The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1913-08-28
The Grange and the
Farmers Problems
EMERGENCY CURRENCY
By *. L. Loueks

ent federal administration has recog-
nized the very important economic
fact of the need of an emergency cur
rency to assist in moving and market
ing the crops Of the farmers OF the
west and south. IL the farmers will
organize to press this advantage We
will soon secur results, but not other
wise.
Although agriculture is our basic in
dustry, and the one upon which all
others depend, the organized farmers
have never asked, nor do they now
ask for any special legislation. They
are entitled to, and should insist on
as much consideration as any other
industry. II to help move the crops
the federal government Is prepared,
In order to avoid a panic, to issue an
emergency currency, to meet this alb
normal demand, up to the amount of
$5OO,OOO,OOO at the rate Of two per
cent per annum, why not issue it so
that 1t goes to the source of the de-
mand more directly?
Why not follow the good example of
Germany and France?
Instead Of the bank of Prussia, or
the bank of France, use the state as
the medium. State bonds will be ac-
cepted as security for the present pro-
posed emergency currency, and ii good
when presented by a bank should be
good when presented by the state.
That there is need of an emergency
currency for the purpose of moving
and marketing our crops Is not a new
theory. 1t was recognized by the or
ganized farmers of the nation, and a
bill submitted to congress in 1891
known as the Sub-treasury bill provid-
ing for an automatic, emergency cur
rency for this very purpose. In the
new Monetary system published by
me in 1892 I quote from chapter XII,
"A Flexible Currency" as follows:
Our plan is to base it (energy cur
rency) on actual wealth, commodity
value-the non-perishable products of
labor. AS wheat and cotton are the
great disturbing factors, as previously
shown, We believe that money (wheat
and cotton certificates) issued on
these products In sufficient volume to
move them, is the best solution Of the
problem yet offered. It would relieve
manufacturers and business men from
the strain put on them every autumn
because of the competition forced upon
them to retain the money in their
business, that the farmers must have
to exchange the product of their labor
for what they need. This competition
is disastrous, both to the farmer and
business interests. The business men
need the money and the farmers must
have 1t. Whichever pays most for it
cur 1t. At the time referred to by
Secretary Window the competition
was very keen. On the 2Sth of August
interest ran up to $50 per cent per
annum in Wall Street and stocks fell
in value until q panic was barely avert
ed. Wheat dropped 80 cents per
bushel. again quoting from Win
DOM: These disasters will always
come when unusual activity in bust
ness caused an abnormal demand for
money. as in autumn, for the moving
OF our immense crops. When the ma
ton should be most prosperous, be-
cause OF the vast increase in wealth
produced by labor. disaster Is threaten
ed because OF our present cast iron
system of currency"
1t Is not possible to frame a stronger
indictment against the present system.
The larger the volume Of wealth pro-
duced, the greater the danger Of finan-
cial disaster. The greater the bless
ing the greater the curse. When the
Lord sends sunshine and rain in sea-
son, and labor is extra diligent, garner
ing an enormous harvest that should
bring prosperity, not only to the pro-
Queer but to all other classes in the
nation there will always be grave
danger at those times under any cast
iron system OF finance such as we now
have" We have had several near
panics since then, and q real panic In
1867. Always In autumn, when there
was an abnormal demand for money
to move the crop. The threat of "Haa-
mans Gibbet." undoubtedly averted a
panic this year.
The effect OF these panics. or near
panics on the farmer 10 seldom dis
GUESSED. How was It in 1907? + had q
large crop OF barley and was market
ing four loads : day at 80 cents and
1over per bushel.
W3thout warning the price dropped
TO Is cents. and did not recover.
The same Wa practically true OF
'oSher farm products. No other indus,
ny VA hit % bard "a agriculture. but
the sympathy of ths governments was
IN with Wall Street s~peculstors WHO
made many millionU ont ~ 4. Had Ne