Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-31
SUB-TREASURT.
A system of Finance That Would be the
Ruination of the Farmers.

What is the Sub-treasury SchemeE The
principle upon which this plan of relief is
based may be briefly stated as follows:
That it is the duty of congress to provide
for the warehouses contemplated, to pro-
vide for the appointment of the officers and
managers necessary TO conduct the ware
houses, TO supply each manager of ware
house with legal tender notes sufficient to
advance tc the owner of cotton, wheat,
corn, tobacco and oats so per cent of its
value who may store the same in the gov
eminent warehouse, to provide for nego-
table warehouse receipt to be delivered to
the depositor. TO hold the deposit fol one
wear unless redeemed in the meantime by
a payment of the money advanced, to-
gether with per cent interest on the same,
and the fees, expenses, insurance, etc. If
not redeemed in twelve months the pro-
duct is to be sold for cash at auction and
the proceeds of the sale are to be sent to
the treasury of the United States and shall
then be destroyed.
| do not care to discuss the details of this
measure or to arraigu it for the immense
cost it may be to the tax payers. If the
principle upon which it rests is defensible,
if it be not class legislation, if it is expe-
dent and will give the relief sought the de-
tails may be looked after by congress and
made to conform
TO ECONOMY AND HONEST REGULATION.
What is the object of the measured
Its friends affirm that the volume of circu-
latiou is not sufficient to handle the crops,
and that in consequence Of that fact the
agricultural products of the country are
sacrificed annually, and that what the
farmer needs is q flexible shifting volume
of circulation that may be plethoric in the
fall when the crops are harvested, and con-
tracted in the summer when the crops
have been marketed; and that because this
plan would cast into the channels of circu-
iation billion OF dollars at least of legal
tenders each fall and return the same
amount OF money back into the treasury in
the spring Of each year 1t IS appro Ved as
specific For agricultural depression.
Is this q correct principle of finance, and
would it not complete the destruction OF
the farmers! With the same conditions in
respect of supply and demand the price of
commodity is fixed by the volume of money
IN circulation. 1t is therefore to the inter-
est of the farmers that the volume of money
should be as large as is consistent with
solvent finance when his crops are ready TO
be sold: and the converse of the PROPOSE
ton is equally true that when the farmers
desire to purchase, it is to their interest
that the volume of money shall be as small
as possible. For we all know by sad eX
perience that a stinted volume of money
cheapens the price of all commodities. Now
test the principle of this scheme by these
memorable laws of finance and see what will
become of the farmers. The crops woulC be
stored in the fall and the billion OF legal
tenders would &C out into circulation. The
effect would be OF course
TO RAISE PRICES
of commodities. All agricultural products,
all property-but would the farmer, who
has the cotton, wheat. oats, tobacco or corn
in store, be benefitedl If he wants to buy
goods for his family with his 50 per cent
he will find that they have all gone up in
price-agricultural implements, sugar and
coffee, everything. But if he takes the so
per cent and places it on his Indebtedness,
expecting to use the 20 per cent in his de-
post he redeems, what will be the result2
OF course all farmers who store their
crops will use the SO per cent or else they
would not store and pay charges, etc. Now,
when the farmers go to redeem their crops
the money must be
RETURNED TO THE GOVERNMENT.
They must therefore sell after the volume
of money is reduced. If they should sell
this certificate or warehouse receipt to q
speculator, OF course he would buy with
reference to the fact that he must sell the
produce upon a contracted volume OF clrcu-
lation. and his bid would be governed by
that condition. So my farmer friends will
understand that everything they have TO
buy will be enhanced by the output of q
billion or more legal tenders, while their
crops stand in the warehouses must after
being redeemed be sold after the billion of
legal tenders have gone back to the govern
ment. The so per cent is all they would
realize. It is not necessary in this state
ment to refer to the financial ruin the sud
den outpour of $1,000 100000 would entail
upon all the balance of the people by the
Ructuation of prices, am dealing with
farmers only. But there is another aspect
to this subject, to which ] will now allude.
The farmers generally will have to
SELL THEIR RECEIPTS
because they will not have the money to
redeem the property they pass into the
hands of spectators. Now what will be
the result Take Fannin county, one
of the richest, if not the rich
est, in all the state Suppose you store
your corn and wheat and oats in the ware
house and the Spectator gets control of the
receipts. The government is required to
hold the property for twelve months unless
sooner redeemed. Why may not the poor
people why not the thousands of fellow citi-
zens who are not farmers be compelled to
pay exorbitant and unchristian prices for
the uecessaries of lifel And would you
make your great government the jailor of
the necessaries of life and the soulless in
strument of extortion. Gigantic
SCHEMES OF SPECULATION
would be inaugprated. and that, too, under