Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1896-08-20
WOODBURY., N. J, THURSDAY, AUGUST 20 1896


tive JAcT support from Uhe producing
classes and can only enjoy prosperity when
there is prosperity among those who create
wealth.
have not attempted To describe the Ell
feet Of the gold standard upon all classes
in fact, have only had time to men
tion few-but each person will be able to
apply the principles stated to his own Oc-
cupati0n
IL must also be remembered that it IL the
desire Of people generally to convert their
earnings into real or personal property
This being true, in considering any TEN
porary advantage which may come from a
system uEder which the dollar rises III its
purchasing power it must not De forgot
ten that the dollar cannot buy more than
formerly unless property sells for less than
formerly. Hence it viii be seen that Il
large portion Of those who may find some
pecuniary advantage in gold standard
Will discover that their losses exceed their
gains
IL IS sometimes asserted by our oppO-
nents that bank belongs To the debtor
class, but this j. not true Of any solvent
bank. Every statement published by
solvent bank shows that the assets exceed
the labilities-that IL To say while the
bank owes large amount of money to its
depositors it not only has enough on
hand in money and notes to pay its depos-
itors, but in addition thereto has enough
to cover its capital and surplus. When the
dollar il 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 purchasing
power Of its capital and surplus
1t must be admitted, however, that some
bankers combine the business of a bond
broker with the ordinary banking bust
ness, and 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 il
there will always be danger that, unless
restrained by public opinion Or legal en-
actment, those who see a pecuniary profit
for themselves id L certain condition NAV
yield to the temptation to bring about that
condition. jefferson has stated that one
OF the main duties Of government il 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 furnishing
extremity favor a financial policy which
will keep the government dependent uPon
them i believe, however, that / speak the
sentiment Of the vast majority Of the peo-
pie Of the United States when ! say that
wise financial policy administered in be-
half Of all the people would make our gov
ernment independent Of any combination
Of finaneiers, foreign or domestic.
Contraction Of the Currency.
Let me say word now in regard to Ger
tain persons who are pecuniarily benefited
by gold standard, and who favor IL not
from desire to trespass upon the rights Of
others, but because the circumstances which
surround them blind them to the effect Of
the gold standard upon others. / shall ask
you to consider the language Of two gentle
men 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 Sher-
man said: 1.-THE contraction Of the cur
rency il far more distressing operation
than senators suppose. Our own and
other nations hnve gone through that oper-
alton before. 1t is not possible to take that
voyage " itaout the snrest distress To ev-
cry person, except a capitalist out Of debt
or a salaried officer or annuitant, it is d
period of loss, danger, lassitude Of trade,
fall of wages, suspension of enterprise
bankruptcy and disaster 1t means ruin to
all dealers whose debts are twice their
business capital, though one-third less
than their actual property. 1t means the
fall Of all agricultural production without
amy great reduction Of taxes What pru
dent man would dare to build house,
railroad, a factory or barn with this GER
tain fact before himg'' As have said be-
fore, the salaried officer referred to must
be the man whose salary is fixed for life
and not the man whose salary depends
upon business conditions. When Mr. Sher-
man describes contraction Of the currency
as disastrous to all the people except the
capitalist ont of debt and those who stand
in position similar to his, he il stating d
truth which must be apparent to every per
son who will give the matter careful con
sideratiOn. Nr. Sherman was at that time
speaking of the contraction of the volume
Of paper currency but the principle which
be set forth applies If there il contrac-
tion of the volume of the standard money
Of the world.
Mr.. Blaine discussed the same principle
in connection with the demonstration Of
silver. Speaking in the house Of represent
atiyes on the 7th Of February, 1878, he
said: III believe the struggle now going on
in this country and other countries for a
single gold standard would, If successful,
produce widespread disaster in and
throughout the commercial world. The
destruction of silver as money and the
establishing Of gold as the sole unit Of
value must have ruinOus effect on all
forms Of property except those invested
which yield fixed return in money These
would be enormously enhanced in value
and would gain disprOportiOnate and
unfair advantage over every other species
Of property. Is it strange that the hold
ers Of investments which yield a fixed re-
turn in money can regard the destruction
Of silver with complacency? May We not
expect the holders Of other forms OF prop
erty TO protest against giving to money a
"disproportionate and unfair advantage
over every other species Of property" If
the relatively few whose wealth consists
largely in fixed investments have right
to use the ballot to enhance the value Of
their investments, have not the rest Of the
people the right to use the ballot to pro
tect themselves from the disastrous conse-
quences Of d rising standard? The people
who must purchase money with the prod
ucts Of toll stand in position entirley diff
ferent from che position Of those who own
money or receive fixed income. The well
being of the nation-aye, of civilization it,
self-depends upon the prosperity OF the
masses. What shall it profit Us to have
dollar which grows more valuable every
day il such dollar lowers the standard OF
civilization and brings distress to the peo-
pie? What shall 1t profit US if in trying to
raise our credit by increasing the purchas-
ing power Of our dollar we destroy our
ability to pay the debts already contracted
by lowering the purchasing power Of the
products with which those debts must be
paid? If it is asserted, as it constantly is
asserted. that the gold standard will en-
able MS to borrow more money from abroad,
l reply that the restoration Of bimetallism
will restore the parity between money and
property, and thus permit an era Of pros
perity which .Yin enable the American
people to become loaners Of money instead
Of perpetual borrowers. Even il we desire
to borrow how long can we continue bor
rowing under system which, by lower
ing the value Of property, weakens the
foundation upon which credit restss
Even the holders Of fixed investments,
though they gain an advantage from the
appreciation Of the dollar, certainly see the
injustice OF the legislation which gives
them this advantage over those whose in
comes depend upon the value of property
and products If the holders OF fixed in
yestments will not listen to argu1rents
based upon justice and equity, / III to