The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-08-13

CONTRACTION OF CURRENCY.
."Let me say a word, now, in regard
to certain persons who are pecuniarily
! benefited by a gold standard and who
| favor it. not from a desire to treSpaSS
upon the rights of others, but because
| Of the circumstances which surround
| them. / shall ask YOU to consider the
language of two gentlemen whose long
public service ard high standing in the
party to which they belong will pro-
| tect them from adverse criticism by
our opponents. In 1869 Senator Sher-
| man said The contraction Of the
| currency is a far more distressing
/ operation than Senators suppose Our
| own and other nations have gone
| through the operation before. 1t IS
| not possible to take that voyage with
out sorest distress. To every person,
| except a capitalist out of debt or Il
salaried officer or annuitant, it is
| period of loss. danger. lassitude of
| trade. fall Of wages, Suspension of en-
terprise, bankruptcy and disaster. II
means ruin to all dealers. whose debts
are twice their business capital, though
| one-third less than their actual prop
/ erty. 1t means the fall of all agricul-
| tural production without any great
reduction Of taxes. What prudent man
would dare to build a house, rail-
road, factory or a barn with this GER
| tain fact before him.
| "When Mr.. Sherman describes con-
| traction of the currency as disastrous
to all the people except the capitalist,
| those out of debt, and those who stand
| in position similar to him, he is stat
| ing a truth, which must be apparent to
every person who will give the matter
1
was at that time speaking of the con-
| traction or the volume of paper cur
rency. But the principle which he set
| forth applies, if there is contrac-
| ton of the vohlme of the standard
money of the world.
"Mr Blaine discussed the same prin-
cip1e in connection with the demoneti-
| zation of silver. Speaking in the House
of Representatives on the 18th of Feb,
1879, he said: I believe the struggle
now going on in this country and other
countries for a single gold standard
would if successful.produce widespread
disaster in and throughout the COM
mercial world. The destruction Of sill
yer as money and the establishing OF
gold rs the sole unit of value must
have ruinous effect on all forms of
property. except those invested, which
are called a fixed returning money.
These would be enormously enhanced
in value, and would gain dispropor-
Tomato and unfair advantage over ey-
cry other species Of property.
PROSPERITY OF THE MASSES.
4 lis it strange that the holders of
investments which yield a fixed re-
turn in money can regard the demone-
fSyafiDT, tho hnlHArc nf
May we not expect the holders of
other forms of property to protest
against giving to money 'dispropor-
tionate and unfair advantage over
every other species of property? Ii
the relatively few whose wealth con-
sists largely of 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 protect themselves
from the disastrous consequences OF
rising standard? The well-being
of the nation-aye, of civilization it,
self-depends upon the prosperity of
the masses. What shall it profit a
man to have a dollar which grows
more valuable every day ii such
dollar lowers the standard Of civiliza-
ton and brings distress to the people?
What shall it profit rs ii, in trying to
raise our credit by increasing the pur-
chase power of our dollar we destroy
our ability to pay the debts already
contracted by lowering the purchasing
power of the products with which
those debts must be paid? IL it is
asserted, as it constantly is asserted,
that the gold standard will enable us
to borrow money from abroad, | reply
that the restoration of bi-metallism
will restore the parity between money
and property, and thus permit an era
of prosperity which will enable the
American people to become loaners OF
money instead Of perpetual borrowers.
Even If we desire to borrow, how long
can we continue borrowing under a
system which, by lowering the value
Of property, weaEens the foundation
upon which credit rests? =
IF the holders of fixed investments
will not listen to arguments based
upon justice and equity, | appeal to
them to consider the interests OF pros
terity. We do not live for ourselves
alone; our labor, our self denial and
our anxious care-all these are for
those who are 10 come after us as much
as for onrsef, but we cannot pro-
tect our condition beyond the period
OIL our HIVES i4tb sl1OaC WIG dl g NOW
reaBing advantage from vicious finan-
cial system remember that in years to
CONS their own children and their
children's children. may, through the i
operation of this same system, be made
to pay tribute to the descendants Of
those who are Wronged to-day
DEBTOR AND CREDITOR.
SIf there are two kinds of money
the option must rest either with the
debtor or with the creditor. Assuming
that their rights are equal, we must
look at the interests of society in gem
eral IN order to determine which side
the option should be given. Under the
bi-metallic system, gold and silver are
linked together by law at fixed ratio
and any person owing any guam
tity of either metal can have the same
converted into full legal tender money
IF the creditor has the right to choose