The midland journal. (Rising Sun, Md.) 1885-1947, 1892-02-26
THE SUB-TREAS-
URY.
PAPER READ BEFORE RISING SUN
FARMERS ALLIANCE.


Our subject for discussion to day is
the much talked of, misrepresented and
misunderstood sub.treasury Of the
Farmers Alliance. This plan Of the
farmer organizations was devised, or
rather reproduced by the farmers as an
effort Of self protection. The plan is
not new by any means. The same was
in vogue in the colonial days Of this
country, also 10 Prussia after Frederic
the Greats long wars, and in France at
later period, 1848 In Russia the
same is at the present timo in use. In
all Of these experiences Of the sub
treasury or warehousing system, it has
proved o most remarkable success. In
the different periods where and when
the warehousing system has been in
operation there has been changes in
details to suit the circumstances of time
and place, but the prsnciple has always
been the same, and it is the principle
on which our present financial system
Of National Banks is based. More than
this the principle underlies all money
transactions involving borrowing and
loaning.
Benjamin Franklin was the first to
advocate in this country, the system OF
issuing money BY the State, the secu-
rity for such loans being the farm lands.
This was in 1927. A period of great
distress then existed in the colonies on
account Of the want of money, the
mother country" as England was
called, draining all the coin-which
was but small quantity at best-away
from the colonies to pay taxes and for
articles BROUGHT to the colonies from
England. The colonial government
issued paper monsy which was loaned
to farmers, and mortgages taken by the
colonial government as security for the
payment of the debt. These were long
time loans, fifteen years, with light
interest and per cent of the capital
payable yearly. At the end Of fifteen
years the extra annual payment above
the interest liquidated the principal,
which every year grew less as also the
interest, till the vanishing point was
reached.
In Virginia and North Carolina the
warehousing system was in operation at
she same time or perhaps at an earlier
period. Tobacco was the farm product
which was warehoused, that weed be-
ing the principle cash article in EGG
land produced by the Virginia and
North Carolina farmers. Warehouse
receipts were issued by the colonial
authorities on the tobacco stored, which
passed as money throughout the colonies
doing all the work of money, or cir
culating medium. The tobacco, when
shipped to Europe was sold for money
or exchanged for merchandise, and the
end and aim of all trade was accom-
plished, which is the exchange of GER
tain Of commodities for those produced
BY people employed in different
branch Of industry. The farmers Of
Pennsylvania and the planters of Vir-
& mia both prospered because they OBJ
tanned money to carry on their work.
Money is not wealth in itself but merely
tool by which laborers can be set to
work creating wealth. There is nc
active wealth except in the things
which go to the nourishment of man
or to salty his numerous desires.
In Prussia it was the same want oil
money in the country which had been
exhausted by Frederick's long wars
which caused that great statesman, as
well as warrior, to resort to the loan Of
the States credit. expressed in legal
tender paper money. This money
which the State supplied was the tool
wanting to set the willing but idle
hands to work producing wealth,
France was in the same condition after
one Of her social volcanic eruptions in
l848 when every indication pointed to
the downfall Of the republic. When
everything seemed lost, and chaos about
to break loose, the decree was passed
authorizing the warehousing Of any non
perishable class of merchandise and the
issue oflegal tender paper money to the
owners Of the merchandise, which was
held in warehouses of the government
as security for the payment or return Of
money furnished by the government
Immediately quiet was restored, the
wheels of industry began to revolve
and more wealth to be created while
that which was stored in the warehouse.
began to flow out to satisfy the de-