Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1896-08-18
NEW SERIES, VOL. XXI, NO. 50.


Tho farmers are opposed to the gold
standard because they have felt its effects
Since they sell at wholesale and buy at re-
tail they have lost more than they have
gained by falling prices, and besides this,
they have found that certain nxed charges
have not fallen at all. Taxes have not
been perceptibiy decreased, although 1t re-
quires more of farm products now than
formerly to secure the money with which
to pay taxes Debts have not fallen. Tho
farmer who owed 81 900 is still compelled
to pay 81 900, although it may be twice as
difficult as formerly to obtain the dollar
with which to pay the debt Railroad
rates have not been reduced TO keep pace
with falling prices, and besides these items
there are many more. The farmer has
thus found complaint against the gold
standard
The Wage Farmers Injured.
The wage earners have been injured by
gold standard, and have expressed them
selves upon the subject with great empha-
sis. In February, 1895, q petition asking
for the immediate restoration of the free
and unlimited coinage of gold and silver
ut 16 to 1 was signed by the representatives
of all, or nearly all, the leading labor Or
ganizations and presented to congress-
Wage earners know that while a gold
standard raises the purchasing power OF
the dollar it also makes it more difficult to
obtain possession of the dollar; they know
that employment is less permanent, loss
of work more probable and unemployment
less certain.
A gold standard encourages the hoard
ing Of money, because money IS rising. 1t
also discourages enterprise and paralyzes
industry. On the other hand, the restora-
tion of bimetallism will discourage hoard
ing, because, when prices are steady or ris-
ing, money cannot afford to lie idle in the
bank vaults. The farmers and wage earn
ers together constitute considerable ma
jority of the people of the country. Why
should their interests be ignored in con-
sidering financial legislation? A none
tary system which is pecuniarily advanta-
geous to few syndicates has far less to
commend it than n system which would
give hope and encouragement to those who
create the nations wealth.
Our opponents have made special ap-
peal to those who hold fire and life insur-
ance policies, but these policy holders
know that since the total premiums re-
ceived exceed the total losses paid, a rising
standard must be of more benefit to the
companies than to the policy holders.
Much solicltude has been expressed by
our opponents for the depositors in saw
ings banks They constantly parade be-
fore these depositors the advantages of q
GOlu IUtSt tDDtailS Will Dc
in vain, because savings bank depositors
know that under gold standard there is
increasing danger that they will lose their
deposits because of the inability of the
banks to collect their assets, and they still
further know that, if the gold standard is
to continue indefinitely, they may be COM
PEELED to withdraw their deposits in order
to pay living expenses
Increased Number of Failures.
1t is only necessary to note the increas-
ing number of failures in order to know
that gold standard is ruinous to mer-
chants and manufacturers. These busi-
ness men do not make their profits from
the people from whom they borrow money,
but from the people to whom they sell
their goods. If the people cannot buy,
retailers cannot sell, and, If retailers can
not sell, wholesale merchants and manu-
facturers must go into bankruptcy.
Those who hold, as q permanent invest
ment, the stock of railroads and of other
enterprises-I do not include those who
speculate in stocks or use stock holdings
as means of obtaining an inside advan-
tage in construction contracts-are in
jured by gold standard. The rising dol
lar destroys the earning power of these en-
tcrprises 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 salaries.
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 pres
ent financial policy continues we must ex-
pect the contest between the tax payer
and the tax eater to increase in bitterness.
The professional classes-in the main
derive their support from the producing
classes, and can only enjoy prosperity
where there is prosperity among those
who create wealth.
have not attempted to describe the eff
feet of the gold standard upon all Glasses
in fact, 1 have only had time to mention
a few-but each person will be able to ap-
ply the principles stated to his own occu-
patton.
1t must be admitted, however, that
some bankers combine the business of a
bond broker with the ordinary banking
business, 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 is
there will always be danger that, unless
restrained by the public opinion or legal
profit for themselves in n 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 injuring one
another, and never was that duty more
important than it is today.
It is not strange that those who have
made profit by furnishing gold to the
government in the hour of its extremity,
favor a financial policy which will keep
the government dependent upon them !
believe, however, that 1 speak the senti-
ment of the vast majority of the people of
the United States when I say that n wise
financial policy administered in behalf of
all the people would make our government
independent of any combination of finan-
eiers, foreign or domestic.
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 considering any
temporary advantage which may como
from q system under which the dollar
rises in its purchasing power, it must not
be forgotten that the dollar cannot buy
more than formerly, unless property sells
for less Than formerly. Hence, it will be
seen that q large portion Of those who
may find some pecuniary advantage in
gold standard will discover that their
losses exceed their gains.
Bsneheiaries of the Gold Standard.
Let me say word, now, in regard TO
certain persons who are pecuninrily bene-
flied by gold standard, and who favor
II, not from a desire to trespass upon the
rights of others, but because the circum-
stances which surround them blind them
frr fhn Oft Of khn dtO ri