CHAPTER IV. 



HISTORY OF THE SUB-TREASURY PLAN. 



So much has been said about the origin of the sub-treasury 

 plan, that a brief mention of its history will doubtless be read 

 with interest. The sub-treasury plan originated with Dr. C. W. 

 Macune. During the session of the Texas State Alliance, in 

 1888, Brother Macune delivered an address, in which he ad- 

 vanced the proposition of inaugurating a system of trade cur- 

 rency, one that would "purchase goods. and make exchanges." 

 His plan was to establish trading centres where goods were sold 

 at about cost ; issue currency payable in such goods, and receive 

 nothing but such currency in payment ; refuse all other kinds 

 of currency, and force customers to obtain this trade currency 

 in order to purchase the low-priced goods. The fact that this 

 currency would pay for goods at a much cheaper rate than other 

 currency, would induce people to take it in the ordinary transac- 

 tions of business, and keep it at or above par. " Nothing was 

 done about it, however, and Brother Macune came to Washing- 

 ton during the winter of 1889, and started the National Econo- 

 mist. The idea of supplying a volume of currency to the people, 

 free from the tribute of the money changer, continued to occupy 

 his attention more or less. 



Some time during the summer following, in discussing the 

 matter at home, the idea of the sub-treasury plan presented it- 

 self. The more he considered it, the more practicable it ap- 

 peared, and it soon developed into the true theory of a flexible 

 volume of currency. He reasoned from every point that pre- 

 sented itself, and failed to find an error in the principle involved. 

 Some time in the month of November he wrote it out and sub- 

 mitted the main points to Brother Harry Tracy and myself. 

 Then he prepared it in full, and read it to the men connected 

 with the office. It was received with much favor. Others were 

 consulted in regard to it ; among them, Brothers Polk and Liv- 

 ingston, and it was agreed to bring it before the national meet- 

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