148 



for we see that the actual money credited as deposited?, 

 in the banks (11 millions pesos gold and 2,800 paper 

 m|n.) is nearly twice the actual money emitted for cir- 

 culation, that is to say, if the $400 millions of pesos 

 gold stand as security for the $1100 odd millions of 

 pesos, paper 7 these latter millions of paper notes have 

 to represent again twice their value; and we know that 

 there is always another 300 millions of paper pesos 

 floating about, in the pockets of our inhabitants, pre- 

 sumably. 



By adding wheat as a security for warrants, 

 and warrants for putting into actual circulation some 

 of the $ 800 millions of paper emitted but always lying- 

 unused in the banks, I do not think I can be accused 

 of talking of means of inflating our currency, which 

 as I have endeavoured to show is evidently well inflat- 

 ed as it is. Here I would like to draw attention to 

 the fact that the amount in value of our cereal erop> 

 annually approximates $800 million now-a-days, and 

 that, after deducting the total expenses of harvesting, 

 some $ 245 millions m|n. (Expenses of reaping $ 64 

 millions; threshing $ 81 millions; sacks $ 40 millions: 

 Cartage $ 30 millions and railway freights $ 30 mil- 

 lions), there remains nearly $ 500 millions worth of 

 cereals absolutely free of debt, on which the farmer 

 and his associates might very well expect to raise up to 

 $ 300 millions for the three to six months winch it takes 

 him to dispose of them to the consumers . 



With what open arms would the fanner have re- 

 ceived (and still receive) any combination which would 

 have permitted him to raise up to one third of the 

 value of the $ 200 million of cereals which have been r 

 and are still lying around the country, about the rail- 

 way stations, and along the quay-sides, throughout the 

 past year, and which are now rapidly deteriorating in 

 value because of the inadequate storage provided, so 

 that unless soon consumed they will represent a total 

 loss of hundreds of millions. Elevators would have cost 

 less to build than the total loss which threatens our 

 unsold and unexported remnant of last year's crop. 



And for the farmer will not the question this year 

 be more insistent than ever, will he obtain money easier 

 than before, and if he obtains the funds as easily as ever r 

 will he be able to repay them as profitably as he anti- 

 cipated when he started the year T s operations ; or will 

 he see his year's labours melt away to a mere bread 

 and butter gain after all? 



I do not think that many seriously thiaking farm- 



