The representative., 1896-09-23
A BANKERS VIEWS.
Some Striking Facts Well Put.

Twin Cities, who has been banker and
now owns stock in several banks, who is
a large dealer in mercantile business.
and has been actively engaged in large
business for 35 years, and who does not
desire his name brought before the
public, writes the following:
The advocates of the single gold
standard basis have two main argu-
ments, on which they rely.
First-Gold hos never changed while
all other things deprecated.
SecOnd-You can't legislate values in
to money.
They occasionally get hold of some
new phrases and collateral arguments,
such as, How do you like the idea of
life insurance companies paying widows
and orphans in debased currency, there
by cheating them out of half of their
money" Also, Ito go on silver basis
would Mexicanize u.s." How do you
like the idea of paying your debts in a
fifty-cent dollar" They have lately
sent to Mexico, and the banks are now
selling Mexican dollars, said to be coun-
terfeit, at IS cents as an object lesson
last four points are new tads, and are
put forth to bewilder and trip the casu-
al observer and less intelligent classes.
The first and the second points, which
are their main argument, all history re-
flutes. In work entitled Eighty years
of Progress from 1881 to 1861, printed
in 1863, and edited by the most profound
and intelligent writer's of the day, ex-
haustively covering that period, on COM
merce, agriculture, transportation and
manufacturing, page 154 reads as fo.-
lows:
THE decade ending in 1860 was one of
the most extraordinary in the history of
commerce. 1t commenced with the
confirmation of the astounding gold dis
coveries in California, followed as by an
important discovery Of the same nature
in Australia. These events stirred the
commercial mind throughout the world,
coming, as they did the moment the
political difficulties of Europe had set
tied down in manner to win public con-
fldence and continued peace and secur-
ity. The discovery of such large sup
plies of gold induced the general belief
that the metal would depreciate as COM
pared with commodities and silver, and
tuftt tuC ucpItCIdIIO1 WOulu ultlulIcSC
itself in the rise of prices of all
industrial products. Serious apprehen-
siOns were entertained through this
view of the case, particularly in Europe,
where large class are rich on fixed an
nuities If the property was to rise in
value, leaving the amount of rents the
same in money, it would be equivalent
to running the creditors for the benefit of
ho laj>t 20, loI
mortgage on his farm for, say $4,000.
the annual interest at per cent would
be $500. At an average price Of, say 81
per bUshel for wheat, it would require
300 bushels Of wheat per annum to pay
the interest, and ultimately 5000 bushels
to pay the principal. If the mortgage
runs for five years he would be required
to give altogether 1900 bushels for in
terest, and 5000 bushels for principal,
altogether $500 bushels. If, through
the influx of gold prices became perma-
nently to be 81 for wheat it would at
once reduce the quantity per annum that
he would have to pay to $50 bushels, and
the ultimate amount for principal to
$500 bushels. In other words he would
save One-half of his grain at the expense
of his creditor, and the money value OF
be of no material benefit to him beyond
the discharge Of his debts, because the
value of all he had to purchase wou.u
rise in the same proportion. All cred
itors would lost half that was due them
This was an important consideration for
the debt covered countries of Europe
where SO large a portion of the people
are creditors of the governments. In
Holland, to avoid this, they passed
law doing away with gold as legal ten
der, and making silver the only medium
of payment"
A gold advocate said to me after very
carefully reading this statement, this
would absolutely prove that gold could
and had changed in value if we only
knew what the result of that demoneti-
zation in Holland had on gold Apple
tons American Encyclopedia, Vol. II,
Article Money, page 1856, reads as ...:-
lows: I'm 1856 Holland adopted silver
as the only legal tender at fixed value
but attempted to coin gold coins having
no such value, this only being regogniz-
ed by the market price from day to day.
After 10000 forms ($8O,OOO) had been
coined, the demand entirely ceased
Here we have absolute history only 35
or 40 years ago, showing gold by it's
plentifulness, not only changed in value
but by legal characterization in Holland
It's demand entirely ceased Conclu-
sively proving three things. First,
That it depreciated. Second, that leg
islation caused the demand to entirely
cease. Third, the most clearly shown of
all that the creditor class did not wait
a moment, but when they found their in
vestments were being affected they i'm
mediately commenced to enact laws to
strengthen their position.
Compare their actions with the ac-
tion of the debtor class in this country
during the period of our shrinking of
values. They have patiently waited.
and have seen their debts, which were
created in a period of higher values.
have seen the money gradually appreci-
ate. until too many in good and medium
circumstances, it meant the loss of all
their property, houses, lands, farms and
even hOmesteads.
make no comment here on the words
OF history, but my heart goes out in
sympathy to the ten or twelve millions
of what were our middle Glass; of peo-
pie, who are now reduced by this unnat-
ural shrinkage to poverty. This great
shrinkage may have bettered fifty or
sixty thousand of our people, who have
acquired; these properties from the
weaker class; If SO, they are of course
to be congratulated.
But the thought comes to my mind.
{vSNA a.