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THE SUB-TREASURY. AN UNBIASED ANALYSIS OF THE BILL By a Succesfn1 Business Man Who Is a Financial Authority-A Strong Docu ment Upon an Important Subject. The effort to blittle the subtreasury plan pre sented by the F..rmers' Alliance has failed. No nie.-ure ha, in years contianled so much atten tion in thi tate. In spite of the denunciation of those wih, pronounce it undemocratic class legis lation, wild, i:ipracticable, revolutionary and cal culated it passed to debase the currency, and the ridiculeo those who declare they want no inmoney based on "*-unpkins and corn shucks," it has won the support 01 the fariners to a remarkable de gree. Neither denuniciLtion nor ridicule has weaki ned its sulrters. No mere absurd and ill-titued prov,-i, i cot0d make such he!.td way. Tne ncery reclption of this measure e in a high degree that the con ditions surrounding the Iarming class <emand itnprovemneit. But we.have nolnted for evidence on this subject. ENILS OF CONTRACTION. That the bu-iness of the whole country Is suffering through the contraction of the currency is admitted by all parties. The re cent silver egislation is the direct outgrowth of this adiris-ion. Froni the very nature of their business tii contraction of the currencv bers with spelial weiai:t upon the fariwnrs. The leading products o1 their labor are harvested dur ing a 1ew months of the year, while the whole year Is necessary to their consmiption. The year's sup - p:y of the.r pritduets calot be drawn out day after day, as with the manufacturer, but they must prepare ai sow and cultivate and harvest. and then force their crops upon the markets of the country at a tiue when evt ry line of bu-mess, sutimulated'bv the marketing of these very crops, is most a'etive. Thus the great bulk of their crops, gatliered within three or four months, must b sold by the farmers. owing to the neces sities ot their conditionts, at a time when money is tiost in deimani, to those who are able to <'arry them until required for actual consuliptiol. The result is a string encv in the nmonev market, high rates of rates of interest and a corresponding depression in the price of the productions of the Jartm and of nearly all classes of securities. in the nid-t of an er.. oh great prosperity we have seen imionev lend ing within the last thirty days, in the'city of New York. the finaicial center of the country, at the rete or 188 per cent per annuni. The couiitrv has I een saved Irom a panic, and thousands o1 honest business men fron baimk rupt-y. only by the secretary of the treasury *h eriig to pay or .10.'0.oiul of 4i. per cent bonds, prine...l and interest to date of maturity, more th.n twelve months belore they fall due, and by ofering to prepay a year a in terest 'on all the pubde debt, aggregating m,.re than $.000Kt,((10. Several times durin the past three years the secretary of the treasury ha- only prevented a panic by the purchase of gov, rmnent i:onds at enorious prenmums. Think 01 i . more than .50.0(ww.(XK), in round figures, of the lpeop:e's money have been paid as premiums on 4 and 42, per cent bonds, and this paynment rendered itecessary by the scarcity of money, in ord, r to prevent lankrupotcy! To meet the evil. -ro,4n which thevsuffer in com mon with all produce rs. the fariers have pre sented a rmedv. Neither rd.cule nor denuncia tion is the proper weapon tor its disciission, but a careful. patient and Thorough investigation, a caln and unprejudiced study. As I understand it. the farmers - are allied to no spe cial details; they want a flexible cur rency. issued by the federal governiieit, that can be made to inm-t the inmcreaed demands of busi ness mue d:rectly to the great staple crops being forced upon the mar-et within a short period of tinie. Tiiss is the great principle for which they contend. Thie iethod they suggest for" carrying this ptinciple iitto prac tice, is to ba-e any increased issue of currency tipoir the great stapie crops, and to issue it, not ar: r i:y by the coveintuent, bat onlv upon the demand of th-e who wdi; deposit aiple security for it. They simiply demanid a safe. staile and flexible currency. I that wild. or visionary, or impracticable'? The umetihod by which this cur rency shall be issued, the way in which it shiall be secuired, they have ex pr-s-ly declared a willing me.s to leave to the best sense of the whole couin trv. Is that extreme, or radical, or undemocratic? 'Now, as the evils of contraction eo-nfessedly exist, as every intelligent nian admite ik m. and every business suffers froim them. the I._-? of wis dom is to stop denunciation and ridicule, to quit carp.ng over and criticising ucre details, and to un:te ail classes with the alliance in a cordial eilort to provide a remiedy. As the tight against the tariers' tea:sure has been directed chieily against the methods they have suggested, I will I pass to their consideration immediately. ierely noting that I will reoly later to the arguments again't the principle of flexibility. 'hhe important questions which underly the ni tiods proposed are: THE PRINCIPLE OF THE S'BTREASURY PLAN. 1. Can a safe, sound and flexible currency, which will readily pmass on a parity with gold, be based upon the great staple crops? 