Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-08-03

Continuing, Secretary Carlisle said:
1.-The banks, trust companies. building as
sociations and other similar institutions
owe the people of the United States today
s., 3Jl3, 13S 521 for money actually deposited.
a sum nearly eight times greater than the
total capital Of all the national banks in
the country; while the life insurance poll
cies held by the people in the various kinds
of corporations and associations and In
force today amount to 5S,SO4.3o7 a
larger sum than has been actually invested
in all our railroads, and about fifteen times
larger than the capital OF all the national
banks
I'm view Of these facts, which cannot be
successfully disputed. l submit that you
ought seriously TO consider all the conse-
uuences to yourselves and your fellow cit
fzens before you agree 20 the free and I'M
limited coinage Of legal tender silver at a
ratio Of Is to 1. in order that these great
corporations and associations may have
the privilege of discharging their debts to
the people by paying 81 or - cents on the
dollar, for that is exactly what 1t means.
1T is low estimate to say that each
one of the depositors IN savings and other
banks and In building associations, and
each holder Of life insurance policy or
member of mutual benefit and assess
ment association, has dependent upon him
or her an average of at least two other
persons, and. If SO, q majority Of all our
people are directly or indirectly creditors
Of these corporations and associations and
are interested in the preservation Of q
standard of value which will insure the
they parted with when they made their
loans or deposits or paid their assessments
or premiums.
EVERY dollar the people out into these
banks and trust companies and other insti-
tntions. and every dollar they paid for in
Surance was worth 100 cents and would
procure 100 cents worth of commodities in
the market when they earned it and when
they invested it. and they have an unques-
tionable right to demand that 1t shall be
refunded to them in dollars worth 100
cCr.ts everywhere. The adoption of any
policy that would depriv. them Of this
right would not only inflict enormous
loss upon them, bur would 50 seriously i'm
pair their faith in the fidelity and utility Of
such institutions taat attempts 10 accumu-
late and save surplus earnings would be
abandoned, or at least greatly discouraged,
for long time 10 come.
A Financial Panic.
"But if free and unlimited coinage Of
legal tender silver at the ratio of 10 to l
is established in this country very large
part of the money deposited in these va
rious kinds of savings institutions will not
even be repaid in deprecated silver, but
will be wholly lost, because such a reckless
monetary system would precipitate finan-
cial panic, which very few, II any, of the
repositories could survive. I doubt that
tnere Is q single financial institution In the
country that could sustain the pressure
that would be Immediately made upon it
by its depositors and other creditors, when
it became apparent that our standard of
value was to be lowered and our currency
deprecated by free coinage.
Payment of all our obligations held
abroad would be demanded in gold at once;
every investment Of foreign capital in this
country would be instantly withdrawn:
every man who owed debt at home OF
abroad would be called upon to pay 1t; all
depositors in banks and other institutions
would want to withdraw their money at
the same time; no loans could be negoti-
ated and no credit would be given, because
no man would lend money or sell property
on time when he knew with absolute GER
tainty that he would be paid in a Jepreci-
ated currency.
Creditors would net wait for the actual
passage of free coinage law, but as soon
as such q measure had received the ap-
prevail Of the people at an election they
would demand their money. and if not paid
they would enforce its collection by judi