The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-01-30
GOVERNMENT N
What Are They For The Sub-Teasury
Pian--It Would Save a Bond Issue.
Mr.. OLIYE, IN. O.

Mt. OLIVE, N. @.
Mr.. EDIToR:-The fact that the con
dition of the National Treasury is such
as to require a recommendation by the
Secretary to borrow 5000, 600, 900 TO de
fray current expenses, is of itself sum
cient to disgust every patriotic Ameri
can with the management Of the public
affairs Of our country.
Only a short time ago President
Cleveland proclaimed ''umiUersaI peace
and unparalleled prosperity" Why,
then, is it that the government is In
need of this extraordinary amount so
soon?
We have had no national disaster.
We have undertaken no new enterprise
to require this ex ra outlay which the
Secretary needs.
But we will interrogate no further.
The Secretary says he needs that
amount. So taking it as a fact that he
needs that amount, we will proceed to
notice the plan by which he proposes
to secure the money and how the plan
will affect the taxes at large. These
bonds would draw at least 4 per cent.
which would entail an annual tax of
SIS, 600, 900 to pay interest on the same.
AS to the time the bonds and interest
would have to run it is difficult to de-
termine.
If in time of profound peace and
great prosperityO we are unable to
meet current expenses, how can we
hope to pay an additional debt, par
ticularly so when our annual expenses
are increasing each year out of all pro-
portion to our ability to pay9 Surely
wise and conscientious statesmen can
not recommend nor endorse such a
policy.
can see but one way by which we
may hope to meet this indebtedness,
and that is by cutting down expenses.
Then would it not be better to begin to
curtail at once and thus save this extra
and hopeless burden to our tax-payersG
But suppose our National Govern
ment really needs and must have $780,
600, 900. Is there nc other or better
way to secure this money than by issu
ing bonds and borrowing of foreign
capitalists and money kings-men who
have destroyed half of our circulating
medium and cornered on the balance
Of our money commodity-men who
have absorbed our public revenues for
the past 81 years, and now have their
covetous fingers on the purse strings
of our national treasury?
1 ask, is there no better plane Is
this the best way, all things considered,
to secure the money! I, for one, do
not think it is.
l wish here to introduce a plan, for
INFLATED by the honest yeomanry of
our country, by which u govern
ment could avoid this debt, obtain the
money and secure untold advantages
directly to our farmers. and indirectly
to every class of our citizens and tax
payers.
The plan is known as the Sub-Treas
ury, formulated and recommended by
the Farmers Alliance and Industrial
Union of America. Suppose the South
ern farmers cotton crop of 1000, 900
bales had been warehoused and four
fifths, 80 per cent, of it's market value
been issued in treasury notes direct to
the farmers at a rate of 2 per cent, as
proposed in the plan.
Now let lis see. The present crop of
cotton averaged about z cents a pound
to the producer. Seven million bales
weighing SOC pounds each at $35 per
bale would amount to $245, 0OO, 600.
Eighty per cent. of that amount, or
1896 900. 900, would be issued direct to
the farmers, and through them i5
would pass to merchants, m~anufactur-
ers, mechanics, doctors, lawyers,
laborers, preachers, school teachers
and others, for the farmer has to deal
with all these classes. And through
these varied classes of our people these
notes would again pass back to the
National Treasury by way of taxes, in
ternal revenues, etc. The Secretary of
the Treasury could use these notes in
off pensions, employees, Off
Gals, Congressman and others. Now
while these treasury notes were taking
this circuit, the farmers cotton being
held off the market-cornered, if you
please-the price would reasonably ad-
vance to 9 cents per pound, and we a
see no reason why it should not com
mand 123 cents. But suppose we put
the price at 10 cents, which is only a
small profit over cost of production,