The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-08-13

dollar it also makes it more difficult
to obtain possession of the dollar; they
nent. loss of work more probable and
complement less certain. The gold
standard encourages boarding or mon
ey, because money is rising; it also
discourages enterprise and paralyzes
industry. On the other hand the re-
storation of bimetallism will discour-
age boarding, because when prices are
steady or rising, money cannot AFFORD
to lie idle in bank vaults.
Farmers and wage earners together
constitute q considerable majority of
their interest be ignored in considering
financial legislation? A monetary sys-
tenn which is pecuniar1ly advantageous
to a few syndieates has far less to
commend 1t than a system which
would give hope and encouragement
to those who create the nations
wealth.
Our opponents have made a special
appeal to those who hold fire and life
insurance policies, but these policy
holders know that since the total pre-
miums received exceed the total losses
paid, rising standard must be of
more benefit to the companies than to
its policy holders.
Much solicitude has been expressed
by our opponents for depositors in
savings banks. They constantly pa
rade before these depositors the adj
vantages of the gold standard, but
these appeals will be in vain, because
savings bank depositors know that I'M
der the gold standard there is increaS-
ing danger that they will lose their de-
posits because of the inability of banks
to collect their assets, and they know
still further that if the gold standard
is to continue indefinitely, they may be
compelled to withdraw their deposits
in order to pay living expenses It is
only necessary to note the increasing
number Of failures in order to know
that the gold standard is ruinOus to
merchants and manufacturers. These
business men don't make their profits
from people from whom they borrow
money, but from the people to whom
they sell their goods.
If the people can't buy, retailers
cannot sell, and If retailers cannot sell,
wholesale merchants and manufactur-
ers must go into ba H1s IPy
Those who hold as permanent in
VeStments the stock of railroads and
of other enterprises Il don't include
those who speculate in stocks or use
stock holdings as the means of OBJ
tanning an inside advantage in con-
struction cOntracts) are injured by the
gold standard. The rising dollar de-
StroyS the earning power OF these en-
terprises without reducing their liabil-
tiles, and as dividends cannot be paid
until salaries and fixed charges have
been satisfied the stockholder must
bear the burden of hard times.
Salaries in business occupations de-
pend upon business conditions, and
gold standard both lessons the amount
rieS- Official salaries, except Sala-
rieS of those who hold Office for life,
must in the long run be adjusted to
conditions Of those who pay taxes, and
if the present financial, policy continues
so must the contest between tax payer
and tax eater increase in bitterness.
Professional classes in the main re-
ceiVe their support from producing
classes, and can only enjoy prosperity
when there is prosperity among those
who create wealth.
\
the effect of the gold standard upon
all classes. in fact, I have only had
time to mention a few, but each part
should be able to apply the princi-
pie to be acted upon 1t must also be
remembered that it is the desire of
people generally to convert their earn
ings into real or personal property.
This being true in considering any
temporary advantage which may come
from the system under which the dol
lar rises in it's purchasing power. it
must not be forgotten that that dollar
cannot buy more than formerly, unless
property sells for less than formerly
LOSSES EXCEED GAINS
1T will be seen that a large portion
of those who may find some pecuniary
advantage in gold standard will discov-
er that their losses exceed their gains
It is sometimes asserted by our oppo-
nents that a bank belongs to the debtor
class, but this is not true Of any solvent
bank. Every statement published by
solvent bank shows the assets exceed
the liabilities; that is to say, while the
bank owes large amount of money to
its depOSitOrS it not only has enough on
hand in money and notes to pay it's
depositors, but in addition thereto has
enough to cover its capital and surplus
When the dollar is rising in value slow
~ the bank may by making short time
loans and taking good security avoid
losses but when prices are falling rap
idly the bank is apt to lose more be
cause of bad debts than it can gain by
tai and surplus 1t must be admitted
however, that some bankers combine
the business of bond broker with the
ordinary banking business and these
may make enough in negotiation of
loans to Offset the losses arising in the
legitimate banking business. As long
as human nature remains as 1t is there
will always be danger more or less re-
strained by public opinion or legal en-
actment that those who see pecuniary
profit for themselves in certain condi-
tiOns may yield to temptation to bring
about that condition.
Jefferson has stated that one of the
main duties Of the government is to
prevent men from injuring one another
and never was that duty more import
ant than it is today. It is no strange
thing that those who have made a prof
it by furnishing gold to the government
in the hour of its extremity favor a
financial policy which will keep the
government dependent upon them. I
believe, however, that I speak the SEN
timent of the vast majority of people
of the United States when 1 say a wise
financial policy administered in behalf
of all the people would make our gov
eminent independent Of any combina-
ton OF financiers, foreign or domestic.
BENEFICIARIES OF GOLD
Let me say a word now in
regard to those benefited by the
gold standard and Who favor It,
not from a desire to trespass
upon the rights of others, but because
the circumstances which surround
them blind then1sto the effect OF the gold
upon others. I shall ask you
to consider the language of two gentle
men whose long public service and high
standing in party to which they belong