2. Is it possible to devise a method for the is su nce of this currency that will be constitutional aini in conisonance with the genius and spirit oi our tree and dlemocratic institutions, which are opposed to all forms of paternal goverinment, and to an increase beyond due limits of federal patronage? h'ause atnd rerlect tipon these propositions.i I these iietlmods propom-ed by the farmiers cannot be maade to conforni iuliy to thenm, they should not lbe ado~pte d; if they can, do they not deserve. and shou~ilm they not receive, the support of all classes~? At the fore-lront of the argunment it is de man ded that the proposed currency must be sound aid stabile, and that it shall pass at all times on a goid basis; this is lundamoental. The biody politic in.hors a depreciated currencey. Business con ge-t- beneath its blightiing inuhuence, aiid serious tuiunciai catastrophes niust follow in its baneful wamke. No paper iimney can permianeiitly perform usm iiul service in the present condition of com mntrce and finance throughout the world that does not pass readily on a parity with gold. if, theref ore, it can be shown that money based upon thi great staple cropms will not so piass, there is no lutum r roomn for argunment, and the whole fabric nilist fill; there would be no use to consider ways aiid mieans5, tovernnent warehouses and fed er, patronuige. The whole fabric being viciously de. etive, it wouldamake no difference how simple were the umeans of its execution, they ought not to . e set in iimotioni. But, on the contrary, if it caii lie shown that a sound and stable currency can lbe biased upon the great crops which will readii-y pas-s on a parity wi th gold, then we shomild louna fir tue mneans by which it might be safely aiim wi-c y issued, even if tiue search were arduous aiim t'- best miethods difficult to ascertain. It w-. 11 be poor statesmanship to de-, noum-s a whole measure, the correctness of; who- painciles were amhuitted. simply because the ma .i suggested for its executioii were clumisy or mde etive. Thie wisdom and correctness of the prmteple once adltmitted, it becomes the duty, of tie b' .:.i atonr tio finid sonme proper iiiode by which it may be carried out. During this part of the disen sion, therefore, I ask my readers to dismiss ent~rely all iuestions as to whether or not the plan prome'ud by the allianice is practical, but simply to ,deteriniine whether a sound currency can be ba-,d on the great staple crops. If they can be coiivined of this proposition. the task of showing how it can be issued is easy. The iain question, therefore, to repeat myself, is: CA N A PAPERt cURRENCY BAsED UPON TH E GREAT STTPLE Citol5 B i sSUED) BY THE GOVERNMENT That w~ili readtily pass on a parity with gold'? To deteriiiine this we must consider the essent ial ehenients of paper umoney. Every mine now concedes tlhat it is not only iiiore convenient than 'i. pc inbt in imnodern tinies absolutely nec..-sry :or the conduct of business. A great part mi tae inioney in the country today, exclusive of gomd and -ilver cert ficates, consists of paper, ano thme sdver certificate passes more readhily than the si.vert dollar. There has been since 1878, in roiinii ligures, $3m.mm00.000 treasury notes in cir cuiation. and during thuit whole period they havc readmy passed on the gold basis. Ini adiditioni, there are millions of national baiik notes, which in the final analysis, are chitiy baseid on the governmnent's promiise to) pay ; and these, to,,. readily pass on a piarity with gold. it is true that beind the nationau bank notes stands the bank issuing them and the govermiiett bmonmls deposited for their redenptiomn, tmt behind th- treasury notes stands siiply the plighted Ia i bmf the government to pay ini coin on deiand, and the cin reserved in the treasury. Why do these n tens pass on a parity with gold'? F'irst, because the public has confidei"-e in thme gov erninenit- :lbility to redeeiin then, in c'n af t any timme; sem-ond, because they are receivale 10r pu liec doe's. ixcept duties on imports, and arc a he gal tent e -. fr priv'ate debts. The annuam <1enanuds (ii mi .. oernient for wehich they' amre remir tb ' at liar with gold are very great. Thi y uominme ini time hi ghiest dere ie I e e-etntialh eleumiettspubtmllic cinnidence ini t. e:r convertability into specie, aind receiva bilhty at pa wvith gold in mayment of enormious aimmima dumeis. Time fir-t elemiemnt of stremngth is diii tes iimimonded ~in a large mieasure uponm thme -cecimuit. ut tm w'hit extent could they' lbe im cr.ased-: Wou(ild an arbitrary inireaise o1 One tihiui,. id niiiionis so shmake pliic cionmid ece and .icl pubilic demiands that they would mall bielow m'iid'" 4 rtainly there is sioine point at wi i v'iiu ld he time ease. If this i- ':. ican it be said tht .u.i0,(5* --r Cen.um 00um womuld nimt exceed pubimamnd anti qhike pblic conitidence' If there is a poit i eymond whichm public coid ence andi thei mdetmnd- of buisiniessmewould miot go. howm~ is ti-at plint toi he ascertained-i? hler lis the great es't dumituty ini time issue of piller Itmoney. shiouth lthe :.s irnIwnt arbitrardyl is-ue so miany mi I ii , *: t t-trea ury itites andi tru it tom ituk n:. ti excm the :eimindm or -liiu I it idevi-m some pI~in l;v wiinii :he -upp.ly cani be re:.u!:tedh by the dhm nt'amp: Th le latter is undmoubtImedhly mthe corirec-t met lio. -'('urrenmcy." says de'vmns, ini hi woi k mon "Mimnev :ial thle .