Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-01-28
NEW BASIS FOR MONEY.


1 have a plan to remedy the present
unsatisfactory condition of finances
throughout the country. My plan is to
have the Government make use of the
surplus in the Treasury to erect store
houses of sufficient capacity throughout
the country for the purpose of storing
the more important products of the
farm: then fix a minimum standard
value on the non-perishable products.
The DakotaS, Nebraska and Kansas are
the agricultural districts most remote
from harbor of export. They should
be taken as the basis of the standard
of values. Proceeding eastward the
standard of values should be in
creased in proportion to the reduc-
ton of freight rates and the increase
in value of land and cost OF pro-
duction. The highest values would be
+ at the harbor of export. Then, if the
farmer could not find a market for his
( product equal to or above the fixed
+ standard, he could deliver it at the
Government storehouse at the fixed
value and take in exchange certificates
issued on the same principle that our
| present gold and silver certificates are
| issued. The product would protect the
certificate. Thus, in New. York, s.
certificate would represent so many
| pounds of wheat, corn or oats: in Ohio
! it would represent greater number of
| pounds; further West still greater
J quantity, the locality always governing
the fixed value of the product.
1t would be necessary to fix stand
ard value for the discharge of the prod
ucts slightly in advance of the value 4
which it was received, in order to coves
the necessary expense of handling, pos
| sible loss by fire and the natural shrink
age. The product should be subject to
delivery and removal, at the fixed value,
on demand. The control of this busi-
ness could be put in the hands of the
| Department of Agriculture, and the de-
| partment should not be allowed to re-
move the products from the original
| point of receipt except when the storage
capacity became inadequate, and then
| only to the nearest harbor of export.
The benefits to be derived from such
a system wonld be many and far-reach-
ing. The farmers is the only
product the production of which
is limited to only portion
| of the year, and it is attended with
uncertainties which make it the specu-
lator's object of investment. The
| speculator knows there will be a scare
| ity IN these products, sooner or later,
! and demand for his investment. Thus
| he buys in years of plenty at much
less price than gives the farmer profit,
and he compels the consumer to pay ex-
| tortionates prices in years of scarcity.
| The fixed values should be made on the
average crop and under estimates
based on money invested and
labor expended to produce the crop,
| and at values which would produce a
| reasonable remuneration to investors.
Then if the speculator desires to specu-
late in the farmers products he would
| be compelled to take them at a price
| which would enable the farmer to con-
tinue in his legitimate business.
We should benefit by joseph's inter-
| probation of Pharaohs dream. In wears
of plenty without the aid of the
speculalor, we should store for years of
failure. While the Government held in
store any quantity of these surplus
crops, which could be obtained on de-
mand at fixed values, it would not pay
the speculator to invest his money in
them. If time should come when the
supply was likely to fall much below
the demand, the speculator would like
ly take hold as he does at present and
| Ss he did with gold and silver during the
war.
With the speculator ont of the way
the next benefit will be that the certifi-
Gates will give us a large volume of cur
Yency on as safe basis as the issue of
the gold or silver certificate. The ar
| ticle demanded by these certificates will
sustain life, while the gold and silver
can not sustain life, but merely pur-
chase the other products The certifi-
Gates would be in circulation only in
proportion to the products in possession
of the Government at fixed values.
| The products stored would not be
taxable, but the certificates out
standing would, which would not pro-
duce any injustice in that direction If
this plan were in existence to-day we
should have millions OF dollars in cir
oulation, with our surplus products in
store for possible failure in the future
The farmer, with his product safe in
| this manner, is placed on an equal foot
ing with the banker with his Govern
ment bond and the present National
bank currency, with the exception that
the banker receives interest on his de-
post and the farmer would not: but the
| two currencies would be equally valu-
| able as currency to loan.
With fixed values on farm products
| land values would not f1uctuate in the
| future as they have in the past The
] farmer could figure on his average crop
| with certainty and decide what ven-
| lures to make. The same benefits
would be furnished the producer of
stock. He could figure with great de-
gree of certainty. He would know in
| years Of plenty that he would have to
pay the receiving fixed value. and in
| years of crop failure he would have to
| pay the discharge fixed value and draw
| from the Government supply so long as
| that lasted and not be at the mercy of
| the speculator; neither would he be
| forced to reduce his production in years
| of crop failure and be caught without a
supply when there was surplus of
farm products, just as the case is to-
| day.
The dealer in or shipper of farm pro-
ducts would be benefited also. The
| markets would not ductuate materiallv
| from year to year and he would have
but very few losses. Tie could continue
in business when he could find makef
which would enable him to pay the
fixed receiving price, or higher, and
when ne could find no such market he
would discontinue buying and let the
produce go to the Government store
housh and remain there until Ec did find
market that would enable him to
draw from the Government store at the
discharge value and resume business.
Inc iaoorer would net suffer, either.
Inc average price st which he Isuys his
provisions would not be greater and by
not having to pay premium TO the
Spectator 1t would be less The mer-