The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1893-07-18
THE sUB-rREAsURY ADopTpD


THE SUB-TREASURY ADOPTPn
The Christian Patriot, Morristowu
Tenn edited by Rev. James B, Co..
verse, who is known to MANY of ON,
readers, makes the following able arom,
ment in favor of the Sub Treasure
taking the recent issue of clearino
house certificates for a text:
When the Farmers Alliance s,,
gested the establishment of 'ST6
Treasures" to receive the farmaro,
staple products and to issue legal tnn,
der notes for eighty per cent. of Their
value, a howl went up from all tho
daily papers, which the people and the
politicians largely sympathized with
The Farmers Alliance scheme in ito
main features has been approved hv
the New York Clearing House. This
association, composed to banks and
bankers, has resolved to receive the
b 1nds and paper of the various banFS
and to issue clearing house certificates
for seventy-fve per cent. Of Their
value. These Certificates are tn
serve as currency between the banks
The first contention of the Farmers
Alliance was and is that there is mt
currency enough. The bar kers nv
their action affirm that this is tru99
And they r partial judges. For its
to the interest of those who have
money and securities commanding
money to have a deficient currencT
For a deficient currency makes prices
low and gives to the owners Of money
more comforts and luxuries for what
money they spend and do not reinvegt
These prejUdIced judges, after ridiCuI.
ing the demands Of the Alliance. now
admit that they were and are entirely
just.
The papers laughed at the idea Of
to issue a fiat" currency.
The Sub Treasures and the Clearing
House certificates. differ in seven
| points, one of these is unimportant, on
four Of these the Sub Treasures are
better, and on one the certificates are
better, and on n both are vicious,
1. The Sub Treasures were to issue
currency for eighty per cent. of the
value Of the products deposited, the
New York Clearing House issues Ger.
tidcates for only seventy five per cent.
of the value Of the deposited securities.
This difference Of five per cent. seems
to us a matter of little Importance.
2 The securities on which the Sub.
Treasures were to issue currency are
staple products, as cotton, wheat, etc,
The Clearing House issues currency On
promise to pay money. The actual
possession of the staples, which are
indispensable to the industry and life
| of the world, seems a better security
than mere promises to pay money.
3. The Sub Treasures were to receive
interest for their currency, the Clear
ing House receives none. The eXaCti0n
and payment OF interest is a security
| against a redundant currency. In this
respect again the bankers are less pru'
dent than the farmers.
4. The Sub Treasures were to be per.
manent, the Clearing House certificates
are merely a temporary expedient,
But their existence proves that some
measure to regulate the currency IS
needed. The Alliance on this point
| also is wiser than the Clearing House.
5. The Sub-Treasury currency would
be under governmental control; the
certificates are under private control
There are so many personal and selfish
considerations connected with the eI'
pansion and contraction of the cur
rency, that the control of it's volume,
when control is necessary, should be
lodged in the hands of the government
The farmers here again are wiser than
the bankers.
6. The Treasury currency was
to be legal tender. We doubt whether
anything but gold or silver should be
legal tender. In this respect the Clear
ing House seems to us better than the
Sub-Treasury.
Z. Both plans were intended to help
particular classes. TheSub TREASURES
were to help farmers, and the Clearing
House certiic ties are intended to help
the bankers. Both are vicious IN this
respect.
The public warehouses now in use1
France and proposed by the Patr!@
are free from all defects. They aret0
all who own staple goods, would II.
volve no expense and little risk to t9e
government, and would Automatically
regulate the volume of the currency