\echanism or E-'eanige,' "muitst to the i ri e tioni of the iaws of suilpty anti ie inaand." [P'age 237]. In this view Johno C. tial elements of paper money were never miore clearly stated than by him in his speech in 1 on the bill to estabhlisn the subtreasury. He said: "On what, then, ought a paper currency to rest' I would say oin demand and supply -imply, which regulates the value of everythiini else-the constant demand which the governilient has on the commumlitity for its necessary supplies. A nediun resting ioi this demand, which simplV obiigates the govern ni-nt to receive it in all of its dues, to the exclus ion of everything else. except gold and silver, and which shall be optional with those who have de mands on the government to receive or not, would, it seems to me, be as -table in its value as those metals thenselves, and be as little liable to alise a, the power of coiining. It would contain within itselt a sef-re-gulating power. It could only be inslevd to tho.-e who had claims on the govern meint and to tho-e only with their consent; and, of coursi, only at or above par with gold and silver. which would be its habitual state; for, to far as the governmeit is concerned, it would he equal in every respect to gold and silver, and superior it niany, particularly in regulat:ng the diu-tanc exchanges of the couiitry." PAPER cURRENcY REPREsENTS DISTRInITtvE MERciHANDSE. An important fact that is frequently overlooked is that paper currency. when sound and stable, must in its fi-al ::r- y r:'pr nt the distribu tion of nercaliniime. 'Mr. Poor, in his work, 1 er. it Lvaw. and im-tory." states this prop osition most adiiirably. The fact is so important 1 and Poor is so cl-ar and forcible on the pont, that - I quote from him at some length, even at the risk I of being tedious. In discussing the operation of a bank in the conduct of its business and the is- I suance of its notes, lie says: "The pivot upon which all these onerations turn is merchandise. That provided. the instrumevnts which represent I it. and which entitle their holder to a corresponding aiiount of the saie value, or 1 to the proceeds of the s:ame, and which. by their transier. transfer that whicl they repreent, are paler moneT currency. As soon as they are is- t sued their mioveiient edinmences automatically in their appropriate spheres. and continues until they have accompilihed their c:rcuit and work. It i. merchandise that call- thei into being; it is I merchandise that giv-s thiem their value; it is i merchaniise that igive- thim their impulse. and it I is merchandise th. by it' pureha- lorconsimp 1 tion, returns thi-i to-'ho c who is-te them. nit to ; be reissued. but .n akini. new loan-. So far as 1 nierchandise is proviled, they proiced noiselessly 1 and beneficently In their proper orbits. So far as 1 it is not provtied, their cou -e isaserratc and de- I structive as would be that of the planets without the guidance and cont-l of that central mass around which they now so hariilesslv tiove. e-A1l local currencies.thireiore, are i--ie .noton gold and silver coin. hut on merchandise, for which thev serve i the place of coin, as instru- 1 ilieits of di..trib.utini. Cuini is :tselt mioiney, And i needs no viibol for its transfer or di-trihution. I Except a siall quantity by w.ay of change. the I precious Metals are no lone-zr used as curri ncV. They :ire held antd used clii ly as reserves for the 1 iseliarge of suhil p:liper curr. ;i-s a' :.re not dis- i charged biy er h:tse in the:aner d-scrilied." I As long a- tie notes isu d by the bank repre sented merhanie. he show tiat they would pIs on t piarity ith] specie : "The holders of imer chandise, tuer-er., wo)uld receive theim equally with coin in its sale. as they would pay their bills eually with coin. As they woul 1c accepted in the saie of ireliandi c equally with coin, they would b-e taken 1-v thi pubic. the consuierz. of 1 mer.-hadise. eqitally with coin. As the oji..ect of 1 all curiencies, no matt-r toe forui or a -terial of I wh:ch they may be c.-ili-osed, is to reach iv their I exchange -Oei other article or artie-e, th. hod- I ers of the note- and credits of a liank wouil iave t no adequate motive to exchanre, nor vould theiy exchange them for coin to Ire used a- curr niy. vo long as they would i eriort. *- curreiicy ali tle functions of coin. :roduticer- in-equientiy. in whose favor the hills were licouetnted, wouli. fro:ni tile greater convidiene- .i their us, preier to re ceive in their di-counit. liotes ald credit- to coin, as they would pay ' them out equally .wyth coin il I the viurchase or laior and iatirial. i the pro:e- I cuti-in of their imidiistries, to the very parties who t would lie the consunersof the inreh-n;lise which o they had produced aid pit upon ti- mnarket." Again, alter diseussi:ig ,he caise= of the failure f of all banks which lave i-isued i-rreney based t upon real estate.hle says: -rromi wiatt has ire ceded, the reason of tlt- failure of a!0! ban:s, tic I capital or recerves of which have con,i -ted or real I estate or securities, will have been inade su1i ciently evident. All curriecies. to be accepted as t such. must lie iinstrunemts for represent:ng and i serving for the dt-:ribiition of nercha-lioe. I tht y will not secure to their owner ierchandise. t tie .-euvalent in value to coin. they will always be iiiediately drawn. or attenprteil to be drawn. in coin. The hoider it. a note issuedi by a real estate b.iik does not ,ant that which it represeits. but iier- < candise. or in the ab.,elnee of mrcland-e. coil. Such a bank has neitiher. Shotd it !-(e, te d - count nothing ut lusiiess paper, imi-i ssible supposition klor a! such bank; *ri- -ot upt to .