The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-08-15
HURTS THE sALARIED CLASSES.
Assertion That Banks Cannot lie Counted
Among the Debtors.

Assertion That Banks Cannot he Counted
Among the Debtors.
Those who hold, as permanent invest.
ment, the stock of railroads and of other
enterprises-I do not include those who
speculate in stocks or use stock holdings
as a means of obtaining an inside advan.
tage in construction contracts-are injured
by gold standard. The rising dollar de-
stroys the earning power of these enter
prises without reducing their liabilities,
and as dividends cannot be paid until sal
aries and fixed charges have been satisfied
the stockholders must bear the burden OF
hard times Salaries in business occupa'
tions depend upon business conditions,
and the gold 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
IL the present financial policy continues
we must expect the contest between the
taxpayer and the tax-eater to increase in
bitterness.
The professional classes, In the main,
receive their support from the producing
CldSSeS anu Ctiu OllN tHJON
when there is prosperity among those who
create wealth. / have not attempted to
describe the effect of the gold standard
upon all classes-in fact, have only had
time to mention a few-but each person
will be able to apply the principles to his
own occupation. 1t must also be remem-
bered that it is the desire of people gen
orally to convert their earnings into real
or personal property. This being true, in
considering any temporary advantage
which may come from a system under
which the dollar rises i'm its purchasing
power IL must not be forgotten that the
dollar cannot buy more than formerly UNI
less property sells for less than formerly.
Hence, il will be seen that a large portion
of those who may find some pecuniary adj
vantage in gold standard will discover
that their losses exceed their gains.
Our opponents have made special APP
neal to those who hold fire and life insur-
ance policies, but these policy holders
know that since the total premiums re-
ceived exceed the total losses paid IA rising
standard must be of more benefit To the
companies than to the policy holders.
Much solicitude has been expressed by our
opponents for the depositors in savings
banks. They constantly parade before
these depositors the advantages of n gold
standard; but these appeals will be in
vain, because savings banks dcpositors
know that under gold standard there is
increasing danger that they will lose their
deposits because of the inability of the
banks to collect their assets; and they still
further know that II the gold standard is
to continue indefinitely, they may be COM
PEELED to withdraw their deposits in order
to pay living expenses.
1t Is only necessary to note the incrcas-
ing number of failures in order to know
that gold standard is ruinous to mer-
chants and manufacturers. These bust.
ness men do not make their profits from
the people from whom they borrow
money. but from the people to whom they
sell their goods II the people cannot buy
retailers cannot sell, and IL retailers can
not sell wholesale merchants and manu-
facturcrs must go into bankruptcy.
IL Is sometimes asserted by our oppo.
nents that bank belongs To the debtor
class, but this Is not true Of any solvent
bank. Every statement published by n
solvent bank shows that the assets exceed
the liability. That is to say, while the
bank owes "a large amount Of money To its
depositors IL not only has enough on hand
In money and notes to pay its dcpositors.
but in addition thereto has enough to
cover its capital and surplus. When the
dollar Is rising in value slowly bank
may, by making short-time loans and TAX
ing good security, avoid loss, but when
prices are falling rapidly tho hank Is apt
to lose moro because of bad debts than II