The Irish standard., 1896-08-15

!! rients that bank belongs to the debtor
class, but this is nat true of any solvent
bank. Every statement published by q
solvent bank shows that the assets ex-
coed the liabilities. That is to say, while
| the bank owes large amount Of money
! to its depositors 1t not only has enough on
| hand in money and notes to pay its de-
pOsttors, but in addition thereto has
! 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 the bank
| is apt to lose more because Of bad debts
| than it can gain by the increase in the
j purchasing power of it's capital and sur
! plus.
bankers combine the business of bond
broker with the ordinary banking BUSH
! ness, ard 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 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
that condition. 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 it is today. 1t is not strange that
| those who have made profit by furnish
ing gold to the government in the hour of
| its extremity favor a financial policy
which will keep the government depend
ent upon them. I believe, however. that
speak the sentiment of the vast majority
of the people of the United States when I
say that wise financial policy, admin
istered in behalf Of the people, would
make our government independent Of any
combination of financiers, foreign or do
nestle.
Let me say word, now, in regard to
certain persons who are pecuniarily bene-
flied by gold standard, and who favor 1t,
not from 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 9th
ers. I shall ask you to consider the Ian
guage Of two gentlemen whose long pub
lie service and high standing in the party
to which they belong will protect them
from adverse criticism by their opponents.
In 1869 Senator Sherman said: "The con-
traction of the currency is a far more
distressing operation than senators sup
pose. Our own and other nations have
gone through that operation before. 1t is
not possible to take that voyage without
the sorest distress. To every person ex-
cept a capitalist out Of debt, Or salaried
officer or annuitant it is period OF loss,
danger. lassitude of trade, fall Of wages,
suspension of enterprise, bankruptcy ana
disaster. 1t means ruin to all dealers
whose debts are twice their business CAPT.
tai, though one-third less than their act
ual property. 1t means the fall of all
agricultural production without any great
reduction of taxes. What prudent man
would dare to build house, railroad,
factory or a barn with this certain fact
before him?"
AS 1 have said before, the salaried Off
Ger referred to must be the man whose
salary is fixed for life, and not the man
whose salary depends upon business
contraction of the currency as disastrous
to all the people except the capitalist out
Of debt and those who stand in a position
similar to his, he is stating truth which
must be apparent to every person who will
give the matter careful consideration.
Mr.. Sherman was at that time speaking
of the contraction of the olume of paper
currency, but the principle which he set
forth applies If there is a contraction Of
the volume of
STANDARD MONEY OF THE WORLD.
Mr.. Blaine discussed the same principle
in connection with the demonstration of