Nevada County picayune., 1891-10-15
SUB TREASURY FALLACY.

! DEAR SIE: Your letter enclosing l McCune's card of Five good req sons why the sub-Treasury plan 1 should bc established, and request 1 ing that give my opinion of them through the Commercial and Gazette, i has just been read. The sub-Treas- ury plan is in these words:
 We demand the abolition of Ma tional Banks; we demand that the government shall establish sub-treas- urics or Repositories in the several States, which shall loan money di- rect 10 the people at low rate of in terest, not to exceed per cent per annum on non-perishable farm pro- ducts, and also upon real estate, with proper limitations upon the quantity of land and the amount of money, etc. "
 It also proposes to erect ware houses in which to store the non perishable farm products.
 The five reasons upon the card are as follows:
 1. Because It destroys the power of money to oppress. No corner can be made on money when the volume is flexible.
 :. Because it will prevent gen. eral depression in price during the season in which the farmer is a seller. ;. Because it bases money on the most potential form of wealth, in- stead of basing it, as this govern ment does, on the representative of debt.
 i. Becauae it will benefit all classes alike, and break up class privileges.
 ,. Because it's sole object Is to increase the money in circulation when there is an increased demand for its use, and by increasing the volume to correspond to increased demand, prices will not be contract ed. arehOusing and mOney-lend- ing are incidental to the bill, but are not objects.
 Numbers l, and , being of the same purport may be taken together and as l see the workings of the plan, 1t will have eXactly Y the reverse effect of that set out in these three reasons.
 Instead of destroying, it would confer upon money the power to op- press.
 Instead of preventing, it would increase the depression in prices dur ing the season in which the farmer is a seller.
 Instead of increasing it would de crease the money in circulation when there is an increased demand for its use.
 bet us sec how it would work. AS it is customary in the slang of the day to use Wall street" as the syn onym of all that is odious in the "money power" :" I will adopt the ex' pression for the sake of convenience To enable Wall street. to make ; corner on money with absolute sue cess, three data are necessary.
 |. The amount of money in eX' istcnce.
 ,. The time when it is mos needed.
 ;. The extent of depreciation which will follow a given imitation.
 The sub-Treasury plan furnishes all these. It furnishes the exact amount which has beeu added to the circulation by government loans. IL furnishes the exact date at which il will be needed to lift the loan. To- gether with experience of the past 1t furnishes the depreciation which will ! follow the increase of currency al | loauiug time and just what can be made by artificial contraction when | pay day comes.
 As things now are, gamblers in fu- lures and Wall street" brokers can not know what the crops are going to be, nor how much money will be required to handle any harvest, nor when all or any part of the crop will be thrown upon the market, so that speculation now is gambling pure and simple but under the sub Treasury plan it would be reduced