Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1896-10-30
A LOOK AHEAD.
IF BRYAN is ELECTED, WHAT THEM

All Creditors VIII Try to Collect Before
Gold Goes to "A Premium-Debtors WIN
BE Unable to Pay Prices VIII Fail
Ruinously-Runs VIII BE Made on Banks.
Cold VIII Disappear VIII Close.
Labor VIII he Unemployed Panic and
Distress VIII FoIlow-No Silver Could
lie Coined For Ten Months, il at All.
Capitalists CouId Save Themselves, but
the Poor Would Become Poorer.
Ii Mr.. Bryan is elected, have you
weighed what the results will be?
At Paterson on Sept. 2S he said: 81
say to you now that my election means
that this nation shall open its minis to
the free coinage Of both metals at the
earliest possible moment. Not only that,
but my election means that this nation
shall treat the silver dollar just as it
treats the gold dollar and that fe shall
not issue bonds to buy gold. "
If the treasury gold reserve is not TO
be replenished by bond sales, it Is GER
tain that il can't last long. Foreigners
would Immediately call for their loaps
and balances here, and holders Of the
S33S. 600. 600 Of outstanding greenbacks
and treasury notes would quickly with
draw the 1928, 600, 600 Of gold now in
the treasury, to either export or hoard
it. and leave the holders Of the remain
ing 5000, 900, 600 to take their pay in
silver
That this gold will almost immcdi-
atelv be exported Mr. Bryan admits.
On Sept. 20 at Tammany hall he said,
lyon know that with gold as our only
primary money and the fact that the
little quantity Of gold can be drained
away at a moments notice by foreign
creditors, il leaves us. y etc.
Asall our national bank notes are re-
deemahle in greenbacks they, too, would
fall with greenbacks to silver basis.
In short, Mr.. Bryan's election would
as soon as the present gold in the treas
urv is exhausted, put our currency on
silver basis. and all debts, except
where otherwise expressly Stipu-
lated, would be paid I'm silver.
II will be observed that this would
all happen, even if no free silver
coinage act should ever be
passed.
As interest on government BONDS
would henceforward be paid in silver
and also all dividends on stocks, foreign
capitalists would dispose largely OF their
holdings in these, and thus nocessitate
further large remittances of gold.
Their correspondents here and Dor
rowers Of foreign money, being called
on TO pay up, would be compelled TO call
in their loans and draw their balances
out Of bank.
All creditors in this country who pre-
fer gold to silver dollars (Which includes
the bulk of them would demand all
debts due them paid, and. getting green
backs or treasury notes for their bank
balances. would present them at the
treasury for gold before it was too late,
If impossible 10 get gold, they would
buy sterling exchange or exchange on
Canada. 1t was reported that prior
70 Oct. l over So, 600, 600 in gold had
already been deposited in Canadian
banks to avoid the risk Of the coming
election.
In short, every man who had
n dollar coming to him would
want that dollar paid him while
it was still worth 100 cents and
before il got to be worth but OIL.
The business houses and other debt
ors called on to pay up would be COM
PEELED to call on their debtors, and thus
all the debtors in the country would be
called on to pay up Immediately. The
demands on the banks would compel
them to call in their loans, and, if not
paid, TO sell or try to sell the collatcrals.
Debtors would be compelled to sell
their property at any price, and where
all debtors were sellers at once the de-
olines would be such as we have never
seen before, because there has never be-
fore been such wholesale calling in OF
debts, and consequently selling, as this
wOuld cause.
Business houses the country over, be-
ing unable to collect balances due them
or TO realize on their stock, except at
ruinously low prices. if at all, must fail
Nothing could save them.
Small depositOrs, nervous and follow
ing the larger ones, would draw their
balances and runs on banks would be-
come general.
With these runs upon all the banks
they must either break or suspend. In
the cities the stronger ones could COM
bine and suspend, but the weaker ones
and all country banks would fail.
The panic and ruin would far exceed
that of 1873 or of 1898, the latter Of
which, called the "silver panic, was
caused by the apprehension only Of
going on a silver basis This panic would
be caused i'm part by actually going
on that basis.
Mr.. Bryan admits this: In the Chi
caQo convention he said, "When you
come before us and tell US that we shall
disturb your business interests, we reply
that you have disturbed our business in
terests. And the st. Louis Globe-Dem
ocrat reported his saying: Il think it
(meaniDg the victory Of the free coinage
movement) will cause panic. But the
country is in deplorable condition, and
1t will take extreme measures 70 restore
it to condition Of prosperity. "
In the general scramble by foreign
and home creditors for gold, as there is
not enough to go round. it would neces