The Bolivar bulletin. (Bolivar, Tenn.) 1888-1946, 1891-10-23

and every cent of this comes out OF
the farmers pocket.
This bill enacted into law would
evidently change, or have tenden-
CIV to change. the whole financial
system of our government. In
stead of money being circulated
through national banks il would
be circulated through government
warehouses. The main question
for US to decide IS whether this
change would be advantageous to
the people. 1t is true that there
has been, and is yet, serious objec-
tions to the national banks as q
means of circulating the currency.
While | do not approve of the lat
ter, I would much prefer it to the
warehouse system. National banks
are the legitimate offsprings of the
government. The supreme courts
have so decided. Objections
against the national banks become
Insignificant compared with those
urged against the sub-treasury.
What kind of money does this
measure propose TO put into cir
culation? A. spurious, irredeem
able currency called treasury notes.
which would soon become worth
less. These notes are only to re-
main in circulation certain length
of time. aud then be withdrawn
from the channels of commerce.
Through the national banks is cir
culated good, honest money, re-
deemable III gold and silver, which
can never cease to be money until
it is mutilated or destroyed. Sup
pose now that the sub-treasury be-
comes a law and warehouses are
erected-not a treasury note, not n
cent, not a dollar can come INTO
circulation until the products are
deposited. Then the depositor car
only draw eighty per cent. OF the
value of his deposit. Twenty pei
cent. is left with the government
and for what purpose God only
knows. When the products are
sold from the warehouse is it certain
that the farmer will get his remain
ing twenty per cent? Does he no
stand an equal chance to lose 1T
| If it is positive that he will get the
! remainder, why does not the gov
eminent pay him full value a
first? Is it not much better anC
far more safe for the man to borrow
money from his neighbor, or ever
from a national bank, at ten pei
cent. than TO risk losing twenty pei
cent? Are we to believe simply
because a farmer locks his cotton
in a warehouse that the price will
increase? The advocates of the
bill claim that it will create a de-
mand, and as prices are fixed by
supply and demand, their cotton
will necessarily bring higher
price. At the same time they are
willing to admit that the speculat2l
raises and lowers the price Of pro-
ducts. They also admit that the
formation OF trusts. pools and COM
bines govern and fix the price OF
products. How is it then that the
price is fixed by supply and de-
mand? Capitalists form trusts and
combines in order to lessen the price
of agricultural products when they
are put on the market, and after the
farmer has sold his hard earned
proiuc the price is increased. BY
this means the capitalist can buy
when products are cheap and sell
when they are high. Combinations
and trusts are in operation to-day
and are fixing prices. Is it not
reasonable to suppose that they
would fix the price of these products,
even though they be locked in q
warehouse? Some claim that when
these deposits are made, that the
trusts and combines will be comDell-
ed to disband, that they can no long.
er speculate on cotton, that it is
now locked up and safe and the far
mer waiting and expecting to get a
higher price than when deposited.
If the farmer can hold his cotton
with only eighty per cent. of Its
value, and it takes that and perhaps
more to pay his debts, | ask if the
capitalists cannot bold their money,
combine and fix the price of that
locked up cotton at very low fig
ures, so when il Is placed upon the
market 1t can be bought cheapg
To more clearly illustrate this idea
of the government warehouse and
sub-treasurY system making higher
prices, / will submit the following
for consideration. Say from the LIST
of September to the first of January
cotton will be deposited in the
warehouse to remain not longer
than twelve months. During the
months of September, October,
November or December, Mr.. A..
deposits one bale of cotton, weigh
ing 500 pounds, classed good mid
ding, valued at ten cents, which
would amount to $50. He receives
eighty per cent. of its value which
would be $40. Neither Mr.. A. or
the government can tell what the
price of cotton will be at any time
thereafter. Remember that trusts
and combines are still in operation.
John III. Mcdowell saws that claws
AGAINST combinations are Inonera.
tive; that combination must be met
by combination. Now the govern
-. L. ...to-ol .-to . hiatt.