The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-13

dueing their liabilities, and as dividends
cannot be paid until salaries and fixed
charges have been satisfied, the stockholders
must bear the burden of hard times.
Salaries in business occupations depend
upon business conditions, and the gold stand
ard both lessons the amount and threatens
the permanency 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 those who pay
the taxes, and If the present financial policy
continues, must expect the contest be-
tween the taxpayer and the taxeater to in
crease in bitterness The professional classes
in the main-receive their support from the
producing classes, and can only enjoy pros
perity when there is prosperity among those
who create wealth. | 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 will be able
to apply the principles stated to his own
occupation. 1T must also be remembered that
it is the desire of the people generally to
convert their earnings into real or personal
property. This being true, in considering
any temporary advantage which may come
from system under which the dollar rises
in its purchasing power, it must not be for
gotten that the dollar cannot buy more than
formerly unless property sells for less than
formerly. Hence, it will be seen that large
cuniary advantage in gold standard will
discover that their losses exceed their gains.
BANKS NOT DEBTORS.
1t is sometimes asserted by our opponents
that a bank belongs to the debtor class, but
this is not true of any solvent bank. Every
statement published by a solvent bank shows
that the assets exceed the liabilities. That
is to say. while the bank owes large amount
of money to the depositors, it not only has
enough on hand in money and notes to pay
its depositors, but in addition thereto has
enough to cover its capital and surplus.
When the dollar is rising in value slowly
bank may, by making short time loans and
taking good security avoid loss; but when
prices falling TaDi0lV.
to lose more because of bad debts than it
can gain by the increase in the purchasing
power of its capital and surplus 1t must be
admitted, however, that some bankers COM
bine the business of bond broking with the
ordinary banking business, and these may
make enough in the negotiation of loans to
offset the losses arising in legitimate banking
business. As long as human nature remains
as 1t is, there will always be danger that
unless restrained by the public opinion or
legal enactment-those who see a pecuniary
profit for themselves in a certain condition
may yield to the temptation to bring about
that condition. Jefferson has stated that one
of the main duties of government is to pre-
vent men from injuring another and
never was that duty more important than it
is today. 1t Is not strange that those who
have made a profit by furnishing gold to the
government In the hour Of its extremity, ia
vor a financial policy which will keep the
government dependent upon them. I be-
lieve, however. that I speak the sentiment
of the vast majority of the people of the
United States when say that wise financial
policy administered in behalf of all the peo-
pie would make our government independent
of any combination of f1nanciers, foreign or
domestic.
Let me say a word, now, in regard to GER
tain persons who are pecuniarily benefited
by gold standard. and who favor it, not from
desire to trespass upon the rights of others
but because the circumstances which surround
them blind them to the effect of the gold
standard upon others. I shall ask you to con-
slider the language Of two gentlemen whose