The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1896-08-20

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 present
financial policy continues we must expect
the contest between the taxpayer and the
tax cater to increase in bitterness
The Professional Glasses.
The professional classes, in the main, de-
rive their support from the producing
classes and can only enjoy prosperity when
there Is prosperity among those who create
wealth
I have not attempted to describe the cf-
feet OF the gold standard upon all classes
in fact, I have only had time to men,
ton few-but each person will be able to
apply the principles stated to his own oc-
cupation.
1t must also be remembered thatit is the
desire of people generally to convert their
earnings into real or personal property.
This being true, in considering any tenn
porary advantage which may come from
system under which the dollar rises in its
purchasing power it must not bc forgot
ten that the dollar cannot buy more than
formerly unless property sells for less than
formerly. Hence it will be- seen that !:
large portion of those who may find some
pecuniary advantage in - gold STANDARD,
will discover that their losses exceed their
gains
1t is sometimes asserted by our oppo
nents that Il bank belongs to the debtor
class, but this is not true of any solvent
bank. Every statement published Iy q
solvent bank shows that the assets exceed
the liabilitics-tiIat is to say, while the
bank owes large amount of money to it,
depositors it not only has enough on
hand in money and notes to pay it's Gcl os
itors, but in addition thereto has enough
to cover its capital and surplus When the
dollar is rising in value slowly, a h,nk
may, by making short time loans and
taking good security, avoid loss, but when
prices are falling rapidly the bank is apt
to lose moro because of bad debts than it
can gain by the increase in the purchasing
power of its capital and surplus.
1t must be admitted, however, that some
bankers combine the business of 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 it is
there will always be danger that, unless
restrained by public opinion or legal en-
actment, those who see pccuniary profit
for themselves in a certain condition may
yield to the temptation to bring about that
condition. jefferson has stated that ono
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 financial policy which
will keep the government dependent upon
them. i believe, however that speak the
sentiment of the vast majority of the poo
pie of tho United States when say that /,
wise financial policy administered in be-
half of oil the people would make our gov
ernmept independent of any combination,
of linancicrs, foreign or domestic.
Contraction of the Currency.
Let me say word now in regard to GER
tain persons who are lCcuniarily benefited
by gold standard, and who favor 1t rot
from desire to tresEaSs upon the rights OF
Others but because the circumstances which
surround them blind them to the effect OF
the gold standard upon others. I shnll ask
you to consider the language Of two gentle
men whose long public service and higl,
standing in the party to which they belong
will protect them from adv crsc criticism
by our opponents. In 1869 Senator Shcr-
man said: The contraction of the cur
rency is q far more distressing operation
than senators suppose. Our own and
other nations have gore through that opcr-
alton before. 1t is net possible to take that
voyage without the sorest distress. To cv-
cry person, except u capitalist out Of debt
or salariGd officer or annuitcnt, 1t is &
period of loss, danger, lassitude Of trade.
fall Of wages suspension of enterprise,
bankruptcy and disaster. 1t means ruin tC
all dealers whose debts are twice their
business capital, though onc-third less
than their actual property. 1t means the
fall of all agricultural production without
any great reduction Of taxes What pru
dent man would dare to build house, a
railroad, factory or u barn with this Ger
tain fact before hims'' AS have said be
fore, the salaricd officer referred to must
be the man whose salary Is fixed for life
and not the man whose salary depends
upon business conditions. When Mr.. Sher
man describes contraction Of the currency
ss disastrous to all the people except the
capitalist out of debt and those who stand
in position similar to his, he is stating q
truth which must be apparent to every per
son who will give the matter careful con
sideration. 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 contrac
ton of the volume of the standard money
of the world.
Mr.. Blaine discussed the same principle
in connection with the dcmonetization oi
silver. Speaking in the house of represent
atives on the 7th of February, 1878, he
said: Il believe the struggle now going or
in this country and other countries for q
single gold standard would, if successful
produce widespread disaster in and
throughout the commercial world The
destruction of silver as money and the
establishing of gold as the sole unit OF
value must have Il ruinCUs effect on al
forms OF property except those invested
which yield a fixed return in money. These
would be enormously enhanced in value
and would gain a disprOpOrtionate and
unfair advantage over every other specie:
Of property Is it strange that the hold
ers of investments which yield fixed re
turn in money can regard the destruction
Of silver with complacency? May We moi
expect the holders of other forms Of prop
erty to protest against giving to money a
"disproportionate and unfair advantage
over every other species OF property" II
the relatively few whose wealth consists
largely in fixed investments have a right
to use the ballot to enhance the value OF
| their investments, have not the rest of the
people the right to use the ballot to pro
tcct themselves from the disastrous conse.
| quences ot a rising standard? The people
who must purchase money with the prod
ucts of toll stand in position entirley diff
fercnt from the position Of those who own
money or receive fixed income. The well
being of the nation-aye, of civilization it
! self-depends upon the prosperity OF the
masses What shall it profit US to have q
dollar which grows more valuable every
! day If such dollar lowers the standard oi
civilization and brings distress to the peo
/ plcs What shall it profit US if in trying t.
raise our credit by increasing the purchas
ing power Of our dollar We destroy oui
l. i