitations. This
would permit these great products of
the country, to create their own means
Nf Il
to point of consumption, without call
ing the money necessary to do the
business at other points away from
their necessary functions. The nat
ural law of demand, having the gov
: eminent as the fountain head of sup
, ply would naturally draw out a suffi-
Gent increase of money to balance
that required by the increase of busI-
ness in moving these great products.
It would remove the inducement to
speculate in these great products. It
would destroy the necessity for all u.s.
ury laws. It would drive specula-
ton from the marts of commerce. It
would bring the producer and con-
= sumner close together, with only trans
, portation and legitimate profits be-
tween them. It would keep the price
of all products uniform throughout
the year, governed only by the natur-
al law of supply and demand. In
short it would make an elastic curren-
cy, that would move up and down
with the wants and demands of trade
t and commerce, and the financial poll
, cy of the government would then be
l returned to it's true status; a policy in
the interest of the whole people, and
not IN favor of gamblers and specula-
= tors, who know these underlying rules,
7 buy up the great products of the coun-
a try at the time, the currency is con-
: tracted by the great increase in busi-
p ness, and held until the currency is
r again Taxed by the great crops being
2 moved of, and money has again, BY
o the payment of the debts of the farm
r ers moved back to its centre; when
: prices Immediately again enhance.
n This in turn explains in a measure the
r reason why, wheat, corn, cotton, and
J. such products are always cheapest at
the tune the bulk of such crops are
being moved. To state it shortly the
currency is contracted, in other words
the same law of supply and demand
8 appears as favorable to the commerce
of the country as it does to any other
commodity. Yours in haste,
WILLIAM BAKER.