The Caucasian. (Clinton, N.C.) 188?-1913, 1891-04-09
Farmer FilalClGrS
and Their Remedy
CONTINUED from first Page. |

pL'EdO iT, tAtii Oh tIdt dCCGtlilU
the ratio OF the volume IS dou-
bic and should ! e represented
by the figure 4 during the short
period.
"Second-The inadequacy Of
the volume, with the downward
tendency i'll the prices Of pro
ducts, awakens the spirit Of spec
ulation, which floats substitute
in the shape OF credit paper.
which circulates as money.
"Ii the aggregate amount Of
credit pape" issued and cIrcula-
ted for the purpose Of handling
the crop during the short seas N
will aggregate $500,O0O,OO0, as
usually estimated, then on the
above basis I should be added
to the ratio Of volume, MAXIM
it 8 during the short season, and
making the ratio OF volume to
demand throughout the year as
follows: Long season, volume 2,
demand 4; crop season, volume
5, demand Il. This shows the
actual deficiency or contraction
Of tha volume during the short
season equals two ffths. or for
ty per cent. There is an actua.
decline in prices equal to forty
PEI cent. during the Short season,
thus proving the demonstration
correct.
"In support OF this sta tement
as to the fuctuation i'll price
every year would refer to Spot
ford's American Almanac, where
figures are given showing that
the average annual fuctuati ons
in piice Of the five products al
fected by the Sub Treasury sys-
tenn for twenty years--from '68
to lSS7-was torty-one per cent.
This practically means that
il the farmer received 1915 cts
for d product during the three
months III which he was compel,
led to sell that the mean price
he might have rea allied could he
have waited a short time was
100, and the price the consumer
would have paid him still latec
1905.
"Thsse changes are due to the
reduction Of general prices that
must follow tbs violent cortrac-
ton of the relative vo ume of
money, condition that is una
voidablv the result Of q fixed
and inflexible volume meati'ls
a great and suddenly augmented
demand.
HARD on THE FARMER.
"The conclusion from all this
is plain. The farmer makes his
investment when the volume OF
money is relatively larger and
prices higher. He realizes from
his investment during the season
in which prices are depressed on
account OF the excessive demand
for money meeting TN intiexible
supply. The result is, and has
been for twenty years, that he
sells at d time when prices are
forty per cent Iowec than they
were when lie bought. This is
largely represented at this time
by mortgage Indebtedness and
is an actual tangible discrimin-
alton against agriculture of for
ty per cent annually.
ONLY THE SPECTATOR BENEFITED.
"No class is benefited by this
discrimination except the ex-
ploiter.
every useful and productive
interest i'll this country should
be deeply interested i'll securing
a feXibility for the volume of
money that will be guarantee
against this violent contraction,
which is the true cause for the
depressed condition of agricul-
ture.
"The methods Of the proposed
Sub-treasurv system are such as
will exactly meet this condition,
and tbereby benefit all classes OF
society. 1t is the settled poiiCy,
and correctly so, of this govern
to forbid any issue OIL money
except by the government itself.
There are at present only two
ways for the government to get
it in circulation. One is to sell!
it and the other is to lend it to
the people. As o modification
OF this owners OF silver bullion
| are now authorized to deposit it
in government warehouses and
the government lends them
money on it. Now. if the Sub
Treasury system will enlarge
one of these channels for the
distribution of money and pro
vide for an emergency issue that
the suddenly augmented demand
created by dumping the years
product of agriculture upon the
market without increasing the
relative volume Of honey above
what is the normal mean aver
age, and provided also, that such
emergency volume shall be of
such a character tl.at it will al
ways pass current on a par value
with gold coin, then the Sup-
Treasury plan must be admitted
ITO be a conservative and efficient
remedy for the financial qnes-
ton, otherwise not.