The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1891-10-17
THE WEEKLY TRIBUNE.
SATURDAY. OCTOBER 17,,lS9l.
THE SUBTREASURY SCHEME.

houses providing for the appropriate
by the government of s%5O,OOO,OOO to b
used for the building of warehouses i
various parts of the country for tn
storage of staple farm products, such a
wheat, oats. corn, tobacco, cotton, an
wool. Every county which yearly pro
duced a half-million dollars worth o
these staples was to be entitled to
warehouse. The bill was drawn up b,
the national Legislative committee of tn
Farmers alliance and was the very nat
ural outgrowth Of Senator Stanford
hobby of the government loaning none,
to farmers on their perishable prod
ucts.
This is the way the scheme was to be
brought into play. A petition was to be
sent to the secretary of the treasury ask.
ing for the establishment of a warehouse
The petition was to be accompanied by
the government. Upon this site the
building was to be erected, the secretary
of the treasury to appoint a manager,
who vas to give bonds, to manage the
business whose salary should not be
less than $1,000 nor more than $1,000 a
year. After all was ready any owner of
the staples above-named might take his
crop to the warehouse to deposit and re-
ceive in return 80 per cent of its then
market value in the treasury notes, the
manager to decide what the market value
shall be. These notes were to be a legal
tender for all public and private debts
and could be made a part of the lawful
reserves of national banks.
This is the paying out part of the al
lance sub-treasury scheme. After the
manager had given "A receipt for the de
post of produce, which was to show the
amount, grade, value and date of deposit,
and amount advanced upon it with rate
of interest at II per cent per annum.
the farmer could negotiate his receipt by
endorsement. and the produce for which
it was given might be redeemed by the
return of the receipt and the money adj
n upon it and payment of warehouse
expenses. The money returned could
not be used the second time but was de-
stroyed by the secretary of the treasury.
Deposits not redeemed within a year
could be sold for the benefit of the gov
eminent.
Thus it may be seen that the whole
amounted to just this. A farmer
could pawn his non-perishable crop for
90 per cent of its value to the govern
ment redeemable within "A year by pay
ing n per cent per annum for
the money advanced and warehouse
charges. If he did not redeem it the
government could sell it to reimburse
itself, if the deposit would bring the
price advanced upon it. In other words =,
the government was to become a nation
al pawnbroker and the farmers of the {
its customers. @
There are so many objections to this
scheme that one is at a loss to enumer-
tie them all. They may be, however, ..
hus briefly noticed. The warehouse !.
managers would be appointed in pay :,
nent for political services and not for ,,
heir fitness for Office. They would have ;.
.bsOlute power to name the value of all .
reduce received and hence the sum the |.
armers would receive. 1t cannot be J
resumed he could distinguish the diff "
erence in the eleven full grades of cot :
On and thirty grades of wheat. If he "
ould not fix the price in accordance :
18th the grade or upon a uniform basis :.
the 80 per cent to be advanced, his :,
would cast discredit upon the =
alue of his receipt of deposit and upon "
he treasury notes issued to him, i'm :.
arting to the notes and certificates an a.
ncertain standard of value in the eyes Il
I the general public. u
II prices of produce went down after 3
ne deposit, it would be left in the ware !,
ouse and sold by the government for a
would bring. The effect of thus :,
lrOwing a large amount Of produce NJ
pom the market WOuld lower the price h
that held by the farmer and the result q,
ould be a great loss to the government =,
nd the producer. And what a field 4
ould be opened for spectators and r
indicates. They would so bull" and Il
the market for farm products 4
nat the producer would soon be at their 4.
lercy. A years trial of the Utopian p
theme would prove its weakness and ;,
tier worthlessncss as a relief to the J.
g~riculturalists Of the country, and the n
arehouses would only remain as monu- :,
to their folly. When such ID :,
theme shall be made t. work satisfac-
,rily to all concerned the millennium
i'll be near at hand. t;