The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-08-22

The farmers are opposed to the gold stand
ard because they have felt its effects. Since
they sell at wholesale and buy at retail they
have lost more than they have gained by fall
ing prices, and besides this they have found
that certain fixed charges have not fallen at
all. Taxes have not been pereeptibly de-
creased, although it requires more of farm
products now than formerly to secure the
money with which to pay taxes. Debts have
not fallen. The farmer who owned $1,000 is
still compelled to pay $1,000, although it may
be twice as difficult as formerly to obtain the
dollars with which to pay the debt. Railroad
rates have not been reduced to keep pace with
falling prices, and besides these items there
are many more. The farmer has thus found
it more and more difficult 10 live. Has he
not just complaint against the gold standard
The wage earners have been injured by a
gold standard and have expressed themselves
upon the subject with great emphasis.
GOLD DOLLAR AID THE WAGE FARMERS.
In February, 1895, petition asking for
the immediate restoration of the free and UNI
limited coinage of gold aud silver at l6 to
was signed by the representatives of all, or
nearly all, the leading labor organizations and
presented to Congress. Wage-earners know
that while gold standard raises the purchas-
ing power of the dollar it also makes il more
difficult to obtain possession of the dollar.
| They know that employment is less permanent,
loss of work more probable and re-employ-
ment less certain. A gold standard encour-
ages the boarding of money because money is
rising 1t also diScourages enterprise and
paralyzes industry On the other hand, the
restoration of bimetallism will discourage
boarding because, when prices are steady or
| rising money cannot afford to lie idle in the
bank vaults. The farmers and wage-earners
together constitute considerable majority of
the people of the country. Why should their
interests be ignored in considering financial
legislation? A monetary system which is pc
cuniarily advantageous to a few syndlcates has
Tar less 10 commend it than a system which
would give hope and encouragement TO those
who create the nations wealth.
LIFE AND FIRE INSURANCE POLICIES.
Our opponents have made special appeal
to those who hold fire and life insurance poll
cies, but these polcyholders know that, since
the total premiums received exceed the total
losses paid, a rising standard must be of more
| benefit to the companies than to the policy
| holders.
SAVINGS BANK DEPOSITS.
Much solicitude has been expressed by our
opponents for the depositors in savings banks.
They constantly parade before these deposit
ors the advantages OF a gold standard, but
| these appeals will be in vain, because savings
| Dlnk utlDSIlOTS hNOM iildi uUutT II gnu Stdu-
dard there is increasing danger 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 standard is
| to continue indefinitely, they may be com
PEELED to withdraw their deposits in order TO
pay living expenses 1t is only necessary to
note the increasing number of failures in or
der to know that a gold standard is ruinous
to merchants and manufacturers. These bus
mess men do not make their profits from the
people from whom they borrow money, but
from the people to whom they sell their goods
If the people cannot buy, retailers cannot SELL
and if retailers cannot sell wholesale mer-
chants and manufacturers must go into bank
ruptcy.
EFFECT on PERMANENT INVESTMENTS.
Those who hold as a permanent investment
the stock of railroads and of other enterprises
i do not include those who speculate in
stocks or use stock holdings as means of OBJ
tanning an advantage in construction con
tracts-are injured by a gold standard. The
rising dollar destroys the earning power of
these enterprises without reducing their La
bilties. 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 de-
pend upon the business conditions, and the
gold standard both lessons the amount and
threatens the permanency of such salaries.
THE sALARIED CLASS.
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 finan-
cial policy continues we must expect the con-
test between the taxpayer and the taxeater to
increase in bitterness.
Professional classes-in the main-derive
their support from the producing classes, and
can only enjoy prosperity when there is pros
perity 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 princi-
pies to his own occupation.
1t must also be remembered that it is the
desire Of people generally to convert their
earnings into real or personal property. This
being true, in considering any temporary adj
vantage which may come from a system un-
der which the dollar rises in its purchasing
power, it must not be forgotten that the dol
lar cannot buy more than formerly, unless
property sells for less than formerly. Hence.
it will be seen that a large portion of those
who may find some pecuniary advantage in
gold standard will discover that their losses
exceed their gains.
BANKS AS CREDITORS.
1t is sometimes asserted by our opponents
that bank belongs TO the debtor class, but
that is not true of any solvent bank. Every
statement published by u solvent bank shows
that the assets exceed the liabilities. That is
to say, while the bank owes large amount
of money to its 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 4ha Anilae - PIC cIo,rlr
bank may, by 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 it can
gain by the increase in the purchasing power
of its capital and surplus
DUTY OF GOVERNMENT.
1t must be admitted, however, that some
bankers combine the business of a bond bro
ker 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 nature re-
mains as it is there will always be danger
that, unless restrained by the public opinion
or legal enactment, those who see a pecunary
profit for themselves in certain condition
may yield to the temptation to bring about
that condition. Jefferson has stated that one
Of the main duties of the Government is 30
prevent men from injuring one another, and
never was that duty more important than it is
today. 1t is not strange that those who have
made profit by furnishing gold to the Gov
eminent in the hour Of its extremity favor
financial policy which win keep the Govern
ment dependent upon them. believe, how.
ever, that speak the sentiment of the vast
majority of the people of the United States
when | say that a wise financial policy ad-
ministered in behalf of all the people would
make our Government independent of any
combination of ianciers, foreign or domestic.
A CONTRACTED CURRENCY.
Let me say word now in regard to certain
persons who are pecuniarily benefited by a
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 stan
dard upon others. | shall ask you to consid-
er 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 opponents.
SENATOR sHERMAys VIEWS.
In 1869 Senator Sherman said: "The con-
traction tf the currency is a far moro DISTRESS