The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-09-22
CHEAP MONEY.
A Strong Defense of the Sub treasury
Scheme--Some Knotty Cues
tions for the Kickers
TO Answer
to Answer

of Cheap MOney-The Sub-Treasury
Scheme Tried-It worked to the utterde
mOraliZatlOn of a certain rich county
The effect felt all over the world" This
article was extensively copied North
and South by the enemies of financial
reform. The object of the article was
to impress the reader that the system
est 4blished in the Argentine Republic
was like the Sub-TreasUry plan, and
Senator StanfOrd's bill to loan money
to farmers on real estate. This article
was written to deceive, and was copied
to deceive. In 1873 there was estab-
lished in the Argentine Republic, the
capital city of BuenOs Ayres, the
hypOthecary or mortgage bank, whose
main object vas to make loans on all
kinds of landed property improved,
and unimprOved. Loans were made
by the banks on property at One-half
their value fixed by the bank apprais-
ers. The banks gave a mortgage bond
to run twenty-fOur years, bearing E to
s per cent. interest. These bonds were
specialized upon from the start on the
market and were invested in extern
sively in England, and lead to the fall
of the Barring Bros, of London, and
precipitated a panic that was felt all
ONCI III WI VI III CfCIJ CON1 L III ~
let. These interest bearing bonds
reached a circulation at one time of
one hundred and forty dollars per
capita. The bonding of a country at
One-half it's value, bearing 6 and s per
cent. interest, would bankrupt any
country four times as rich as the Ar
gentine Republic. Six and s per cent.
interest would bankrupt the best farm
+ of any country, though every foot
of soil was under a high state of cult
walton. This scheme was nearly as
wild as the South Sea Island bubble.
This scheme was conceived by banks
of issue and champiOned by the very
class the farmers must overthrow be
fore they regain their freedom. The
writer and every cOpiest knew that
within the Sub Treasury or Stanford
bill proposed to issue bonds or any
thing that could be thrown upon the
market to be specUlated upon. 1t is
we'll known that the farmers are
opposed to all interest bearing bonds,
or anythidg that can be thrown upon
the marked and gambled upon. The
thinking farmers know all the money
used to speculate upon Is taken from
the channels of trade, where it should
be kept, giving employment to the I'M
employed mlllIOnS.
The farmers have declared war on
all schemes that lead to specializing
gambling, as it is demOraliZing and
sapping the morals Of the Republic.
We will pay the writer Of the article
or any Of the cOpyists one hundred
dollars if they viii show how either
the Sub Treasury plan or StanfOrd's
bill proposes to issue anything interest
bearing or misunderstanding that
can be thrown upon the market to be
gambled upon, or that can in any way
produce a panic.
Now, gentlemen, trot out your
analogy. or acknowledge you have
lied wilfulIy and knowingly for pOliti-
cal effect. Please show the farmers
how depOsiting non perishable produce
in government warehouses and receiv-
ing 50 per cent. of their value would
produce a panic any more than if this
produce was sold to the spectators.
Be so kind as to show these benighted
farmers how the lOaning Of full legal
tender United States notes to the farm
ers on their farms at 2 per cent. interest
any more than the banks lOaning their
pro rata to pay on farms at s per cent.
will produce a panic? If the depOSitOr
spent his 50 per cent, would 1t effect
UIlc DtOSDCIlGN Ol Ill6 country dIlN
more than if he sold to the SpeculltOr
and spent it? If the farmer borrows
money Of Uncle Sam at 2 per cent. and
spends it in riOtOus living, will it hurt
the country any more than borrowing
it of the banks and spending it the
same way? Would it not be better for
the country, for the government, to
get that farm than the money lOaners?
VIII . 49,, oOr,E o4O,,O~+ ~, 1--,,-A+ H.
producers as quick as s per cent. You
know every dollar loaned to the people
by the government is kept in the chan
nels Of trade and the people get the
benefit of the interest. You know
every dollar loaned to corporations
(banks) is outside of the channels of
trade, and they get the benefit of the
interest, and more farms must be
mortgaged to get it back again. Please
show the farmers why the banks are
better entitled to the credit of the gov
eminent at l per cent. than the farmers
to the same at 2 per cent. Dear sirs,
inform the farmers how it is ~uncOnsti-
.tutiOnal to loan the credit of the people
to banks at l per cent, secured by L.
S. bonds, and is unconstitutional to
loan money to farmers at 3 per cent,
secured by farms from which the
money Is to be derived to pay these
bonds? Don't you know these bonds
are the signs of the produce deposited
or UndepOsited that must be sOld to get
the gold to pay these bonds?
Is it more constitutional to loan
money on the sign of the substance
than to loan money on the substance?
You are very fearful of initiation
and the dire effect upon business, and
YOU 20 into commissions when the farm
ers talk of $50 per capita put into cir
~culation without the intervention of
your pet banks. You rest, compare
lively. and see this money devil initiate