The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1896-08-26

definitely they may be compelled 20 with
draw their deposits in order to pay living
expenses. 1t is not only necessary to note
the increasing number of failures in order
to know that gold standard is ruinous to
merchants and manufacturers. These
business men do not make their profits
from the people from whom they borrow
money, but from the people whom they
sell their goods. If the people cannot buy
retailers cannot sell, and the if retailers
cannot sell, wholesale merchants and man
facturcrs must go into bankruptcy.
Those who hold as a permanent invest
nent the stock of railroads and of other
enterprises-I do not include those who
speculate in stocks OF use stockholdings as
means of obtaining an inside advantage
in constructing cOntracts-are injured by
a gold standard. The rising dollar de-
reducing their liabilities, and as dividends
cannot be paid until selaries and fixed
charges have been satisfied, the stockhold-
ers must bear the burden of lard times
Salaries in business occupations depend
upon business conditions, and the gold
standard both lessons the amount anu
threatens the permarency of such salar-
les. Official salaries, except the salaries
OF those who hold offices fol- lie, must in
tn long run he adjusted to the conditions Of
those who pay the taxes, and it the present
financial policy continues we must expect
the contest between the taxpayer and the
taxcater to increase i'll bitterness.
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 Gre
ate wealth. have not attempt d to de-
scribe the effect of G,e gold standard upon
all classes, In fact, have only had time to
mention few. but each person will be
able to apply the principles stated to his
own occupation.
1t must also be remembered that it is
the desire OF the people generally to con-
vert their earnings into real or personal
property. Tuis being true, in considering
any temporary advantage which NAV come
nom 4 system ,lnuer winch the dollar
rises in its purchasing power, it must not
be forgotten 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 find
some pecuni;ry advantage in u gold stand
ard will DISCOVER that their losses exceed
their gains.
1t is sometimes asserted by our oppo-
nents that q bank belongs to the debtor
class, but this is not true of any solvent
D:tih' livery S11Se'iieue PuoilsHet Dy
solvent bank hows that tho assets exceed
the liabilities. That is to say, while the
bank owes large amount OF money to it's
depositors, it not only has enough on hand
in money and notes to pay its depositors,
but in addition thereto has enough to
cover Its capital and surplus. When the
dollar is rising in value slowly bank may
by making shortti,ne loans and taking
good security avoid loss, but when prices
are falling rapidly the bank is apt to LOSE
more because Of bad debts than it can
gain by the increase in the purchasing
power of its capital and surplus.
It must be admitted, however, that some
bankers combine the business of bond
broker with tha ordinary banking business
ana these may MAKE enough IN the nego-
tiation of loaus to offset the losses arising
in legitimate banking business. AS long
as human nature remains SIS it is there
will always be danger that unless re-
strained by the public opinion or legal en-
actment those who see u pecuniary profit
| for themselves III a certain condition may
yield to the temptation to bring about that
desire Jefferson has stated that one of
prevent men from iniuring one another
and never was that duty more important
than it is today. il is not strange that
| thore who have made profit by furnish
ing gold to the government in the hour of
it's extremity favor a financial policy
| which will Keep the government depend
| ent upon them. believe, however, that
speak the sentiment Of the vast majority
OF the people of the United States when I
say that wise financial policy admins
tered in behalf Of all tho people would
make our government independent of any
combination Of tnanciers Of foreign or do
nestle.
| Let me say word now in regard to Ger.
tain persons 10 are pecuniarily benefited,
by gold standard and who favor it, not
! from desire to trespass on the rights oil
! others, but because the circumstances
which surround them blind them to the ef
feet of the gold standard upon others.
shall ask you to consider that language q
two gentlemen whose long public service
and high standing in the party to which
they belong will protect them from adverse
criticism by our opponents. In 1850 Soma
currency is far more distressing opera
ton than senator's suppose" Our owl
and other nations have gone through thai
operation before. 1t is not possible to tax.
| that voyage without the sorest distress. TX
every person, except capitalist out of debt
or salaried officer or annuitant, 1t is &
period of loss, danger, lassitude Of trade
fall of wages, suspension OF enterprise
bankruptcy and disaster. 1t means ruiz
to all dealers whose debts are twice tbei
business capital, though one-third les
than their actual business property. /
means the fall of all agricultural produc
ton without any great reduction of taxes
What prudent man would dare to build ;
house, O. railroad, factory or barn will
this certain fact before him?
AS have ssid before, the salaried Office
referted to must be the man whose salsr,
is fixed for life, and not the man whose sal
ary depends upon business conditions
When Mr.. Sherman describes contraction
of the currency as disastrous to all the pee
pie, except the capitalists out of debt an,
those who stand in a position similar t.
his, he is stating a truth which must b
apparent to every person who will give tn
matter careful consideration. Mr.. Sher
man was at that time speaking Of the con
traction OF the volume of paper currency
but the principle which he set forth ar
plies, II there is a contraction of the vo
ume of the standard money of the world
Mr.. Blaine discussed the same principl
In connection with the decentralization O
silver. Speaking in the house of repre-
sentatives on the 18th Of Feb, 1883, he said
II believe the struggle now going on i
this country and other countries for
single gold standard would, If successful
produce widespread disaster in and throus
: out the commercial world. The destru(
ton Of silver as money and the establishin
+ of gold as the sole unit Of value must hav
T ruinous effect on all forms of propert
+ except those invested which yield -flxe
return in money. These would be emo
mously enhanced in value and would gal
disproportionate and unfair advantag
: over every other speIies Of property"
Is it strange that the holders of invest
ments which yield a fixed return
: money" can regard the destruction of 81
2 yer with complacencyp We may not e,
!. pect the holders of other forms of pro-