The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-08-13
THE sUB-TREASURY MODIFIED.
Col. Ellison S. Keitt Suggests that States
Borrow from the General Government
and to Loan Directly to the People.

c., July 30.-The advocates of the sub
treasury scheme have never claimed
that the bill prepared by the legisla-
tive committee and introduced in the
House Of Representatives by the Hon.
Mr.. Picker is perfect. AL they de-
mand is the principles in the bill shall
be retained. Having demonstrated in
a former article that every principle
in the bill is in full accord
with the Constitution Of the United
States, I will now proceed to show
how the scheme can be put in full
operation without the erection Of ware
houses or the appointment of agents
by the general government and leave
the States with all their rights and
dignity unimpaired.
I will speak alone of South Carroll
ma, and what I say of her will apply to
each of the other States.
The National Farmers Alliance and
Industrial Union demand per capita
circulation of $50. How is this money
to be had and how are the people to
get it into their hands? The Supreme
Court of the United States has de-
clared that the Government of the
United States, being sovereign power,
can declare anything money and from
it there is no appeal. Whatever the
general government declares a legal
tender in payment Of debts is money.
South Carolina has in round numbers
100000 Of people. Fifty dollars per
capita in circulation will put $50, ,oOO,-
900 into the hands Of the people. Let
the general government print 5O,OOO,-
900 of legal tender notes receivable for
all debts, both public and private, and
advance them to the State Of South
Carolina, taking her obligation for
them, charging the State only the
cost of printing the notes, which will
be small fraction of per cent. Let
this money pass into the State treas
ury. Let one-half of it be loaned to
the people on real estate property re-
stricted and secured at 2 per ct. per an
mum for ten years, the interest and one
tenth Of the principal to be paid back
to the government at the end of each
year; the other half 70 be advanced on
any of the five staple products, cotton,
wheat, corn, cats or tobacco for one
year on terms absolutely safe. This
will give the country currency both
infexible and elastic and will meet all
the demands of business. AS the pop
ulation increases let TIE amount of
money in circulation correspondingly
increase 50 as to make it stable. These
notes based on the credit of the nation
will be good anywhere in our borders.
The government of the United States
will be absolutely safe as the property
of the whole State will be security for
them. The State can suffer no detri-
ment as the property of each individ-
ual will be responsible for what he or
she borrows. On real estate no one
person should be allowed to borrow
over $1,000 or less than 500.
Fifty million dollars loaned out to
the people by the State at 2 per cent.
will yield revenue Of 81, 900, 900 which
will mean all the expenses of the State
government and relieve the people
from taxation. This can be operated by
the State treasurer and the county
treasurers. Make it mandatory on the
county treasurers to report at the end
of each day to the State treasurer with
penalties so heavy and certain as to
prevent any failure to do so and the
State treasurer to publish at the end of
each month the exact condition so all
the people can know what is being
done. Each State will be responsible
only for the money she receives and
loans to her people, and can keep close
watch over it. Let US have one dis
tinctive American money, which will
be good everywhere in our borders, and
we will not be affected by any financial
disasters that may befall other nations.
There will be no need for government
ware houses or agents. The people of
each State will manage their own
affairs without any interference from
outside. If this plan is adopted the
rights and dignity of the States will
remain unimpaired and the people will
save vast sums they now pay to banks
and corporations in interest for money,
and what they pay will go into the
State treasury and save taxation. The
present financial system is based on the
bonds of the government. The last of
thes bonds are due in 1907. With their
payment the last of the national banks
will disappear and with them the pre-
sent financial system. We can not be-
gin too soon to inaugurate new sys-
tenn, one that will benefit the whole
peole.
Associate Justice Gray, in delivering
the decree of the Supreme Court Of the
United States in a case involving the
validity of the legal tender act, said:
"The court says in conclusion, congress,
as the legislative Of sovereign nation,
being expressly empowered by the con-
stitation to levy and collect taxes to
pay debts and provide for the common
defense and general welfare of the
United States, and to coin money and
regulate the value thereof and of for
eign coin, and being clearly authorized
to coin as incidental to the exercise Of
those great powers, to emit bills of
,rod;+ to ohio or national hanks and tn