-up ily the lack of liii-ss paler, that is, of mer- t chandir-e. th-- basis of buime-. laper). no one A would take its notes and cr-t- to any conidr- I able exten', as it would lie . ni by al ihlt no t proper provision had bet-n n:1l to iarry lorwar:1d its operations or to meet the : ises to whilh it ' would be subjected. Such i-anks therclore. t from the very nature of things, have never t been able to make even the fir.-t -ue-sil start. 1 The moment they have at-emlit -d to i-une noi-tes t and credits as currency, tih-se b:ive 'dwiys Le ccl presented for immllediate reilempton inl oim. As they can pay neither mercha::iie not coin, they ae no other alternative b:ut to go mntl ilie diae liquidation..1 "That a curri-ncv may at all times be co-inverti- 1 ble, the n:eans for itr redheinioni liusit a.lway nie t provided pirevi-us to Its issue, oit by tlii iank, t but byv the pii ic, the -riodui-r:- oh melr hants,. I With'such priovision, the ciurrenry irom~i the 111-4 ment of its issue would take care of itself. Thet attemplt to -aake -lich proiion a~i:lte-r issue woubil I be certain to deheat itself. Whlen mierchianise- is provided, the iiecesities of cionuiers comel i them to4 purcha-e It. pnic liy piece. b r consmup. tion. Their nece--irtwoin purchases wiil have the effect to maintaini it- prce so ias to reurder at dequate to the disc-harie oi the currenicy issued gaistit. Butneither re.d st-rte nor secuirltlie aan be taken for consumpllltionl. piece by piece-; they must be sold in gross, or not at all." Real estatZe and secuirities, ii-: ally shows, can Ibe neither eaten, drunk nor worn, aiii cannot, there-t fore, form so safe or stabile a bia:-is tor currency ;as< :ierchandlse, which is daily'mu and ioriy distribted t throughout the country lot consumipt ton. ESSENTIALs OF soUND P-AI-ti-C e lRREYcY. Nowy, let us tirietly sumi up the essential elemencita of a sound piaper currency: 1. it must be backed by the public contidence that It is at all times conlvertible in specie or its equivalent. 2. To secure this cotidirence there must be sueii onstant puiblic demands for which it is receivable on a par with specie as will enaeble its protiiit onvertiility into specie, or its eqiiivale.nt. 3. To inure this, it-. viilute mullst be regulated by supply and demnand; and n 4. This can only be accomplished by nnking it the re-presenutati've iof the distributtin of mier chandise for consul:npitioin, which woulud prevenlt its volume from ever reaching a p-dnt bieyomiil which it could not I.e immhiediatiy conve-rt ed int"o specie or some necessary article of me-rch;.imiise on a specie basis. TREASURY N(OTEs sEeCRiED BY STAPLE cittPS. The plan of having the fedceral government issue treasury notesbased upon the great staple crops fully mecets these prereqmuisites to an increasedl issue or paper money. For every dollar of treasury notes to he issued by the governiient, the farniers propiose, ini some form, to pledge their cotton or wheat to the extent of only 80 per cent of its actutal miarket value. This creates a 1ebit on these staple crops, the" whole, or nearly the whole o1 which is coinuined within each y'ear. For the payment oif tis debit the treasury 'notes isnued by~ the giovernmnent would be accepted biy the gove-rnmen-t in a parity with gold. The iiotes which would lbe i.suied upon the cropis could be made simiilar in all re s~ects to the present treasnry motecs. They would performn all the functions pierormed by the pre-.ent trea ury notes, would be receivable for the samie cla-ss o1 pubie~ and pri- 1 vate dues, with the additional strength that. by their very issuance, another use for thenm wouildl have hi-en created, to wiit: the piayiemnt oif the debt created by their iue. Noiw. rte great staple rops are sold iipo n a gold basI-is. Whleat anid cotton spiecially form our i inig artcles it exhport; their I ruc is tixed on atio i ba is in Liverpool and Lodon, aiid. thie-refore, a. the produit on which the treaesutry note' wouti ei i-ssued. wiiould have to be sld tin a gild bai. Th~ e notes ineil -in them, whinu wouild lie acce-pteid by thle g..-rinenmt oni a parity with go ld. would nece-sarils )iar iin' a gold Liasis. Ainami, as the-ir issuanice woii not Cicarbi r~ry oni the p-art 01 the gove-rnmient, miit ionly upon leiand and tue piedge of tile cropi ino noite wiould lass (rut 01 the treasury exceplt irn a gold ha -is. tf it could be conceiveid that tntwse not-s would de preciate at all, their depreciationl would nlecessar xlv occur at the pioit of time when mio.-t of them were outstanding. aiid as thlere wouldh be- a graidu-d i ntrationl ol the ciirrenicy as the yearly conup tion oif the cr405 rook place, noi manii wouldr ie tol enough to take freon the goiverilmit on hiis crop a 'depri-ciated currenicy-a doil:r thietc wol n~tot pass on a parity with goiid-when~ his< ittin or wht-at ia ; ti e stld in the miar:xets oh the- o-rid on a giobl biasis, andi the iteblt lie owed o i te gov'ermmetnt paid after the vi lnme iof cur- 1 ri-net- iutstammdiniz nadl bieen cintracte-d by thei :onsmption of thle very crops theiielves lirON AND) wilEAT 5AF~ER THlAN SILvERt Which is die saufer tumrrency, that biased upont otton and wiheat, which must he consumed within a year, oii a gold basis, to onty 80 per cent of their value, or that based upon silver, pur chased in the open miarket at the fixed rate ofi tiot 50.4iii,iu annuallhy, aiid stored ini the tra-urv. whlere it call tie mneither consumied nrit istibiltei-: It 1s clear that ini the case of the :irecy biased uploni cit toni or wiheat. an eqtuiva lnt ini gold 'it the currencry it-niI issued-i iin the t wijieat or corttoni wouiild itrw brack inimo the treasulryv as the wt-eat andi cittonl were inisimmied. andit tat grihual e-xnaniiionl and -i conrmition woiild result ; while in the case of silver, an arbritrary : i-xpasi -n takes prlace yearly while the com- ' iody acetiiulatesin the treas- 1 rv. At the end of a decade there will be I outstandin about $700,00,00 onf miyer certin. - cates based upon a commodity whose price has been advanced and regulated by the government' own purchase's, and which. if the govern nient undertook to sell, would enorniously dlepreciate. In the one case the holdt'r of the iroverninwnt's note would know that within a short time co'd or its equivalent would pass into t!