The River Falls times. [volume] (River Falls, Pierce County, Wis.) 1894-1933, 1896-08-18

fhe stockholders must bear the burden Of
hard times
Salaries in business occupations depend
upon business conditions, and the gold
standard both lessons the amount and
threatens the permaEency of such salaries.
Official salaries. except the salaries of those
who hold office for life, must in the long
run be adjusted to the conditions of these
who pay the taxes, and if the present finan-
ciaI policy continues, we mast expect the
contest between the taxpayer ana the tax
eater to increase in bitterness The profess
sional classes-in the main-recelve their
support from the producing classes ana can
only enjoy prosperity when there is pros
narity among those who create wealth.
have not attempted to describe the effect
of the geld standard upon all classes. In
fact, / have only had time to mention a
few but each person will be able to apply
the principles stated to his own occupation
1t must also be remembered that 1t is the
desire of people generally to convert their
earnings into real personal property.
This being true, in considering any tempo
rary advantage which may come from
system under which the dollar rises in its
purchasing power. it must not be forgotten
that the dollar cannot buy more than for
merly unless property sells for less than
formerly Hence, it will be seen that
large portion of those who may find some
pecuniary advantage in a gold standard Will
discover that their losses exceed their
gains.
1t is sometimes asserted by cur 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 that the assets exceed
the liabilities. That is to say, while the
bank owes large amount of money to its
depostors it not only has enough on hand
in money and notes to pay It's depostors,
but in addition thereto has enough to cover
its capital and surplus. When the dollar
o;e In 1I1n cir q
making short time loans and taking good
security avoid loss; but when prices are
falling rapidly the bank is apt to lose more
because Of bad debts than il can gain by
the increase i'll the purchasing power or
its capital 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 nego-
tiation of loans to offset the losses arising
in legitimate banking business. AS long az
human nature remains as it is, there will
always be danger that, unless restrained
by the public opinion or legal enactment.
those who see a pecuniary profit for them
selves in a certain condition may yield to
the temptation to bring about that condi-
ton. Jefferson has stated that one of the
main duties of government is to prevent
men from injuring one another, and never
was that duty more important than 1t is
to-day. 1t is not strange that those who
have made a profit by furnishing gold to
the government in the hour of its extremity
favor a financial policy which will keep
the government dependent upon them. Z
believe, however, that | speak the senti-
ment Of the vast majority Of the people OF
the United States when l say that wise
financial policy, administered in behalf or
the people, would make our government IN
dependent of any combination of hnanc;ers,
foreign or domestic.
Let me say a word, now, in regard to
certain persons who are pecuniariy bene-
flied by gold standard, and who favor it.
not from a desire to trespass upon the
rights of others, but because the circum-
stances which surround them blind them to
the effect of the gold standard upon others.
| shall ask you to consider the language
of two gentlemen whose long public sery-
ice and high standing in the party to " hich
they belong will protect them from adj
verse criticism by our opponents. In 1859
Senator Sherman said: 1.-THE contraction
of the currency is a far more distressing
operation than senator's suppose. Our own
and other nations have gone through that
operation before. It is not possible to take
that voyage without the sorest distress
To every person except a capitalist out of
debt a salaried officer or annuitant 1t
is period of loss, danger, lassitude of
trade, fall of wages, suspension of enter
prise, bankruptcy and disaster 1t means
ruin to all dealers whose debts are twice
their business 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, factory or a barn with this GER
tain fact before him?'
AS | have said before the salaried officer
referred to must be the man whose salary
Is hXed for life and not the man whose
salary depends upon business conditions
When Mr.. Sherman describes contraction
OF the currency as 6Tsastrous TO an the
people except the capitalist out of debt and
those WHO stand in position similar to his
he IS stating truth which must be an
parent to every person who will give the
matter careful considerations Mr. Sherman
was at that time speaking of the contrac-
ton Of the volume of paper currency. but
the principle which he set forth applies IL
there is contraction of the value of
standard money OF the world
Mr.. Blaine discussed the same primo Mo
In connection with the decentralization Of
silver. Speaking in the house Of represent
atlyes on the It'll of February, 1873 he said:
Il believe the struggle now going on in
TINS country and other countries for
single gold standard would. If successful
produce widespread disaster in and through
out the commercial world The destruction
OF silver as money and the establishing of
gold as the sole unit of value must have
rulnous effect on all forms Of property ex
cept those invested which yield fixed re.
turn in money. These would be enormous
~ enhanced in value and would gain a dis
proportionate and unfair advantage over
every other species of property" Is it
strange that the ''holders of investments
winch yield fixed return in money" can
regard the destruction of silver with com
placency? We may not exnect tho holders
OF other forms of property to protest
against giving to money Observation-Disclosures
and unfair advantage over every other
species of property?''
fIO