The herald., 1896-08-13

tty OF the people OF tne couHtry, WHY
should their interests be ignored in con-
sidering financial legislation? A none
tary system which is principally advan-
tageous to syndicates has far less to
commend it than a system which would
rive hope and encouragement to those
who create nations wealth. Our oppo-
nents have made a special appeal to
those who hold fire and life insurance
policies, but these policy holders know
that since the total premiums received
exceed the total losses paid, a rising
standard must be Of more benefit 70
companies than to it's policy holders.
Much solicitude is being expressed by
our opponents for depositors in savings
banks. They constantly parade before
these depositors the advantage of the
gold standard, but these appeals will be
in vain, because savings banks deposit
tors know that under the gold standard
there is increasing danger that they
will lose their deposits because of the
inability of banks to collect their as
sets; and they still further knew that
If the gold standard is to continue indefi-
nitely they may be compelled to with
draw their deposits in order to pay liv-
note the increasing number of failures
in order to know that the gold standard
is ruinous to merchants and manufac
turers. These business men don't make
their profits from those from whom they
borrow money, but from people to whom
they sell their goods If people cannot
buy retailers cannot sell, and If retailers
cannot sell wholesale merchants and
manufacturers must go into bankruptcy.
INVESTORS INJURED
Those who hold as permanet invest
ment their stock of railroads and other
enterprises, 0 don't include those who
speculate in stocks or use stockholders
as means of making an inside advantage
in construction contracts), are injured
by the gold standard. The rising dol
lar destroys the earning power OF those
enterprises without reducing their la
bilities, and as dividends cannot be paid
until salaries and fixed charges have
been satisfied, stockholders must bear
the burden of hard times. Salaries in
business occupations depend upon busi-
ness conditions, and the gold standard
both lessons the amount and the great
est permanency of such salaries. Finan-
hold office for life must in the long run
also be adjusted to the conditions of
those who pay taxes, and if the present
financial policy continues, we must ex-
meet a contest between the taxpayer
and taxeater TO increase in bitterness.
Professional classes in the main receive
their support from the producing classes,
and can only enjoy prosperity when there
is prosperity among those who create
wealth.
have not attempted to describe the
effect of the gold standard on all classes;
in fact I have only had time to mention
few, but each person will be able to ap-
ply the principle to his own occupation.
1t must also be remembered that it is
the desire of the people generally to
convert their earnings into real or per-
sonal property. This being done, in
considering any temporary advantage
which may come from a system under
which the dollar rises in its purchasing
powerJ it must not be forgotten that the
dollar cannot buy more than formerly
unless property sells for less than for
merly.
1t will be seen that large proportion
of those who may find some pecuniary
advantage in the gold standard, will dis
cover that their losses exceed their
gains.
THE BANKERS
1t is sometimes asserted by our oppon-
ents that a bank belongs to the debtor
class, but it is not true of any solvent
bank. Every statek lent published by
solvent bank shows the assets exceed
l,1 Ito hot ic 10 while the
bank owes a large ahount of money to
it's depositors, it not only has enough
on hand in money and notes to pay As
depositors, hut in addition thereto, has
enough to cover it's capital and surplus.
When the dollar is rising in value slow
ly, the bank may, by making short time
loans and taking good security, avoid
losses, but when prices are falling rap
idly, the bank is apt to lose more by
bad debts than it can Bain by the in
creased purchasing power of its ca1i-
tai and surplus. 1t must be admitted,
however, that some bankers combine
the business of bond broker with ordi-
nary banking business, and these may
make enough in the negotiation of loans
to offset losses arising in legitimate
banking business.
SELF-INTEREST
AS long as human nature remains as
1t is there will always be danger more
or less restrained by public opinion or
legal enactments, that those who see
pecuniary profit for themselves in GER
tain conditions may yield to temptation
to bring about those conditions. Jefferson
has stated that one of the many duties
of government is to prevent men from
injuring one another, and never was that
duty more important than it is today.
1t is not strange that those who have
made profit by furnishing gold to the
favor a financial policy that will keep
the government dependent upon Them
] believe, however, that I speak the SEN
timent of the vast majority of the peo-
pie of the United States when say that
this financial policy administered in be-
half of all people who make our govern
ment Independent of any combination
of financiers, foreign or domestic.
WHO is BENEFITED
Let me say a word now in regard to
certain persons who are pecuniarily ben
Gifted by the gold standard, and who
favor it. not from any desire to trespass
upon the rights of Others but because
circumstances which surround them
'>blind them to the effect of the gold
standard upOn Otharc shall cly 1ro,,