Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-08-29
THE DEBTOR GLASS.

THEY Far Ouinu,uber the More Favored
Glasses.
New York Evening Post.
No other phrase has played SO large a
part in the silver controversy in this
country as the debtor class. Injustice
to this class by reason Of the demone-
tization of silver has been really the
leading argument OF the silverites, and
still remains so. 1t is assumed that
If silver had not been demonetized,
the debtor would be able to meet his
obligations with 80 per cent less value
than he must now pay. 1t is assumed,
also land this is the fetching part of
tho argument) that the debtor class is
composed of poor men who are entitled
to the favors of legislation if any are
SO entitled. Poverty and debt are nat
uraily associated together, while wealth
is the usual copcomitant of credit.
In the current number OF the yale
Review" Prof Farnam, in an article
on Some Effects OF Falling Prices, :"
makes an inquiry into the truth Of
this prevailing conception. Who are
the debtor classs Who would be most
benefited by privilege of meeting
their obligations at so cents on the
dollarY Are they chiefly wage workers
or .capitalistsf One thought occurs to
us before locking into Prof. Farnam g
analysis, and that is that it is not
open to everybody to enlist in the deb
tor class. Before a man can borrow
money he must have credit, and credit
is not usually given except to the own
ers OF property. The fellows who
marched in Coxey's army do not belong
to the debtor class, however, much
they might desire to, because nobody
would trust them. In order to be a
debtor you must convince somebody
that you have the wherewithal to meet
your obligation. You need not neces-
sarily give collateral or mortgage secur-
ity, but you mnst be known to lenders
as person Of means as we'll as of in
tegrity. This broad principle is usually
lost sight of in estimates of the debtor
class. When we reflect upon it for a
moment, we are not surprised at the re-
suits Of Prof. Farnam's investigation.
The first debtors in the list are the
railroad corporations. Their bonded
debt in 1890, according to the census,
was S., los, 902, Ops. That they are
truly in distress may be inferred from
the fact that about 80 per cent of them
have defaulted since the census year.
Yet no stump speaker has lifted up his
voice to tell US Of their sufferings or to
show us what injustice has been done
to them by not allowing them to pay
their debts in silver. The drift Of
public sympathy in this case has been
with the creditors, and very properly
so, since these have had no share in
the speculations, but have merely adj
vanced their money for the sake of an
annual return in the way of interest,
II is true that about 60 per cent of the
railroad debt of the country is payable
in gold specifically. and the debtor cor
porations would not be benefited by a
cheaper dollar, but il silver were re-
monetiZed, and all their income was in
the inferior currency, it would be much
harder for these poor debtors to get the
gold to meet their obligations. They
would have TO raise the rates of freight
and fare to corresponding degree, and
1t is doubtful whether they would be
able to do so. There are many other
debtor corporations besides railroads,
such as street car companies, steamship
companies, telegraph and telephone
companies, gas and electric light com
panies, coal, iron, copper, lead and even
silver mining companies. AL these are
part and parcel of the debtor class. vet
how small share of public sympathy
they receive.
When we open the books of the banks
we find two classes OF debtors: first,
the borrowers of the banks money, and
second, the banks themselves. The
bank loans amounted in 1890 to So. :
l35, 600, 600, or three-fifths as much as
the railroad debt of the country. But
the banks at the same time owed their
depostiors 81, 1874, 600, 1913. To which Of
these debtors should we extend our
sympathy, if to either. Probably no.
body would waste any tears on the
banks for, although the shareholders
are largely widows and orphans, the
lending of money by them is the only
fact that stands out prominently or
makes any impression in the public
eye. In the case of savings banks it
is a little more obvious that they are
in debt to depositors, and that these
belong to the poorer classes of the com.
munity. Yet we never heard a silver
lite mention the savings banks or an
banks as belonging to the debtor class.
Prof. Farnam enumerates the other
leading members of the debtor class,
showing that they are in all cases those
who have got ahead in the world, SO
that they are able to furnish mortgage
security or otherwise 10 convince the
lending class that they are able to pay.
They have more coming to them than
they owe-a fact which puts them in
the capitalistic class. Who, then, are
the creditor class who ought to be paid
off in silver at so cents on the dollar.
or at some other discount, in the inter
est of everlasting Justice? 1t is not easy
to catalogue these, but we know that
they include the savings bank deposit
tors, the charitable and educational in
stitutions-the colleges, for example.
have $50, 900, 600 Invested in MORTGAGE
loans-the holders of life, fire. marine
and accident insurance policies, the
investors in building and loan associa-
tions, the members of benefit societies
and trades unions which provide for
sickness mad accident to members, and
finally the whole wage.receiving class,
who are creditors every day in the wear
except pay day, their employers being
debtors for the corresponding amount.
The capitalist group of debtors, accord
ing to Prof. Farnam's computation.
owe not less than nineteen thousand
million dollars, while the creditors.
who really belong to the middle or
poorer classes, have at least seven thou
sand millions due to them, and This
does not include wags earned, but un-
paid.