The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-05-10
A NEW MONETARY SYSTEM.

congressman Wot00n'o Sub-Tfoo1uYy Bill
II On6 Step in tho Desired Direction.
Tom Watson, the peoples friend and
statesman, has prepared sub-treas-
ury bill, the pith of which the National
Watchman gives in the following lam
guage: Fl
/. It limits the amount of money to
be advanced to one hundred million
dollars.
2. 1t limits the products to be stored
to cotton and wheat.
3. It accepts the warehouses and.
elevators of private individuals and
averts the necessity of the government
going to that expense.
4. 1t does away with the great num-
Der of salaried officers required in the
old sub-treasury bill Under Mr.. Wat
sons bill there is only one national .of-
fcer and one state inspector for each
state. No other salaries than these are
paid by the government
S. Mr. Watson's bill makes no change
in business methods. The factors and
the elevator men become deputies by
qualifying themselves. The qualifica-
ton is simple-taking oath and giving
bond. Anybody who has warehouse
or who will build one and who will
give bond and take the oath, can be-
come deputy.
6. 1t gives no monopoly to anybody.
If any factor should become oppressive
in his charges others would qualify and
thus correct the evil.
z. It knocks the Spectator out. No
man can, by successive deposits and by
successive loans, get corner on the
market. Only two loans shall be had
by any one person in twelve months.
8. Fraud is made we'll nigh impossi-
BILE. Not only do we have the three
bonds of three different officials to
guard the transaction, but we have Sc
we're penalties on the criminal side of
the court. Also, the details are so ar
ranged that it would require the collu-
sion of three different persons with
opposing interests) to effect fraudu-
lent loan.
9. The rate of interest is low enough
to be an immense benefit to the people
and high enough to be an immense
benefit to the government.
10. Putting the financial part of this
plan in the post Office department is
most capital idea. twill give a timely
addition to the income of thousands
of hard-worked country postmasters
and yet will not cost Uncle Sam dol
lar. The farmers pay it out of the four
per cent. interest.
II. 1t provides a system of vouchers
SO simple that child could keep the
books and yet SO perfect that crooked
ness could instantly be detected by a
comparison between one office and an
other.
IL. 1t will help the entire business
world by prescribing uniform CLASH
fication of grain and cotton for the
United States
13. Mr.. Watson's plan for issuing, dis
tributing and retiring the treasury
notes makes this currency strictly fexi-
]ble-going out when enormous bullzs of
cotton and wheat are thrown on the
market, and coming in when the undue
pressure is relieved. This is the very
essence of the original sub-treasury
plan.
IA. Each dollar Of these treasury
notes SO issued. is not only upheld by
their legal tender quality and by the
credit of the government, but also by
an irOn-clad grip on cotton and wheat
(duly warehoused and insured) to the
value of that dollar and some thirty
three cents besides. Each greenback
now afoat has nothing to uphold it
save the fat of the government, except
ing the 800, 900, 900 in gold for the $685.
100000 in paper. We propose similar
fat of the government and also $685.
900, 900 in the two staple products of the
world for our 500, 600, 900 in paper.
Is. Every town, village and rural
community would soon begin to receive
the benefit of the free delivery of mails
from the surplus revenue of this depart
ment. No man can exaggerate the
blessings this would bring to our peo-
pie in the way of educating, refining
and Outstanding influences of books,
magazines and newspapers. The great
cities now have the mails delivered free
at the door of the citizen and at the ex-
pense of the government.
We propose to give the country
towns, villages and country neighbor-
hoods the benefit of the same system
paid for by these country people them
selves in the four per cent. interest on
the loans. Missouri State Union.
claim the credit of being the first to
advocate the adoption of the plan out
lined in the bill formulated by Mr..
Watson. In 1891 I pointed out that
Missouri. with its grain warehouse bill,
had all the machinery necessary to the
operation of the sub-treasury plan, ex-
cept the United States postal banks to
furnish the money.
In January 1892, published the fol-
lowing platform as good one to go in
to q campaign upon: f'
l. (a) The right to make and issue money Is q
sovereign power to be maintained by the people
for the common benefit: hence We demand the
abolition Of the national banks, and as Q substi-
tute for national bank notes We demand that
legal tender treasury bills be issued In such
volume as may be demanded, not to exceed tho
present assessed value Of improved, productive
real estate such bills to be legal tender In pay.
ment Of all debts, public and private. and when
demanded by the people to DO issued to them 1t
. rate Of tax not to exceed two per cent. per
annum upon improved, productive real estate,
in sums not to exceed the present assessed
value Of such real estate.
(b) We further demand the est4bl ishment Of
United States postal banks In the cities and
principal towns, which said banks shall b