The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1896-10-31
A LOOK AHEAD.
SERIOUS Would BE the Results of BryenS

"a LSOAs v So III 0CPtCAAoSA SO
he said: II say to you now that my
election means that this nation shall
open its mints to the free coinage Of
both metals at the earliest possible mo
ment. Not only that, but my election
means that this nation shall treat the
silver dollar just as it treats the gold
dollar and that we shall not issue bonds
to buy gold"
II the treasury gold reserve is not to
be replenished by bond sales, it Is GER
tain that it can't last long. Foreigners
would Immediately call for their loans
and balances here, and holders Of the
1898, 1000, 900 Of outstanding greenhacks
and treasury notes would quickly With
draw the s123, 10000 Of gold now In the
treasury, to either export or hoard II.
and leave the holders of the remaining
5000, 900, 900 to take their pay in silver.
That this gold will almost immedi-
ately be exported Mr.. Bryan admits.
On September 20 at Tammany hall he
said: you know hat with gold as our
only primary money and the fact that
the little quantity of gold can be
drained away at a moments notice by
foreign creditors, it leaves US" etc.
As all our national bank notes are re-
deemable in greenbacks they, too,
would fall with greenbacks to a silver
basis.
In short Mr.. Bryan's election would,
al soon as the present gold in the treas
ury is exhausted, put our currency on q
silver basis, and all debts, except where
otherwise expressly stipulated, would
be paid in silver.
It will be observed that this would ell
happen, ever if no free coinage act
should ever be passed.
AS interest On government bonds
would h~enceforward be paid in silver,
and also all dividends on stocks, foreign
capital would dispose largely Of their
holdings in these, and thus necessitate
further large remittances of gold.
Their correspondents here and Dor
rowers of foreign money, being called
on to pay up, would be compelled to
call in their loans and draw their bal
ances out Of bank.
All creditors in this country who pre-
fer gold to silver dollars (Which in
cludes the bulk of them) would demand
all debts due them paid, and, getting
greenbacks or treasury notes for their
bank balances, would present them at
the treasury for gold before it was too
late. If impossible to get gold they
would buy sterling exchange or ex-
nnonnn M onnIn II o1 o-~-A4
that prior to October 1 over Sc, 900, 900 in
gold had already been deposited in
Canadian banks to avoid the risk of the
coming election.
In short. every man who had a dollar
coming to him would want that dollar
paid him while it was still worth 100
cents and before it got to be worth but
81.
The business houses and other debt.
ors called on to pay up would be COM
PEELED to call on their debtors, and thus
all the debtors in the country would be
called on 10 pay up Immediately. The
demands on the banks would compel
them to call in their loans, and, if not
paid, to sell or try to sell the collaterals.
Debtors would be compelled to sell
their property at any price, and where
all debtors were sellers at once the de-
clines would be such as we have never
seen before, because there has never be-
fore been such a wholesale calling in Of
debts, and consequently selling, as this
would cause.
Business houses the country over, be-
ing unable TO collect balances due them
or to realize or their stock, except at
luinously low prices, if at all, must fail.
Nothing could save them.
Small depositors, nervous and follow
ing the larger Ones, would draw their
balances, and run on banks would be-
come general.
With these runs on oil the banks, they
must either break or suspend. In
the cities the stronger ones would COM
bine and suspend, but the weaker ONES
and all country banks would fail.
The panic and ruin would far exceed
that of 1873 or of 1893, the latter of
which. called the "silver panic" was
caused by the apprehension only of 60
ing on a silver basis. This panic would
be caused i'll part by actually going on
that basis.
Mr.. Bryan admits this. In the Chi
cago convention he said: when you
come before us and tell us that we shall
disturb your business interests, we re-
ply that you have disturbed our bust
ness interests" And the ST. Louis
Globe-Democrat reported his saying:
81 think it (meaning the victory of the
free coinage movement will cause a
panic. But the country is in n deplor-
able condition, and it will take extreme
to restore it 10 a condition
of prosperity"
In the general scramble by foreign
and home creditors for gold, as there is
not enough TO go round, 1t would neces-
sarily 60 10 n premium, with the inev-
liable result that the S517,O00,O00 of
gold in circulation now in the
States would be exported or
boarded.
Railroad stock with gold mortgages
head of them (as gold must be bought
10 pay interest, thus increasing if not
doubling this fixed charge and to that
diminishing or entirely wiping
the net earnings applicable 10 divi-
icndsl. with earnings diminished by
he business collapses, would in tie
general panic become absolutely un-
m l-4L,-, ,-1,11 lo-n