The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-05-15

but it will make us wary Of our foot
steps. Good faith and public policy
demand that we appreciate our cur
rency to gold, but in the process we
must be careful that bankruptcy, dis
treSs and want do not result. The
debtors Of this country include the
active, enterprising, energetic men in
all the various employments of life.
1t is serious proposition to change
their contracts SO as in effect to re-
quire them to pay one-third more
than they agreed to pay. They have
not paused in their business to study
questions of political economy. They
have based their operations upon this
money which has been declared to be
lawful money. Its relative value may
be changed, but a reasonable oppor-
tunity should be given them to
change their contracts SO as to adopt
them to the new standards of value.
II senators wisn other ex-
ampleS Of the severe process OF pass
ing from a deprecated currency to
a gold currency, or to a paper
currency convertible into gold, let
them read the story Of the
times after the revolution and the
war of 1872, and after the revulsion Of
1887 all OF which were periods OF
transition from a deprecated paper
currency. Sir, it is not possible to
take this voyage without sore dis
tress. To every person except a capi-
talist out OF debt or to the salaried
officer or annuitant it is a period OF
loss. danger, prostration OF trade, fall
of wages. suspension OF enterprise,
bankruptcy and disaster. To every
railroad it is an addition of at least
one-third to the burden of its debt;
and more than that deduction from
the value Of it's stock. TO every bank
it means the necessity OF paying one
hundred fifty dollars for one hundred
Of it's notes and deposits, except so
far as the bank may transfer this to
its debtors. 1t means the ruin of all
dealers whose debts are twice their
capital, though one-third less than
their property. 1t means the fall OF
all agricultural productions without
any very great reduction OF taxes. To
attempt this task suddenly by a sur
prise upon our people by at once
paralyzing their industry by arresting
them in the midst Of lawful business
and applying new standard of value
to their property without any reduc-
tion of their debt or giving them an
opportunity to compound with their
creditors or distribute their loss,
would be an act of folly without ex-
ample in modern times.
1T is sometimes said that we die
this in the passage Of the legal tender
| act; that we inflicted the same loss on
the creditor that we now deprecate
| for the debtor. This is not true. The
| effect of the legal tender act was, un
| doubtedly, to appreciate our notes, but
the process was very slow and gradual
| For more than year it scarcely Oper
ated as depreciation, and during al
that time the capital paid off by de
| preciated notes was invested in bonds
bank stocks, railroads and manufac
turing pursuits created by the war
which yielded as much in gold as thu
capital produced before the war
Capital lost nothing by the war ever
when paid in greenbacks, for the de
mands for capital during the wa
made ample amends for the loss b.
the depreciation In greenbacks. 1t i
estimated that the inter-bearing capi
tai of this country now is upon tn
gold basis more than double that o
1860. And if it were true that appre
citation now would only work the sam
injury to the debtor that depreciation
did to the creditor we should not
justified in inflicting in peace the ir
juries which were justified by wal
and the creditor, who is usually tn
holder of property, is better able
bear an addition to his burden. Gu
power over the creditor is unlimited
We may levy taxes upon him to an
amount; but. we have no power t
vary contract or to add to the bu
den of an existing debt"
| Continued IN our neat ne,n,ber.)