St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1896-08-28
Good Advice for Timid People.

well-known dealers in bonds and
other securities, have issued the fol-
lowing letter on the present financial
situation:
Owing to the fear that the free
silver principles and declarations of
the Chicago platform may be carried
into effect, there seems to be a ten
dency on the part of some people
having money at interest or on
deposit, to either collect the same
andlock it upln safety deposit boxes,
or make some investment Of this
money that will be payable in gold.
We believe this fear is entirely
uncalled for. We have absolute con-
fdence in the election Of Mr.. Nc.
Kinley and that this country will
retain its present gold standard.
For those who think differently,
however, we suggest a careful
perusal of the following:
Money withdrawn from invest
ments comes first or last from the
banks, and generally in forms of
currency other than gold. Unless
this money can be converted into
gold, it would be of no more advan-
tage to the owner after it's with.
drawal than it was before. If all
money except gold depreciates, it
will depreciate just as much in the
safety deposit box Of the individual
as in the vault OF the bank. While
the money is in the hands of the
bank, it is drawing an income to it's
owner, directly or indirectly; where.
as, if locked up in safety deposit
boxes, all interest ceases. The lock-
ing up of money in this way tends to
retard business and is general
cause of hard times.
The question therefore arises as to
a way OF investing money so that it
will be repaid in gold. 1t is difficult
to lease property with the rental
payable in gold. 1t is difficult
to loan money to an individual and
secure a note payable in gold. The
only distinct classes OF gold obliga-
tons existing at this time are the
bonds of municipal and private cor
porations, which have for years past,
to greater or less extent, been made
payable in gold coin of the United
States.
Aliberal purchasing Of these securi,
ties by investors would not only be
good stimulus to business, but
would enable those who fear tina,
the country is going on a silver basi.
to protect themselves. The invest
ment in these securities would have
no bad effect on the general condi
ton of the banks, for whatever is
drawn from one bank and invested
through responsible banking house
Immediately finds lodgment il
another bank, and the total amount
of money in use is not disturbed, as
is the case where currency is with
drawn and laid away in safety
deposit boxes,
1t seems to us that it is extremely
unwise and disturbing for saving;
bank depositors to withdraw their
money for the purpose of locking il
up, In the case OF large depositorS
in such institutions we certainly fee
that they are simply contributing tC
the causes which are now operating
to create financial unrest. In the
case OF small depostors, whatever
happens it should be very clear
that money left in the hands of our
old and strong savings banks woulc
be much better taken care of than il
would be in the hands of people
unaccustomed to the handling o
money, We feel it to be the duty o
every good, conservative citizen t,
do his share in impressing saving!
bank depositors with this idea.