- tre:.,iirv; in the other, he would know th- ill r - was:c commodty steadily acemulating t.- n treasury. which, by the very law under which the noe lhe held w is issued, was scarcelv any i:rther alvanced towards consump tion or distribution th::n it was when uninined in the western iii:3. It ma:iy lbe safely assumed that -no p:eper cur renev in the world would he more stable. more sound, er more certain to pas oin a parity with spiecie. than th- treasury note's o the Uniteil States goverument based wl on the great stale; crops, provided the imethodi ot their issuarce was properly hedged aleut and protected. it is iupossib!e to present all the aruriinents iml uplpolrt of tlik poition in an article nece S:Lrilv limited in epace, but before pa-Aing: from this branch of the -ubject under dis--us-ion, there is one other point to which attention should le called. As has been before stated, more than $3h,000,000 of treasury notes now pass readily at par witu gold, with nothing behint' them hut the govtern nient's prmise to pay. Why then wotild not ad ditional notes of the saine eharacter. secured on the gr-e crops, representing their de'triiitioin ror e-n a .:ption,:md issued only tO theC who ac epteu e ,eei vol utntarily oil the g-4l basis, coni Anue to pass readily on a parity with gold'? That ninent Georgian. .ludge Crisp, who hasso a.y ,epresented the state in congre-S, n his letter to the fariners on the stil :reasurv plan. deciared Ihim-elf ulqualifiedly n favoi oi ain increase of trea-ury notes. To this ositioin the democratic leaders have been com nitted for more than twenty Veat:. How is it mre conservative and moire safe to issue these ;reasury notes arbitrarily, and without any se urity ptedged for their payment. than it is to ssue them voluntarily on demtand with the great taple crops pledged for their paymcut' FLEXILE cURRENtCV DESIRED. But it has 1en contented that flexibility in the otiie ef currency wiuld tend to distire butsi less interests ;id render uncei'rtamn I hu1,;mess obli :ations . The1-re is an alparent pciilility il tlis irgumient. But it is based i a ieuntonception. mld evidencs great i.:norance. of the real -icndl ions suerrstinsin c m-ree. Net ing wul end to rener prices so stable or busine oliga ions so sure, as the certainty that. the supply of noney woiuld x"''t.y corre-pond at all times to he volume and ri ejuireients of trade. if it -ere possible t. perfect a svstlm o tinance mi:ei.- whh- this would ble le _ase, the co'rt lof imioey. iiitcre!st. would alway! em:ii the ain. , a' -- t co import::nt eleunients of mnertainty po- le strint 'ency in the money i.-rket anid v::rying rat-, of intereSt-woud tie -eeetd froim ceium r:ev. St.il-ility in ;rics, ;erefore, is prmeetv--d iy -I titv in the 'eolumit: Af eurrency, and n-1i by retildity, :hat allows Ier nO e p lan ilian cointractions in teeordance with the demnd oftell' trade. I reco ize that it is impoeibe t-, - adjutt the ldelicate intncial m-,ery if a great gvernilment thLt t will work n:omii ti alvly in ex:act relatii- to the equireitnn- w: cemnei-r, tlbt i do insist that it the duty ei the geoveritOent te perfect the ma 4hiierv :e ti:lL it Imcay at least allroxf el-I aipreleeicih the desired resuit. To tta-k the ih-xibility of the I-roposed arreiney, i to ;eta-k the propoteition that the iuance oi p. Ii airt it-y hoiuld be regulated 'v the laws oW inp nle id- meiand. This is to Iy 'i tlit face of the best wiiers ein the subiject and ie i-r-t principlc if ciinon nse. The -trong ,t artuent. .t ita been ii ade ag;ist p;ie-r ione is. a t ted ley .lcvons. "the impeesibility 11 va'irvinr t- ateoune' in acceordanceawith the r-e iuiri.enzi - t.:.lI." Specie, it ias leeu argued, iuid be caled Ireoi lone pertioen eet the ;unil to:.n :-r in aerdance witli the deiand .:rne .: p -i-er c-ir:-ulatincg oly in ionce eetuntry voli d net yit*te i r--ecrve- 'tipli in other por oni 01 the w(-.! te dr:aw etpin inl ierioids o ac var or ke n. etiet jetr investiment m ;criods if ep re- t. T'e*e.xiliity of' the proposed turr, iv i- ti - r-st .rgeinient tli.it cali le dvane de in iie f-laver. 'ie di:enger ari:,es, not ri it tiexibI:te. but rit'l-cue it may not be exibie eogieti i m t h et-l icelemti:itds 0t tr-de in ie spor;ng wievi tile gre.it staie croles lave I eer lar-'evy cin timed. But when t is rt eeiem-.:red that tihere is in enormous el-i.nd upon tie entire currency of lie country d: I the fall month< when the r'pse -'e m mee ari - ted : that a greater volnie a is.ness is ne.essarily condiueted at that tinic hLi at any other in the a'-yr. aied that the Inn ey if tht!e country is e nori:eouly stpleinented under -reslent buestinces :ethldi by dratis, lids ef ex .::re end every torini of eoiiintercial er-dit, it vill i;e seen at 4en-i that the increase of currency uring this pecried 01 activity would take the lac eeof tie e.; v-t;ottr 14orims or credit, wniich now upt-menlit W v M.u:ie : Ivytey, and that, f lie iwiereast- i ecurrenty cctubl le iade to beair an pyeroxiieate rlat!.el tee the in,-reased volune of rade. evera ietri,-s in the whole country vtiutd lee' l--eiehed. Perhaps the mno-t miortatt'tt advantage to the coun rv woud ::ri e fromi the greater cheapness with wich the er-s gre:tt artieles of merchandise - re distibuted e o r cotsntiltiion. This advan ewoud pinetipaiy manitest itself in lessening he rate o' intere-st .nd in enhancing the price of he cros, it it would be a great error to suppeose it all bu-ne.