The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-08-13


tineness of the dollar, invest it with
legal tender qualities and then ex-
tends the mints to it's unlimited coin
age, the purchasing power of the dol
lar to be determined by the number of
dollars. Bi-metallism is better than
monometallism, not because it gives
us perfect dollar-that is, dollar
absolutely unvarying in it's general
purchasing power-but because it
makes nearer approach to stability
to honesty, to justice, than n gold
standard possibly can.
Our opponents some times admit
that it was mistake to demOnetize
silver, but insist that we should sub
NIT to present conditions rather than
return to the bi-metallic system. They
err in supposing that we have reached
the end of the evil results of a gold
standard; we have not reached the
end. The injury is a continuing one
and no person can say how long the
world is to suffer from the attempt
to make gold the only standard money.
$50 long as the scramble for gold
| continues, prices must fall, and a gem
| cral fall in prices is but another de-
linition of hard times.
GOLD AND THE FARMER.
The farmers are opposed to the
! gold standard because they have felt
| it's effects. Since they sell at whole
sale and buy at retail they have lost
more than they have gained by falling
| prices and besides this, they have
| found that certain fixed charges have
not fallen at ALL Taxes have not been
perceptibly decreased although it re-
| quires more of farm products now
| than formerly to secure the money
with which to pay taxes. Debts have
| not fallen. The farmer who owed
| 81 900 is still compelled to pay 81 900,
although it may be twice as difficult
as formerly to obtain the dollar with
which to pay the debt. The wage
earners have been injured by a gold
standard and have expressed them
emphasis. ~
"The farmers and wage-earners to-
gether constitute a considerabl ble ma
| jOrity of the people of the country.
| Why should their interests be ignored
in considering financial legislation?
a monetary system which is pecuni-
arily advantageous to few syndicates
has less to commend it than a system
which would give hope and encourage
ment to those who create the nations
wealth.
Our opponents have made special
appeal to those who hold fire and life
insurance policies, but these policy
holders say that since the total premi-
ums received exceed the losses paid,
a rising standard must be of more ben
eft to the companies than to the pol
icy holders.
ALL CLASSES SUFFER.
Much solicitude has been expressed
by our opponents for the depositOrs
in savings banks. They constantly pa
rade before these depOsitOrs the ad-
vantages of gold standard, but these
appeals will be in vain, because savings
bank depositors know that under a
gold standard there is increasing dam
ger that they will lose their deposits
| because of the inability Of the banks
TO collect their assets; and they still
further know that, if the gold stand
ard is to continue indefinitely they
may be compelled TO Withdraw their
deposits in order to pay living eNpen-
ses.
SeS.
1T is only necessary to note the in
creasing number of failures in order to
|, know that a gold standard is ruinous
to merchants and manufacturers. The
business men do not make their profits
from the people from whom they bOr-
row money, but from the people to
whom they sell their goods. If the
people cannot buy, retailers cannot
sell, and if retailers cannot sell, whole
sale merchants and manufacturers
must go into bankruptcy.
Those who hold as a permanent
investment the stock Of railroads and
of other enterprises do not include
those who speculate in stocks or use
stock holdings as means of obtaining
inside advantage in contracts-are in
jured by gold standard. The rising
dollar destroys the earning power Of
these enterprises without reducing
their liabilities, and as dividends can
not he paid until fixed charges have
been satisfied, the stockholders must
bear the burden of hard times.
cit is sometimes asserted by our OPP
ponents that a bank belongs to the
debtor class, but this is not true of any
solvent bank. Every statement pub
lished by a solvent bank shows that
the assets exceed the liabilities. That is
to say while the bank owes a large
amount of money to it's depositors it
not only has enough on hand in money
and notes to pay its depositors, but
IN addition thereto, has enough to COW
er its capital and surplus. When the
dollar is rising in value slowly, bank
may, by making short time loans and
taking good security, agoid loss, but
when prices are falling rapidly, the
bank is apt to lose more money, be-
cause of bad debts than it can gain
by the increase in purchasing power
of its capital and surplus.
''It must be admitted, however, that
some banks combine the business of
bond broker with ordinary banking
business and these may make enough
in the negotiation of loans to offset
the losses arising in legitimate bank
ing business. As long as human ma
ture remains as it is there will always
be danger that, unless restrained by
the public opinion or legal enactment,
those who see pecuniary profit for
themselves, in a certain condition may
yield to the temptation to bring about