The evening bulletin. [volume] (Maysville, Ky.) 1887-1905, 1896-08-15

enterprises-I do not include those who
| speculate in stocks, or use stock holdings
As a means of obtaining an inside advan-
| tage in construction contracts-are injured
by gold standard. The rising dollar de-
stroys the earning power of these enter
prisCs without reducing their liabilities,
and as dividends cannot be paid until sal
aries and fixed charges have been satisfied,
the stockholders must bear the burden of
hard times.
| Salaries in business occupations depend
upon business conditions, and the gold
standard both lessons the amount and
threatens the permanency of such sala-
| ries.
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 taxes, and If the present
financial policy continues we must expect
the taxpayer and the taxeater 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.
have not attempted to describe the eff
feet of the gold standard upon all classes
in fact, have only had time to mention a
few-but each person will be able to apply
the principles stated to his own occupa
| ton.
1t must also be remembered that it is
the desire of people generally to convert
their earnings into real or personal prop
erty. This being true, in consideration
of any temporary advantage which may
come from system under which the dol
lar rises in its purchasing power, 1t must
not be forgotten that the dollar can not
buy more than formerly, unless property
sells for less than formerly Hence IL
will be seen that large portion of those
who may find some pecuniary advantage
in u gold standard will discover that
their losses exceed their gains.
1t Is some times asserted by our OppO-
nents that bank belongs to the debtor
class, but this Is not true of any solvent
| bank. Every statement published by "a
solvent bank shows that the assets exceed
the liabilities That is to say, while the
bank owes large amount of money TO its
depositors 1t not only has enough on hand
in money and notes TO pay its depositors
but, in addition thereuntO, has enough ~
cover its capital and surplus. When the
dollar Is rising in value slowly, 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 sur
plus
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 IL Is,
there Will always be danger that, unless
restrained by the public opinion, or legal
| enactment, those who see pecuniary
profit for themselves in certain condition
may yield to the temptation TO bring
about that condition. Jefferson has stated
that one of the main duties of govern
| nnt l. 70
another, and never was that duty more
important than it is to-day. 1t is not
strange that those who have made profit
by furnishing gold to the government in
its hour of extremity favor financial
policy which will keep the government
dependent upon them. l believe, how
ever, that l speak the sentiments of the
vast majority of the people of the United
| States when / say that n wise financial
policy administered in behalf of all the
people would make our government ind1-
pendent Of any combination of financier5,
foreign or domestic.
Let me say word now in regard TO
certain persons who are pecuniarily bene-
flied by gold standard, and who favor II.
not from desire to trespaSs upon the
rights of others, but because the circum-
stances which surround them bind them
to the effect of the gold standard upon
others / shall ask you to consider the
language of two gentlemen whose long
public service and high standing i'll the
party to which they belong will protect
them from adverse criticism by our oppO
nents. In 1859 Senator sherman SAID;
"The contraction of the currency Is
far more distressing operation than SEN
ators suppose Our own and other ma
tions have gone through that operation
before. 1t Is not possible to take thar
voyage without the sorest distress. To
every person. except capitalist, out of
| al a soil oil az ~
is u period of loss, danger, lassitude Of
trade, fall of wages, suspension of enter
prise, 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 any great reduction of taxes
What prudent man would dare TO build II
house, q railroad II factory or barn with
this certain fact before himY Fl"
AS have said before, the salaried Of
ficer referred TO must be the man whose
salary is fixed for life and not the man
whose salary depends upon business con
ditions. When Mr.. Sherman describes
contraction of the currency as disastrous
to all the people, except the capitalist out
of debt and those who stand in position
similar to his, he Is stating truth which
must be apparent to every person who
will give the matter careful consideration.
Mr. Sherman was at that time speaking
of the contraction of the volume of paper
currency, but the principle which he set
forth applies if there is a contraction Of
the volume of the standard money of the
world.
Mr.. Blaine discusses the same principle
In connection with the demonetiZation Of
silver. Speaking in the House of Repre-
sentatives on the h of February, 1878, he
says 81 believe the struggle now going
on in this country and other countries for
a single gold standard would, if success
full, produce widespread disaster in and
throughout the world. The destruction
of silver as money and the establishing of
gold as the sole unit of value must have a
ruinous effect on all forms of property eX-
hns inunStnh ,rthinh ,rinlH a HXnd FL