- iiterest- would not also reap a ore~peendtn-g teniehit. i'Ti-n5s5INGO THE MARIKETS. The finaneitt repoert in TfilE ATLANTA CONsTI eieex foe we eie'ed..y, .ly :a!3dt, wahichi was cer diia'in t enot iteld~ ai an-ll arr'tontent in fav<,~r eel ie l:n:crs subltr.atury p-ii i. :::y- in di-scussing e linlanial situ .ltin int N: w ork: "'The heears vi beeni leee-i;. 'tit .ee , :he title. wheni eel, ill mn::ke sue-I di -I: .ti-- uponlt tile tinaenei:e re eouce, ofi the co emtry that there will C ileothing left in Newt York beanks with cihih to c'arriy een lull speteulation." In other nrd,, the i-ears were theni preparing to eze upone tile tihittness of the ioeya narielt iciet tee im::rket:ntg the cropes, to dee eress thteir pria a atent the hrice's eel all other se urites. Hieoa well th.-'y have succeeded has he'en ienltated byV tile dectline' in prices of nearly all ee urities 'awtl the adlvaitc ot interest to the rate The coneitractinn unei - tti'-.ih popeosed plan during he sperin mln' h< t ree:a the gradual ce11nenmptein i he't-l.iet'e. cr e wei ed be ttil mu hle's strm -lte :han the cell r e-'t ''ni 'vit-nt to the fail motenthis nder exis' n' t- :dt'ens. it wotiuld about celual lie le.ssening e.:::.nde. At the woreeet, it wituld 'a.'er tice per 0d eel contraetei comlparedt ith aveueeee eti tr~eele frome the fall to the sprtimt. verav hetsine's imant weeuid know that stringeincy 4untevdy iurin;;toe I al woeuld lee inipeossile: nel he wocuit am -etimiee. c-veni if there awas sonic eti'ctie'n durmgiii : a.- spring, cornpedlte witht the elme of curt' it--a' te..t c-aice litoe use ini the fal., :hat it woenie take lee at a timne when the lde, mi n-Is oh' business arc- leess thacn thea' are ini the BEST NlETiioD OF PERFEcTING BILL, The peropoesitio:: htavicntr been established that a atfe, seeuslll, andc stale cutrrencey that will pass on laity withi geeld, can be issued 01n the great ttie c-reops,: nd t:: tlexibility or elasticity in ie avoluntee of Lteturreincy ofi the country will en tee prinite' the stablility o-f prices anet wepel downe thie'irate ef interest. awe lease next to the :insiereatiten o: thie lest mtethod ofl accoetpi-hi ne this iiutch diesireed re'uit., it woeuld not beC dif icult to devi- a syste'n based on the line sug ested by the' Farmers' Alliance that eul re.ptire no largre expenditure of ovrnin..enit funds and nio great chlange in the eenit ime'tnitdc ofl conductinig butsines. It wouldl lee easy e'neetgh to permtit any responsi el e'cno.mvl tee e stabelish a waareouse, and to give >ned tee'the aou'ernenet tat it would issue no re eipt without havmng the product represented hby t actumilly in its possession. Th'e rovennment ~could appeoint an inspector, ust as it noaw apitis a governmeent :-auter for the boneldedl awarehiouses for whiskey, vhoe busiiness it weould lee toe verify the state icclt, mtade on thle lace ofl the warehouse receipet. lie imprpereln issuiance eel any receipt by the of ues ofl this bocndedl warehouse could be made a -riminati ofenzse. In fact, without ainy --cah chatnge in the conduct of business, cvit a fan tc'ss numbeher of fedenal officials hn arc neiw emiploeyed in the collection of tile nLcinteeus tait taxes, it would be easy to secure it" 15-Iance eef a wacrehouse receipt that would lie cett ill guiranly that the proiduct it purported to pre'hen5~it u-as actuatlly withina the wails of aL per eetly re'sponsi ble ware-house. Without anty oh' the alt' uards and restrictlins which the government nid tthrowau aroundl the issuance of these ware cutse re-ceipete. th1ey nowle pass as good collateral in h. e anks of tht'eaunttry. After this warehtouse 'ec-tt had becen isstued it could bee epjesited with stubtrasurv,. tee bee esaibishedl in each of the ttts cof thie union, and 80 leer cent of the *alue of' the perodluct it represented 'euld lee issued in treasucry notes. Sithi tile present banking facilities of the country iid a law pr perly drawn, a single subitreasulry in -ae-he state could be ms'le etnply sulicienit for all reoses. SINPLE AND coNSTITUITIoNAL. There would he no difficulty in getting noney upheon the warehouse receipt at the itareet hank simply forn the ecst of ex :bange. 'That a simeple, safe and exple hitions mthlod eef getting these treasury notes lt cireciatton can be peerfected, there Is no lubt. tnor i- tiiere any con-titutioneal reason why te goera'nnmetnt should not have the right to -sue its treasury notes based upoen ii waredhoucse ~receipet. At the propeer me and ini the prereei forum I wouldi m er':ake toe deeteinstraite tha~t there Is less con titutinai ed.j.