The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-11-06
TWO NEWSPAPERS.

TWO NEWSPAPERS.
From the Minneapolis Penny Press.
The Cincinnati Enquirer-the wealth.
lest and most important newspaper pub
lished in the Ohio valley,-is an out and
out advocate of the doctrine of "the free
coinage of both silver and gold" in this
country. Just as emphatically the Min
neapolis Tribune is an out and out adj
vocate of the single gold standard" and
the present currency laws of the United
States.
Two manufacturing institutions in Gin
cinnati have recently failed and gone out
of business. Concerning their failure the
Enquirer says: THE bankers dollar has
in its purchasing power almost doubled
in value, while the manufacturer and
business mans dollar, invested in build
ings machinery and merchandise, is re-
duced nearly fifty cents below original
cost The bankers are very consistently
in favor of doubling the purchasing pow
er of money and currency, but what is
their gain is the enterprisng business
mans loss.
The Tribune of today, in commenting
uDon the editorial remarks of the En-
quirer, asserts that this is in line with
the current Populistic and free silverite
Logic The agitators for debased cur,
rency are constantly accusing the banks
nf Ohor in m
preciate the value of money" There
upon the Tribune proceeds to comment
upon a long communication from gen
tleman in ST. Paul to convince the public
that these banks and trust companies in
vest their deposits in property as we'll
as business men, and therefore it would
logically follow that when they were
called on to return this money they
would be compelled to pay back to the
depositor in the same enhanced values
which they received.
Will the Tribune be good enough to
point out any illustration of the point
named? Is the Tribune ignorant of the
fact that Bankers, without regard to dis
tinction as to being State or National,
Trust Companies and Savings Banks
blank to loan any man a dollar on real
estate. or any securities arising from his
business? If not, then why does the paper
put such a foolish proposition? Let us
give the editor of the Tribune a little
Light
If that gentleman will send his reporter
to the Farmers and Mechanics Savings
Bank in the city of Minneapolis he will
be informed by the proper officer, that
not one dollar has been loaned by that
institution upon real estate. or business
property since the panic of 1898 II he
asks how they invest their surplus he
will be promptly Informed I'm bonds is
sued by Cities, Counties, States or the
Nation" If he will go to a National Bank
and ask if money is being loaned upon
securities representing any property un
der heaven outside of bonds, he will be
informed in the negative.
If man borrows money of the banks at
the present time, he is expected to be able
to return that money in definitely agreed
time in identical quantities and character
of that which represents the primary
money of the United States, viz.-"gold,'
and he will contract n writing so to do.
When that debt natures and the bank
demands payment, he will be compelled
to make payment in gold or its equiv
alent, provided the property which he
has been handling can be sold in the
market for a sufficient amount to pay
that obligation.
AS bankers do not lend business men,
or intend to do so, more than about 80 per
cent of what their property is supposed
to be worth, the banker is always safe,
at least in theory, in securing the payment
of his debt in gold.
Look at this proposition in any form,
and the assertion of the Cincinnati En-
quirer VIII be found to be correct ninety
nine times out of an hundred. Illustra-
tons are afforded on every hand. We
have one in our own midst that tells it's
own story.
Three years ago gentleman owned
business property largely, in this city,
and among the very choicest of business
property, that was valued by conservative
bankers at 100000. Necessities COM
PEELED him to mortgage that property for
about $575000. The mortgages matured,
foreclosure was had, and every dollars
worth has gone to the mortgages, thus
wiping out the entire marg.n of 1926, 900,
or nearly 40 per cent of the property.
Let us see how this has worked with
reference to the dollars invested by the
mortgages! Their money remained in
tact all the while,-not only drawing
per cent interest, but SO enhancing in
value, day by day, until the equities in
this property were practically eaten up.
In other words, as the Enquirer says,
THE bankers dollar has in its purchas-
ing power almost doubled in value, while
the business mans dollar, invested in
buildings, is reduced almost SO per cent"
Until the Tribune can cite a single case
where the investor of money in 1928.
has been compelled to return it's equiv
alent under present enhanced values, its
argument becomes the merest theorizing