Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1896-08-20

It's policy holders.
"Much sollcitude has been express
ed by our opponents for the deposits
ors in savings banks. They constantly
parade before these depositors the ad-
vantages of a gold standard, but these
appeals will be in vain, because saw
ings bank depositors know that under
gold standard there ia increasing
danger that they will lose their de-
posts because of the inability Of the
banks to collect their assets; and they
still further know that il the gold
standard is|to continue indefinitely,
they maybe compelled to withdraw
their deposites in order to pay living
expenses.
ut ID only necessary to note the ln-
creasing number Of failures in order
to know that a gold standard is ruin
GUS 10 merchants and manufactures.
These business men do not make their
profits from the people from whom
they borrow money, but from the peo-
Pile to whom they sell their goods. II
Che people'cannot buy retailers cannot
sell, and if retailers cannot sell whole
sale merchants and manufacturers
must go into bankruptcy.
TRUE BOND HOLDERS INJURED.
"Those who hold as a permanent
investment the stock of railroads and
of other enterprises-I do not include
those who speculate in stocks or use
stock holdings as means of obtain
ing an inside advantage in constitute
ton contracts injured by gold
standard. The rising dollar destroys
the earning power of these enterprises
without reducing their Liabilities, and
as dividends cannot be paid until SAL
aries and fixed charges have been sat
fsfed, the stockholders must bear the
burden Of hard times
Salaries in business occupations
depend upon business conditions, aud
the gold standard both lessons the
amount and the greatest permanenCy
of such salaries. Financial salaries,
except the salaries # those who hold
office for life, must, in the long run,
be adjusted to the conditions Of those
who pay the taxes, and il the present
financial policy continues We must
expect the contest between the tax
payer and the taxeater to increase in
bitterness.
1.-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.
II have not attempted to describe
the effect Of the gold standard upon
all classes--in fact / have only had
time TO mention few--but each per-
son will be able to apply the prinoi-
pies to his own occupation.
1T must also be remembered that
it is the desire Of people generally to
convert their earnings into real or
personal property. This being true,
in considering any temporary advan-
tage which may come from q system
under which the dollar rises in it's
purchasing power, it must not be for
gotten that the dollar cannot buy
more than formerly unless property
sells for less than formerly. II will
be seen that large portion OF those
who may find some pecuniary advant-
age IN gold standard will discover
that their losses exceed their gains.
SOLVENT RANKS NOT DEBTORS.
1T is sometimes asserted by our
opponents that bank belongs to ths
debtor class but this is not true Of
any solvent bank. Every statement
published by solvent bank shows
that the assets exceed the liabilities,
that is to say, while the bank owes
largo amount OF money to its deposit
ors it not only has enough on hand IN
money and notes TO pay it's depositors
but in addition thereto has enough to
cover it's capital and surplus, When
the dollar is rising in value slowly, a
bank may, by making short time loans
and taking good security, avoid losses,
but when prices are falling rapidly.
the bank is apt to lose more because
of bad debts than it can gain by the
increased purchasing power Of its
capital and surplus. 1t must be adj
mitted, however, that some bankers
combine the business Of a bond brok-
or with the ordinary banking BUSH
ness, and these may make enough
in the negotiation Of loans to Offset
the losses arising in legitimate bank
ing business.
"As long as hnman nature remains
as tits there will always be danger,
more or less restrained by the public
opinion or legal enactment, that those
who see pecuniary profit for them
selves in certain condition may yield
to the temptation to bring about that
condition. Jefferson has stated that
one Of the main duties Of government
is to prevent men from in jnring one
another, and never was that duty
more important than it is to day. 1t
ia not strange that those who have
made profit by furnishing gold to
the government IN the hour of its ex-
tremity favor a financial policy which
will keep the government dependent
upon them. Ibelleve, however. that
speak the sentiment OF the vast ma
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