>tion to the issuance of these resry niotes than the-re is to the banks issuing eities aedi on the dieposi. of government bonus, en tee the purtchae-e hey the geeatnmienlt of silver ullion. To deifrayvanyaddhitionial exj~er.:e that the overm~lent Imighit le put to, a sittple tax could cie levied uipeen the iseute of every note, a tax dsmall mough not to lee hburdensonme to the peolple, and ct thii sanietimle large einough toe hereve'nt any one -romt drawing moeney friom the governmilent unless e ad innuledciate u-e fien it. It is salhe to predhict hat ne mor~e monley wcotild lie dlrtawn thlan was w -e-'-arv to chea pely anld econoemically' di-tribunte he -tapile cu feor e con-umnptioni. I do noct he leve that tat anly perhiecd of time uroing the year, -yen the busiest in tile fail, $300)Oe,00.00 of addi :Iciinch notes wvould bee brounghit into use. Lhis estimeate is liberal. It must be remeni seeed that 7,000,000 teaites of cotton at S45 per ta1 onlyequnals S915NOn faOO, and that AfO per tcent of this value only equals $-52,0( entire crop could never at any ti the government. Consumption I on and has made considerable pro days of December, by which time on-halif of the crop has come into bale of cottoin and every bushel of w more be pledged to the governme bale of cotton and every bus is now pledged to the b the marketing season: but i dang:-r of too great an increase noent could limit the amount of its to lie aiivanced upon the pledge of t hunJred millions of dollars would ample to secure a very low rate of an easy tinancial situation durin nonths." But can not a safer, m cious and more direct m devised that will effectively and accomnlish the ends in view without c givriient building or bonding wareho simply an extension of agencies now in ex limit lefore submitting tiie plan, let us c Ior a moment what would he accomplished ::overnnient issuing money direct upon the hionse certificates. It would not prevent the pric of the great staple crops from being regu lated by the universal law of supply nd demiiand. It would simply, by reducing the cost of carrying these products until they were distributeil piece-imeal tor consumption, enhance their v:ile to the extent to which their cot of c:trria;ge was dininishei: or perhaps to be more accura'e. by a universal law of trade, this decrease in cost would be shared both by the producer and the consumer, neither moo.nopolizin:a the full advantage of it. It would :lsf,. by furnishing an abundant and tfexible curr-ncv. render stalble the rates of in tere-t, lirevent artificial stringency in the mofney market tand manipulations to depress the price of coinmodities, and leave the laws of demand and -uonly -o work more evenly and without artificial obstructions. A NEW SUGGEsTION. Now, if it can be demonstrated by discussion that all this can be done through acurrency issued on the great staple crops without carrying the go ernment into either the warehouse or banking biusiness, I am satisfied the farmers would prommtptly accept sich a modification of their views. and every productive interest in the whole countrv coulil be broiht intoW accord and harmony on the subject. The short road to this end is for the govern ment to establish at least one subtreaury in each state of the unim. It now has subtreasuries in New Vork, St. Louis. Chicago, San Fr.inei-co, Bi-ton, Cinciunnati and New Orleans, and to es tablih them in each state would require but little time, very little increase of governmental patronage. and the mere exten-jon of a systemn that has been perfected through years of use. National banks now exist all over the country, and any number can be chartered under the general law. If these two agencies were brought into close and harmoniousi relations, and the national banks of each state were given a credit with the subtrea-urv to lie establi-hed in each state to an a iount equal to the whole or some portiin of their fully paid-in capital stock, and the use of the increased currency th -y obtained thronurh the subtreasury was confined, under prolier -estrictions, to advances upon the great state crops. an abundant currency, as stable as :aiy in existence, could be brought into use -ad the rate of interest on money material.y lowered throughout the Union. Any stringency in money Iroai moving crops wou:d be eliminated Irom the vonditions surrounding commerce, and a i a thful method of cxpansion and contraction in :.c -ordance with the volume of trade inaugurated. The governiment would take no part in the busi oress o the country; it would have no voice in banking or the fixing of credits; the whole ma chinery of gov arnment banking and commerce would move on .iust as it does now, and the only chan:e would be that the national banks, instead of having to draft ioin the great money centers of the ciountry, would tind ample funds~ for moving and handling the great staple crops in the sub trea:uries established practically at their doors. As consumntion took place the increase of cur rency would flow back into the treasury, only to go out again as demanded by the exigen:-ies of trade iorced up.n the country by its enormous anLintul productions. Each state would have one or mnire financial centers. and would be rendered independent (if th-: great financial cen ters. PRAcTICAL WORKING OF BILL. To better understand the plan, let us consider for a moment its practicil working. Suppose a subtreasury was e:tablished in Atlanta and in Savannah, and with one or the other of tiese subtreasuries the national banks of the state had a credit equal to their capital stock, and that they could use the currency derived from this source only for the purpose of advances upon the great staple crops. In stead of sending to New York for currency, as they are now compelled to do with which to pay for cotton, they would be able, on the very class of