The daily morning journal and courier., 1896-07-30

silver dollar, out worth no more than
 the bullion in 1t, or 63 cents under our
 present currercy system.
 This would be particularly hard on
 thousands of women who live on the
 interest they receive from savings bank deposits. In my own bank we have
 many deposits of few thousands each belonging to widows. They exist on the interest of this money. We have
 many deposits of a few thousands each
 belonging to orphaned children. To
 these persons free silver would bring
 distress. While the actual number of so-called dollars in their possession
 would be the same, their actual value
 must shrink almost to one-half, and
 the same shrinkage would apply to the value of their interest The apostles of free silver declare that if their ideals
 were carried out prices would rise. This is true. Experience has shown that prices always rise when the currency is inflated. So not only would the peo- pie who have by their thrift accumu- | lated small fortunes find them shrunk-
 en, but they would also have to pay
 more dollars for everything they buy food, clothing and other necessaries of | life.
 T know that the majority of the offl- cers of savings banks all over this country agree with me in my views. Whether the depositors realize the con- | dition that confronts them I do not
 know. But such a condition does con- | front them The Chicago platform is | an attack on their savings; 1t is con- | spiracy against thrift. In considering | the matter have left out entirely the
 possibility of violent business disrup-
 tion and depression. I think every sav- | ings bank depositor will see how his
 savings must shrink in value by reason | of the imitation. That alone should | bring him into the fight for honest | money'
 l The danger of free silver to the saw | ings banks was explained by J. Harsen Rhoades, president of the Greenwich Savings banks, in an article published | in 1893 published in the North Ameri- can Review. The article was written when it was feared that the govern
 ment would. under the sherman act, continue the monthly purchase and coinage of large quantities of silver bullion. Mir Rhoades said:
 The known strength of the institu- 1 tions themselves, coupled with a prompt strengthening of cash reserves
 and every effort made to allay excite
 ment, will, in all probability prevent | disastrous consequences, but the dan ger exists and shows one phase of the l tremendous shock to credit which the
 mad race for unrestricted coinage now | l ped in time. In this state alone sav-
 ings banks have s260,000,000 loaned on l real estate, known as bonds and mort | gage loans. There are but few of these
 mortgages so held as to contain an
 agreement to pay the principal in gold
 or it's equivalent when payment is de- handed, after becoming due and paya-
 ble What, then, is the duty of those who manage these institutions? Shall
 these mortgages when passed due be caled in for payment or gold clause l insisted upon as measure of precau- 1 ton both in reference to these held
 as we'll as to future investments in this I class of property? If so then serious
 derangement in rates of interest paid. l and, to a certain extent, in the value of real estate itself must ensue, and on
 no class os the community would this
 derangement fall heavier than on the
 farmer, who, at best, finds 1t difficult
 to secure permanent loans on his prop l erty.
 | Whatever rule is adopted by other l leading financial institutions in this \ country will, in all probability, be fol- l lowed by the savings banks, and the
 extent of the precaution, if exercised,
 will be determined by the exigencies
 of the occasion as they arise; but the
 question is a serious one, and on its l decision rests the welfare of large 1 number of that debtor class, for whose financial aid free coinage is invoked" | 1 nrr,c, -r F, 1,1r 1orrI [ IrIo xxrINIC