Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-08-03
THE FINANCIAL QUESTION 4
More in Relation to Free Coinage and
The NagG-EarnGrs. ii, lit.
EXTRACTS FROM SECRETARY CARLISLES SPEECH
How Past Earnings in Banks and Insurance Companies
Are Involved ....-..


property. 1t is useless for you and me or
anybody else to say that depositors in
banks and other creditors ought not to
pursue this course when a crisis comes. or
Is apprehended, for they always have pur-
sued 1t. and always will, unless human ma
ture itself should be changed"
The Recent Crisis.
Less than three years ago you saw orr
financial, commercial and Industrial affairs
violently disturbed by the fear that the
government would not be able to maintain
gold payments, and that our currency would
descend to silver basis. You saw the
operations of industry interrupted. banks
railing. great commercial houses unable tn
meet their obligations. credit seriously i'm
PAIRED mus and factories closed and thou
SANDS or laborers thrown out of employ-
ment, and state of panic and busiut 50
disorder prevailing in every part of the
country. If mere doubt as to the kind of
to.,ey we INTENDED TO use produced these
distressing results, what think you would
De the probable consequences of delibe-
rate determination upon the part of our
people to adopt silver monometallism as a
permanent system?
The imagination can scarcely con,o,,,o
the depiorable state Of society that would
Immediately follow the announcement ~
such policy. and l will not attempt to
n
the closing years of the nineteenth century
and IN this great and free republic the peo-
pie themselves will initiate the bad exam
pies set by the corrupt potentates of FIJI
rope, VINO nave made their names forever
odlous in history by debasing the money of
their subjects end robbing the industrious
poor OF the just rewards Of their labor
Inc greatest crime.s short Of absolute DO
. , enslavement.' that could be commit
ted against the workingman in this coun-
try would be to confiscate his labor for the
dement, OF the employer by DESTROYING the
Vaiue or the money in which his wages are
PAID. But, gentlemen, this irreparable
wrong can never be 'perpetrated under our
system OF government unless the laborinu
man himself assists tn forging his own
chains ~ VIVA
Mr.. Bartine's Views.
One OF the monographs issued by the
American Bimetallic Union bears upon this
topic OF wage carriers savings It was
written by H. F. Bartine who says:
The goldite is always distressed at the
thought Of the poor hod carrier Or the poor
washerwoman who has 800 or $500 in the
bank having 1t scaled, down in value by
the free coinage of silver.
Why, be. says, If moneytjs made %
per cent cheaper. the $500 will only be
$780,
IF anybody thinks that the chambers of
bankers of the world are opposing the free
coinage OF silver in the interest of the
washerwoman. he must be credulity itself.
This objection Is easily met In the first
place. comparatively few laborng men and
women have any deposits In bank and
they are constantly becoming relatively
fewer. Those who have are exceptionally
iortunate. Just now a very large proper
ton OF the laboring men Of the country are
looking rather anxiously for work with
winch to provide themselves with the bare
necessaries of life.
Secondly. 1t must be remembered that
500 or $500 in bank is but very small
Item IN the economy Of a workingman's
life. What he needs is steady work at
good wages. Let us do a little figuring
Suppose he has $500 in bank and Is working
at 81 day. Suppose, further that IN con.
sequence OF the low price of the product the
factory In which he is employed is on short
time. and he has to lose one day in each
week. In a year he is short S1O4 on wages
account. Suppose prices go a little lower
ana the factory closes entirely. He gets no
wages at all. How long will MS $500 last ?
Not very long, we may be sure.
NOW take the opposite condition. Sup
| pose. as before he has $500 in bank. Times
are dun. and he is losing day each week
say $lO4 in year. Silver Is remonetized,
and money becomes 25 per cent cheaper
his deposit shrinks to 1928. in purchasing
power He loses $75. But this means higher
prices for goods. His factory starts up in
1uil blast and he works every day. In a
year the extra time amounts to $1O4. He
IS ~ anead But with the increased de-
mand Tor labor wages are certain to RISE
Keeping within bounds, let US suppose that
70 cents day are added to his wages. This
amounts to $1S year. When the whole
account is balanced at the end Of the year
ana gained $ls2 in wages, so that he is SLOT
better on But this Is not all. The sum
total Of his loss on the deposit is SIS.
ne does not lose anything on that ac-
count the next year. but his increased
earnings go right on, and the second year
ne Is VS. ahead. Under the changed con-
o a ne would be better off without the
$'oo deposit than he was before with it.
II would take but little over two years
Ior the increase of his earnings to amount
10 more than the entire deposit.
Inc Workingman's capital Is his capacity
LOT Ianor, and his interests are on the side
always bring his labor into greater de-
mand.
Going step farther, it may be laid as
an axiom that approaching money (Which
means 1alilng pricesj is always productive
of business depression and hard times
While, within the limits Of moderation de-
preclating money (Which means rising
prices invariably stimulates business enter
PRISE ana leads to general prosperity"
swindling the Creditor With Cheap
/! Money.
Continuing Mr.. Bartlne says: '"The al
ieeeo S"lHuiiuB OF tne 'cfeQlt6 with cheap
money is the string most played upon by
the gold standardist' and upon the whole it
has perhaps had more effect than any other
point made. The people are generally hon
est, and appeals to Their integrity on behalf
Of honest money and the honest payment
influence s.V
1T must be conceded at once that, as
nearly :, as possbles every honest debt
81 with 80 cents is CONTRARY to every prin-
ciple Of Justice. t. is'l equally wrong to
force the payment OF 81 debt with 81,
with this addition, that compelling the debt
or 10 pay at the rate of 81 for 81 does in
nnltely more harm than to allow him to
pay 81 with 80 cents, because it grievously
Expresses the debtors who are least able to
stand it. But as nearly as possible absolute
justice should be done, and every debt
should be paid according to the equity Of
the contract
The weakness Of this argument lies IN
the fact that it assumes the gold dollar to
be an horst dollar, and that every debtor
Is bound to pay in gold or its equivalent.
1t completely ignores the very essence of
the whole controversy, namely, that gold
has nearly doubled in exchange value dur
Ing tho. last twenty-five years, and that