Evening star., 1896-08-13
financial policy continues we must expect
the contest between the taxpayer and the

taxeater to increase inbftterness.
The professional classes-in the main
derive their support 'tfrom the producing
classes, and can only enjoy prosperity when
wealth. 81
Il have not attemuted to describe the
effect of the gold standard upon all classes
In fact, have only had time to mention
Ie"-put each person will be able to apply
the principles expressedcto his own case.
II must also be remembered that 1t is the
desire of people generally to convert their
earnings into real or personal property. This
oeins true' IN considering any temporary
advantage which may1oome from system
uhder which the dollar rises in it's purchas-
ing power, 1t must not be forgotten that the
doliar cannot buy more than formerly, un-
less property sells for less than formerly
!1 1lence, II Wlll be seen that large portion Of
those VINO may find some pecunary advant-
age IN gold standard will discover that
their losses exceed their, gains.
IL 1s sometim mes asserted by our oppo-
nents that bank belongs to the debtor
class but this is not true of any solvent
pahk. Every statement published by a SOL
vent bank shows that the assets exceed the
liapliltleS. That is to say, while the bank
o"es IarSe amount of money to it's de-
positors, 1t not only has enough on hand in
money ana notes to pay it's depositors, but
IN ADDITION thereto, has enough to cover its
capltai and surplus. When the dollar is
rising IN value slowly, a bank may, by max
ing snort time loans and taking good secur-
lty, avoid loss; but when prices are falling
raPldiy the bank Is apt to lose more because
of bad debts than 1t can gain by the increase
In the purchasing power of its capital and
surplus.
Duty of the Government.
'It must be admitted. however. that some
bankers combine the business Of a bond
broker with ordinary banking business and
these may make enough In the negotiation
OF loans to offset the losses arising in legit-
mate banking business. AS long as human
nature remains as 1t is there will always be
danger that, unless restrained by the pub
TIC opinion or legal enactment, those who
see pecunlary profit for themselves In
certain condition may yield to the tempta-
tlon 10 bring about that condition. Jeffer-
son has stated that one Of the main duties
or the government Is to prevent men from
ihJurlng one another, and never was that
duty more important than it is today. 1t is
not strange that those who have made a
pro1t by furnishing gold to the government
IN the hour or its extremity favor 1nan-
cial polcy which. will keep the government
dependent upon them | believe however
that speak the sentiment Of the vast ma
Joflty OF the people of the United States
when ns,a,a l say say that a financial policy
administered in behalf of all the people
would make our government independent of
any combination Of fndnciers, foreign or
domestic ~
Let me say word now in regard to Ger
by a gold standard, and VINO favor IT, moi
IRON desire TO trespass upon the rights Of
others, but because the circumstances
Whlch surround them blind them to the ef-
iect VI the sold standard upon others.
Senator Sherman Quoted.
1 snail ask you to consider the language
OF Two gentlemen whose long public service
and nigh standing in the party to which
Trey belong will protect them from adverse
criticism by our opponents. In 1863 Sena-
'or sherman said: The contraction of the
currency 1s far more distressing opera
lch than Senators suppose. Our own ard
other nations have gone through that oper-
ation before. 1t is not possible TO take that
voyage without the sorast distress To
every person except capitalist out of debt
or salaiied officer or annuitant 1t is q
period OF loss, danger, Aassitude of trade
IAN OF wages, suspension Of enterprise
bankruptcy and disaster. 1t means ruin to
an dealers whose debts are twice their bus
mess capital. though one-third less than
their actual property. 1t means the fall of
all agricultural production without anv
great reduction of taxes. What prudent
nan would dare to build a house, rail-
road factory or a barn with ;his certain
TACT before him? AS / have said before the
salaried officer referred to must be the
man whose salary is fixed for life, and not
ness conditions. When Mr. Sherman de-
scrlbes contraction OF the currency as dis
astrous to all the people except the cap;-
tallst out OF debt and those VINO stand in a
pGsitioh similar TO his, he Is stating truth
"hlch must be apparent to every person
who VIII give the matter careful cousid-
Grafton. t1r. Sherman was at that time
speaking of the contraction of the volume
he set forth applies If .hare is a contrac-
ton of the volume Of the standard monev
of the world.
Mr.. Blaine's Attitude.
Mr. Blaine discussed the same principle
IN connection with the decentralization of
silver. Speaking in the House Of Represen.
tatives on the 7th Of February, 1878, hs
said I believe the struggle now going on
in this country and other countries for a
single gold standard would, if successful,
produce widespread disaster in and
throughout the commercial world. The de-
struction of silver as money and the estab-
fishing of gold the sole unit of value
must have ruinous effect on all forms
of property except those invested which
yield a fixed return In money. These would
be enormously enhanced in value and would
gain disproportionate and unfair advan-
tage over every other species Of property
Is 1t strange that the holders of invest
ments which yield a fixed return in money
can regard the characterization of silver with
complacency? May we not expect the hold
ers of other forms Of property to protest
against giving money disproportionate
cies of property? If the relatively few whose
wealth consists largely in fixed investments
have right to use the ballot to enhance
the value Of their investments, have not
the rest Of the people the right to use the
ballot to protect themselves from the dis
astrous consequences of rising standard2
Tho people who must purchase money with
the products of toll stand in a position en-
tirely different from those who own money
or receive fixed income. The well-being
Of the nation-aye, of civilization itself
depends upon the prosperity Of the masses
A Dollar Daily increasing In Value
What shall it profit US to have a dollar
which grows more valuable every day If
such dollar lowers the standard Of civili-
zation and brings distress to the people?
What shall it profit us If in trying to raise
our credit by increasing the purchasing
power of our dollar we destroy our ability
to pay the debts already contracted by
lowering the purchasing power of the
products with which those debts must be
paid? If it is asserted, as it constantly
is asserted, that the gold standard will
enable us to borrow more money from
abroad, reply that the restoration of BIZ
metalllsm will restore the parity between
money and property, and thus promote an
era of prosperity which will enable the
American people to become loaners of
money instead of perpetual borrowers
Even If we desire to borrow, how long