security which they now accept, to obtain the currency directly fron the sub treasury, instead of from their eastern corre spondents. There would be no drain for this currency upon tne finan cial centers. Cotton would move just as it moves now, and when it finally reached the -reat markets and was paid for an amount of cur rency equivalent to that advanced in Atlanta 'ould tiow back into sonie (ne or other of the ubutreasuries. So conservative are the national banks of the country that it is probiable they could lie sat ely allowed an increase of currency, to be i-ed in handling merchandise generally, but so delicate is the tinencial m.:chinery and so eusdty is it thrown out of gear, that any increase of cur renev should be based on'y upon such great staple articles of merchandise as moust be consumied within a limited period. To renider thesr.:te ol in terest uniform throughout the conntry, and thus to piropierly reguilate the value of money, congre-s, as liy the constitution of thre United states it i,. authorized nd empowered to dii, could, in con-ideration of the adit.onal cincursio~ns made to the barks, provide a low and tixed rate of interest nIsTORY OF SU~rREAsURYt. The plait proposed will run contrary to the view- and prejudices of those who have for a quar ter of a century made war upon the national banks; lint, in spite of every attack, these bianks have continued to exist and to furnish this country with as safe andh stable a system of banking as ever existed anywhere at any periodh of the world. There are leature in regard to the natioinal banks which I have never approived, but I have never piarticipiated in the senseless denunciation so often .huriled at them. Thle iien who mianage themi are the miost able and skilliul financiers in the ciutntry; they are men who have maide a tI o: (iugh stuidy of banking, and who are I chter prepiared tha~n any other people in the country to handle sa fely and conservatively anv increased is sue of currency. Each state would secure all it coulid hole to secure through state banks of issue, and, what is much more, the currency of the country would h4 uni form, and would have behind it the entire credit of the government and a soundness and stability that could not lie obitained in any other way. In the early history of our ciiuntry we tried tihe United States bank; at that time it was argued that the government would lie compelled to delegate the puowers of issuing currency to a banking insti tution that could "meet the requiremients of the vrying diemands of business. We tried the ex perment and abandoned it half a century ago. We triedl the state banks of Issue, and sp~eculatlin overran the country, and bankruptcy was briought upoin thousands and thousands of honest peopi C. The federal government turned its hack upon both systems and established the "inde pendent treasury," as It was then called, or the "sbrasr, as it Is now called. At the time of the establish ment of this system It was gravely argued with great force by nmany of the ablest nien in the country. that'it would nit lie succc:i.ful. tt has stoiod 'the test of half a century. At the timie of its establishment it was argued by John C. Calhoun, its great supporlter and defender, that an elasticity should be. given to the Issue of paper money by the govern meat, ini order that the currency might be sup plied in accordance with the laws of supply and demand. This feature has never been engrafted, as it should have been, upon the subtreasury sys temn. Without it, it Is inciimplete; with it, it is the most complete system that ever has been devised or probably that can ever lie devised. Like all i':her systems, . it needs amendmnt, Irom time to tiene, to make it correspono with the requirements of business, but in all amendments one cardinal principle should always govern the peiple of this union the federal government shuuld issue the money of the country and r gulate its value, and the recognition, credit and power of the federal government should be behind every dol lar that comes into existence. The danger of ex pansion is that it tends to create reckless specula tion: but an isstie of currency limited In Its use to han ding the great staple crops would always have behind it commiodities that are a bsolutely essen tial to the existence of civilizeid man. If It Is safe for thme banks to handle these commodities now to a very large extent upon diafts, hills of exchange andl artificial currency manufactured thronr gh the necesities of conmmerce, It would be equally safe for the same banks to get this currency directly fronm the government. In an article ol this character It Is Impossible to point out all the limitations and provisons5 that shiould surround such an increase of cur rency, l:ut these are mere details which can bie eail perfected. If I have succeeded in causing those who read it to pause and conider well the most vital question of the hour I shall be more thani satisfied. ALLIAYCE PLATFORM ENTTrLED TO sUPPORT. May not every business man in the country put himself squarely upon the alliance platlorni, the subtreasumry bill or something better, relying with confidence upon the correctness of thme gre'at primciple that underlies the measure and trusting to enlighitened discussion to so modify the muethmids and details that It will fully conformi to the spirit and genius of oumr institutions and secure for all, without injumry to any, the relief demanded by the ixieincies or . qr tinancial and commercial conl dtina? QZoBGoz-r