Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-08-13


until salaries and fixed charges have been
satisfied, the stockholders must bear the
burden of hard times.
Salaries in business occupa tions depend
upon business conditions and the gold
standard both lessons the amount and
threatens the permanency of such sala-
|, ries.
Official salaries, except the salaries of
those who hold office for life, must in the
long run be adjusted to the conditions of
those who pay the taxes, and if the pres
ent financial policy continues we must
expect the contest between the tax payer
and tax eater to increase in business.
The professional classes, in the main,
get their support from the producing
classes, and can only enjoy prosperity
when there is prosperity among those
who create wealth.
1 have not attempted to describe the
effect of the gold standard upon all
classes-in fact, | have only had time to
mention. a few-but each person VIII be
able to apply the principles stated TO
his own occupation.
1t must be remembered that 1t is the
desire of people generally to convert
their earnings into real or personal prop
erty. This being true, in considering
any temporary advantage when may
come from system under which dollar
cannot buy more than formerly, unless
property sells for less than formerly,
it will be seen that large por-
ton of those who may find some peeunl-
airy advantage in gold standard VIII
discover that their losses exceeded their
gains.
1t is sometimes asserted by our oppo-
nents that bank belongs to the debtor
class, but this is not true of any solvent
bank Every statement published Dy
solvent bank shows that the assets ex-
coed the Utilities. That is to say, Whlle
the bank owes a large amount Oh money
Ia ~
on hand in money and notes to pay It's
depostors, but, in addition thereto, mas
enough to cover it's capital and surplus
When the dollar is rising In value Slowly
a bank may by making short time loans
and taking good security, AVOID loss
but when prices are falling rapidly me
bank is apt to lose more, because OF pad
debts, than it can gain by the increase
in the purchasing power OF It's capltal
and surplus.
1t must be admitted, however, that
some bankers combine the business OF a
bond broker with the ordinary banking
business, and these may make enough In
the negotiation of loans to offset the
losses arising in legitimate banking pusl-
ness. AS long as human nature remains
as it is there will always be danger that,
unless restrained by public opinion or le-
gal enactment, those who see pecuniary
profit for themselves in certain condl-
ton may yield to the temptation TO Drlh8
about that condition. Jefferson has stated
that one of the main duties of the gov
eminent is to prevent men from lnJurlng
one another and never was that duty
more important than 1t is today. 1t Is
not strange that those who have made
a profit by furnishing gold to the govern
ment in the hour of its extremity FAVOR
financial policy which will keep the gov
eminent dependent upon them. believe,
however, that l speak the sentiment OF
the vast majority of the people OF the
United States when 1 say that wise
financial policy administered IN penalll OF
all the people would make our govern
ment Independent of any combination OF
financiers, foreign or domestic.
Let me say a word now In regard 10
certain persons who are pecuniarily pen
Gifted by a gold standard. and who favor
1t, not from a desire to trespass upon the
rights of others, but because the clrcum-
stances which surround them blind them
to the effect of the gold standard upon
others l shall ask you to consider the
language of two gentlemen whose long
public service and high standing in the
party to which they belong will protect
them from adverse criticism by our op-
ponents In 1869 Senator sherman saiS,;
1.-THE contraction of the currency Is far
more distressing operation than senators
suppose. Our own and other natlons
have gone through that operation before
IT Is not possible to take the veriage With
except a capitalist out of debt or sala-
ried officer or annuitant, it is period of
loss. danger, lassitude of trade, fall of
wages, suspension of enterprise, BANK
ruptcy and disaster. 1t means ruin to all
dealers whose debts are twice their busl-
ness capital though one-third less than
their actual property. 1t means the fall
of all agricultural production without
any great reduction of taxes. what pru-
dent man would dare to build a house a
railroad, a factory or barn with this
certain fact before him.
AS l said before, the salaried officer
referred to must be the man whose sal
ary is fixed for life, and not the man
whose salary depends upon business
conditions. When Mr.. Sherman describes
contraction of the currency as disastrous
to all the people except the capitalist
ont of debt and those who stand in a
position similar to his he is stating a
truth which must be apparent to every
person who will give the matter cafetul
consideration. Mr.. Sherman was at that
time speaking of the contraction of the
volume of paper currency, but the prin-
ciple which he set forth applies if there
is contraction of the volume OF stand
ard money of the world.
Mr.. Blaine discussed the same princi-
pie in connection with the demonetiza-
ton of silver. Speaking in the mouse or
representatives on February Z, 1878, he
said. 81 believe the struggle now going
on in this country and other countries
for a single gold standard would, II sue
cessful. produce widespread disaster in
and throughout the commercial world
The destruction of silver as money and
the establishing of gold as the sole unit
of value must have ruinous effect upon
all forms of property except those IN
vested which yield fixed return in
money. These would be enormously en-
HANGED in value and would gain dis
proportionate and unfair advantage over
every other species of property -
Is 1t strange that the 'holders of in
vestments which yield fixed return in
money can regard the destruction of
silver with competency? May we not
expect the holders of other forms of prop
erty to protest against giving to money
s'disproportionate and unfair advan-
tage over every other species of proper
tv?" If the relatively few whose wealth
consists largely in fixed investments
have a 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 disastrous consequences of rising
standard? The people who must pur-
chase money with the products of toll
stand in position entirely different
&C.,, 7stJ,aco sxph0, own. Or receive fixed,