The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-08-13
THE SALT LAKE HERALD THURSDAY, AUGUST 10. 1896.

!
compelled to withdraw their deposits
in order to pay living expenses. 1t is
only necessary TO note the increasing
number OF failures, in order to know
that gold standard is ruinous to mer
chants and manufacturers. These men
do not make their profits from the peo-
pie 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 merchants and manufacturers
must go into bankruptcy. Those who
hold as permanent investment the stock
of railroads and other euterprises-I do
not include those who speculate in
stocks, or use sIockholding as a means
of obtaining an inside advantage in
construction in contracts-are injured
by gold standard The rising dollar
destroys the earning power of these
enterprises without reducing their la
bilities, and as dividends cannot be
paid until salaries and fixed charges
have been satisfied, the stockholders
mus bear the burden of hard times.
Salaries in business occupations depend
upon business conditions, and the
GOLD STANDARD lessons THE
AMOUNT
and threatens the permanency of such
salaries.
Official salaries, except tine salaries
of those who hold Office for life, must,
in the long rum be adjusted to the con-
Of 1xyl7Jo
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 pro-
ducing classes, and can only enjoy pros
per.fy when there is prosperity among
those who create wealth. I have not
attempted to describe the effect of the
gold standard upon all classes; in fact,
1 have only had time to mention few
but each person will be able to apply
the principle stated to his own occupa-
ton. 1t must also be remembered that
it is the desire of the people generally
to convert their earnings into real or
personal property. This being true, in
considering any temporary advantage
whic! may come from a system under
which the dollar rises in its purchasing
power, it must not be forgotten that
the dollar cannot buy more than form
erly unless property sells for less than
formerly Hence lie will be seen that a
large portion of those who may find
some pecuniary advantage in a gold
standard will discover that
THEIR LOSSES EXCEED THEIR
GAINS.
1t is sometimes asserted by our OPP
ponemts 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 chat the
assets exceed liabilities. That is to
say, w4ile the bank owes a large
amount of money TO its dapositors, it
not only has enough on hand in money
and notes to pay Its deposleors, bUl. in
addition thereto has enough 10 cover its
capital and surplus. When the dollar
lie rising in value slowly, a bank may,
by making short time loans and TAX
ing good security, avoid loss, but when
prices are falling rapidly, ttle bank is
apt TO lose more because OF bad debts
than it can gain by Inc increase in
purchasing power of its capital and
sul13us.
1T must be admitted, however, that
some bankers combine the business of
a bond broker with the ordinary bank
ing business, and these may make
enough in the negotiation of the loans
banking business. AS long as human
nature remains as 1T is, there will al
ways be danger that, unless restrain
ed by public opinion or legal enact
menh, those who see 3
PECUNIARY PROFIT FOR THEM
SELVES
in a certain condition may yield to the
temptation to bring about that condl-
ton.
Jefferson has stated that ONE of the
main duties of government is to pre-
vent men from injuring one another,
and never was that duty more import
ant than it is today. 1t is not strange
that those who have made a profit by
furnishing gold to the government in
the hour of its extremity, favor a finan-
cial policy which will keep the gov
eminent dependent upon them. I be-
lieve, however, that 1 speak the senti-
menG of the vast majority of the peo-
pie of the United STAGES, when 1 say
that a wise financial policy, admins
tered in behalf of all the people would
make our government independent of
any combination of financiers, foreign
or domestic. Let me say a word now
in regard to certain persons who are
pecuniarily benefited by a gold stand
ard, and who favor it, not from de-
sire to trespass upon the rights of
which surround them blind them to
the effect of the gold standard upon
others. I shall ask you to consider 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. In 1869, Senator Sherman
said: The contraction of the currency
is a far more distressing operation than
senators suppose. Our own and other
nations have gone through that opera
ton before. 1t is rot possible to take
that voyage without the soresf dis /
t,-ass To ava1-v r,a,sOS, excent q carj- I