The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-13

I tempor-rv ADVANTAGE which may come
from system under which the dollar rises
in its purchasing power. IL must not be
forgotten that the dollar cannot buy more
than formerly, unless property sells Tor
less than formerly. Hence, % VIII De seen
1 that "A large portion OF those ~ no may Nllu
some uecuuiary advantage In a gold stan
GARD VIII discover that their losses exceed
I their gains
ut is sometimes asserted by our oppO-
/ nerts that a bank belongs 10 the debtor
I class. but this is not true OF any solvent
I bank Every statement published by a
Z solvent bank shows that the assets eN-
] ceels the liabilities. That is 10 say while
I the bank owes "a large amount OF money
I 10 its Geposfors. Do not only has enough
I on hand IN money and notes 10 pay Its
otpoSlL1r- DIR III adolIon thereto mas
I enough 20 cover its capital and surplus
l When the dollar is rising in value slowly
Z bank may, by making short time loans
I and taking good security, avoid loss; but
J when prices are falling rapidly, the bank
] is apt 10 lose more because Of bad debts
I than % can gain by the increase In the
/ purchasing power of its capital and sur
] plus. IL must be admitted. however, that
/ some bankers combine the business Of a
1 bond broker with the ordinary banking
[ business. and these may make enough in
/ the negotiation OF loans 10 Offset the losses
] arising ln legitimate banking business.
/ LAS long as human nature remains as
I u Us there viii always be danger that. un-
l less restrained by public opinion or legal
I enac lment, those who see pecuniary
profit for themselves in a certain condi-
/ ton may yield 10 the temptation TO bring
| about that condition.
Jefferson has stated that one OF the
main duties Of government is to prevent
men from injuring one another and never
I was that duty more important than il IL
to-day IL is not strange that those who
| have made profit by furnishing gold TO
/ the government in the hour OF its extren-
/ ljy favor financial policy which viii keep
the government independent upon them.
believe. however, that I speak the sen.
tment Of the vast majority of the people
OF the United States when I saw that a
wise financial policy administered i'm be-
half OF all the people, would make our
government independent Of any combi-
nation or hnanciers foreign "a domestic.
Let me say word. now, in regard 10
certain persons who are pecuniarily ben
ehted 10y gold standard. and who favor
IL, not from a desire TO trespass upon the
rights OF others, but because the circum-
stance which surround them blind them
10 the effect of the gold standard upon
others. ] shall ask you to consider the
language of two gentlemen whose long
public service and high standing in the
party TO which they belong will protect
them from adverse criticism by our op-
ponents.
In 1869, Senator sherman said.
1rhe contraction Of the cur
rency IS far more dis
tressing operation than senator's suppose.
Our own and other nations have gone
through that operation before. 1t is not
possible to take that voyage without the
sorest distress. To every person. except
a capitalist out of debt, or a salaried ON
Ger or annuttant 1t is a period of loss
danger lassitude OF trade. fall OF wages,
suspension Of enterprise bankruptcy and
disaster. It means ruin TO all dealers
whose debts are twice their business cap
ital, though One-third less than their ac-
ual property 1t means the fall of all
agricultural production without any great
reduction Of taxes What prudent man
wound dare to build house a railroad
factory, or barn with this certain fact
before him?
"As l have said before the salaried Off
Ger referred to must be the man whose
salary is fixed for life, and not the man
whose salary depends upon business con-
ditions When Mr.. Sherman describes
| contraction of the currency as disastrous
to all the people except the capitalist out
OF debt and those who stand in a posi-
ton similar to his, he is stating a truth
which must be apparent to every person
who will give the matter careful consid-
Grafton. Mr.. Sherman was at that time
! speaking of the contraction of the volume
or paper currency, but the principle
| which he set forth applies, if there is d
| contraction Of the volume Of standard
money of the world.
Mr.. Blaine discussed the same princi-
! pie in connection with the demonetiza-
! ton OF silver. Speaking in the House
! of Representatives on the 18th of Febru-
airy, 1873, he said 1 believe the struggle
/ now going on in this country and other
| countries for single gold standard would,
! if successful, produce widespread disaster
| in and throughout the commercial world.
! The destruction Of silver as money, and
| the establishing of gold as the sole unit
! OF value must have ruinous effect on
/ all forms of property, except those in
| vested, which yield a fixed return in
| money. These would be enormously en-
/ HANGED in value and would gain a dis
! proportiOnate and unfair advantage over
/ every other species of property
rs It strange that the holders Of in
| vestments which yield a fixed return in
money can regard the destruction of sill
]
| pect the holders of other forms of prop
| erty to protest against giving to money
a 'disproportionate and unfair advantage
! over every other species of property?
If the relatively few whose wealth
| consists largely In fixed investments have
| a right to use the balA to enhance the
| value of their investments, have not the
rest of the people the right to use the ball
| lot to protect themselves from the disas-
| trous consequences of a rising standard?
| The people who must purchase money
/ with the products of toll stand in a posi-
| ton entirely different from the position
/ of those who own money or receive a
\ fixed income. The well being of the ma
/ uOn-aye, OF civilization itself-depends
! on the prosperity of the masses. What
/ shall ii profit us to have a dollar which
| grows more valuable every day il such
a dollar lowers the standard of civih-
cation and brings distress to the people?
What shall 1t profit US il in trying to
raise our credit by increasing the pur-
! chasing power of our dollar, we destroy
tracted by lowering the purchasing pow
er of the products with which those debts
must be paid? If 1t is asserted, as is con-
stantly asserted, that the gold standard
/ VIII enable us to borrow more money
from abroad, l reply that the restoration
4 of bimetallism will restore the parity be-
4 tween money and property, and thus per-
init an era of prosperity which will ena-
bic the American people to become loan
I ers of money instead of perpetual Dor
! rowers. Even if we desire to borrow. how
long can we continue borrowing under
a system which, by lowering the value of
property, weakens the foundation upon
which credit rests2 Even the holders of
| fixed investments though they gain no
advantage from the appreciation of the
dollar, certainly see the injustice of the
| legislation which gives them their ad-
vantage over those whose incomes de-
pend upon the value of property and pro-
ducts.
If the holders of fixed investments will
not listen to arguments based upon JUS
tlce and equity, l appeal to them to CON
slider the interests of posterity We do
not live for ourselves alone; our labor.
gelf-lppfal -f.,.,. ~