The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-08-23
FISH, FRUIT AMID TRUCK ElT07~EA@TERN GAR0LlNA

gether constitute considerable ma
3orpty Of the people Of the country.
Why should their interests he ignored
in considering financial legislationP
A monetary system which is pecuni-
ari1y advantageous to a 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 "A special
appeal to those who hold fire and life
insurance policies. but these policy
holders say that since the total premE-
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 adj
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 viii 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
NAV lie compelled to Withdraw their
deposits in order to pay living eXpen-
seq.
1T is only necessary to note the i'm,
creasing number of failures in order to
know that a gold standard is ruinouK
to merchants and manufacturers. The
business men do not make their profits
e, hnf hax
row money. but from the people ~
whom they sell their goods If thu
! PEOPLE cannot buy, retailers cannor
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 ana
+ Of o,her enterprises do not include
those who speculate in stocks or use
stock holdings as a means of obtaining
+ inside advantage in contracts-are in
iured by gold standard. The rising
dollar destroys the earning power OF
/ these enterprises without reducing
their liabilities. and, as dividends cam
not he paid until fixed charges have
been satisfied. the stockholders musI
bear the burden of hard tines
J Salaries in business occupations de-
pend upon business conditions, and
/ the gold standard both lessons the
amount and threatens the permanent
cv 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 tax
es, and if the present financial policy
continues we must expect the contest
between the taxpayer and the tax
eater TO increase in bitterness.
"The professional classes-in the
main-derive their support from the
producing classes, and can only enjoy
prosperity when there is prosperity
among those who create wealth.
IT have not attempted to describe the
, effect of the gold standard upon all
classes fact. I have only had time
To mention few-but each person
viii be able to apply the principles
stated to his own occupation.
1T must also be remembered that it
is the desire OF people general-
ly to convert their earn
ings into real or personal property.
This being true, in considering any
temporary advantage which may coms
from a system under which the dollar
rises in its purchasing power, it must
not be forgotten that the dollar cannot;
buy more than formerly, unless prop
erty sells for less than formerly. Hence,
it viii be seen that large portion of
those. who may find some pecuniary
advantage in n gold standard viii dis
cover their losses. exceed their gains
1T 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 q solvent bank shows thas
the assets exceed the liabilities That ia
to say while the bank owes large
amount Of money to its depositors id
not only has enough on hand in money
and notes to pay its depositors, but
tradition thereto, has enough to COW
err it's capital and surplus. When the
dollar is rising in value slowly, bank
may, by making short time loans ana
taking good security, avoid, loss, but
when prices are falling rapidly, the
bank is apt to lose more money, be-
cause of bad debts than il can gain
by the increase in purchasing power
of its capital and surplus.
at must be admitted, however, that
some banks combine the business Of q
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 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 govern
nsent is to prevent men from injuring
one another and never was that duty
more important than to-day 1t is not
strange that those who have made
profit by furnishing gold to the gov
eminent in the hour of it's extremity
favor a financial policy which will
keep the government dependent upon
them. | believe, however, that I speak,
the sentiment Of the vast majority OF
the people of the United States when
| say that wise financial policy adj
Ya,inictprpJ iTF- bahaIf ~ al +bo v.rCrTe.