Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-08-21
WHOLE NUMBER 1901.

S!''0ii uHueI WHICH the dollar rises
IN Its purchasing power, it must not
be forgotten that the dollar cannot
buy more than formerly, unless prop
erty sells for less than formerly. 1t
Will be seen that large portion of
those who may find some pecuniary
advantage in the gold standard will
dIsuo'ei that their LOSSES eAueud their
gains. 1t is sometimes asserted by
our opponents that a bank belongs
to the debtor class, but it is not true
OF any solvent bank. Every state
ment published by a solvent bank
shows the assets exceed the liabilities :;
that Is to say, while the bank owes
large amount of money to its deposi
tors, it not only has enough on hand
IN money and notes to pay its deposi-
tors, but in addition thereto has
enough to cover its capital and sur
plus. When the dollar is rising in
value slowly, the bank may, by max
ing short-time loans and taking good
security, avoid losses; bu. when
prices are falling rapidly, the bank is
apt to lose more by bad debts than
1t can gain by the increased purchas.
ing power Of its capital and surplus.
1t must be admitted, however, that
some bankers combine the business of
bond broker with ordinary banking
business, and these may make enough
In the negotiations to offset losses
arising in legitimate banking busi.
ness. As long as human nature re-
mains as it is, there will always be
danger, more or less restrained by
public opinion or legal enactments.
that those who see pecuniary profit
for themselves in certain conditions
may yield to temptation to bring
about those conditions. Jefferson mas
stated that one of the many duties
OF government is to prevent men from
in]urlng one another, and never was
that duty more important than it is
to day. 1t is not strange that those
who have made profit by furnishing
gold to the government in the hour of
its extremity favor financial policy
which will keep the government de.
pendent upon them. 1 believe, how.
ever, that l speak the sentiment of a
vast majority of the people of the
United States when say that a true
financial policy, administered in be-
half OF all the people, would make our
government Independent of any com.
bination of financiers, foreign or do
mestic.
Let me say word now in regard to
certain persons who are pecuniarily
benefited by the gold standard, and
who favor it, not from any desire to
trespass upon the rights of others, but
because circumstances which surround
them blind them TO the effect of the
gold standard upon others. 1 shall
ask you to consider the language of
two gentlemen whose long public SER
vice and high standing in the party 10
which they belong will protect them
from adverse criticism by our oppon-
ents. In 1869, Senator Sherman
said: "Contraction of the currency
is far more distressing operation
than Senators suppose. Our own and
other nations have gone through that
operation before. 1t is not possible to
take that action without the sorest
distress to every person, except the
capitalist, out Of debt, of the salaried
officer or annuitant. 1t is a period of
loss, danger, las.itude OF trade, fall of
wages, suspension of enterprise, bank.
ruptcy and disaster. 1t would mean
ruin to all debtors whose debts are
twice their business capital, though
one-third less than their actual prop.
erty. 1t means the fall OF all agricul-
tural products without any great re.
duction of taxes. What prudent man
would dare build a house, railroad
factory or barn with this certain fact
before himF As / have said before,
the salaried officer referred to must be
man whose salary is fixed for life,
and not the man whose salary de-
pends upon business conditions.
When Mr.. Sherman describes the con-
traction OF the currency as disastrous
to all people, except the capitalist out
OF debt, and those who stand in posi-.
ton similar to his, he is stating the
truth, which must be apparent to
every person who will give the mat
ter careful consideration. Mr.. Sher-
man was at that time speaking of the
contraction of the volume of paper
currency, but the precep.s which he
sets forth apply, if there is a contrac-
ton of the volume of the standard
money OF the world.
BLAINE ALSO QUOTED.
Mr.. Blaine discussed the same
principle in connection with the de-
monetization of silver. Speaking in
the House of Representatives on the
7th of February, 1878, he said: "The
struggle now going on in this and
other countries for single gold stand
ard, would, if successful, produce wide
distress throughout the commercial
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