Middlebury register. (Middlebury, Vt.) 1886-1937, 1896-08-21

1t is only necessary to note the increas-
ing number of failures in order to know
that gold standard Is ruinous to mer-
chants and manufacturers. These business
men do not make their profits from the
people from whom they borrow money, but
from the people to whom they sell their
goods. If the people cannot buy, retailers
cannot sell, and, if retailers cannot tell,
wholesale merchants and manufacturers
must go into bankruptcy.
Those who hold as a permanent invest
ment the stock of railroads and of other
enterprises Il do not include those who
speculate in stocks or use stock holdings as
a means of obtaining an inside advantage
in construction contracts) arc injured by
gold standard The rising dollar destroys
the earning power of these enterprises with
out reducing their liabilities, and. as divi-
dcnds cannot be paid until salaries and
fixed charges have Lecn satisfied, the stock
holders must bear the burden of hard
times.
Salaries in business occupations depend
upon business conditions and the gold
standard both lessons the amount and
threatens the pcrmanency 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 if the present
financial policy continues we must expect
the contest between the taxpayer and the
tax eater to increase in bitterness.
The Professional Glasses.
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 create
wealth.
l have not attempted to describe tho eff
feet of the gold standard upon all classes
in fact, 1 have only had time to men
ton few-but each person will 30 able to
apply the principles stated to his own oc-
cupation.
1t must also be remembered that it is the
desire of people generally to convert their
earnings into real or personal property
This being true, in considering any tenn
pOrary advantage which may come from a
system under which the dollar rises in its
purchasing powGr it must not be forgot
ten that the dollar cannot bus more than
formerly unless property sells for less than
formerly. Hence it will be seen that a
large portion of those who may find some
Pecuniary advantage in a gold standard
will discover that their losses exceed their
gains.
1t is sometimes asserted by our oppo-
nents that bank belongs to the debtor
bank. Every statement published 10y
solvent bank shows that the assets exceed
the liabilities-that is to say, while the
bank owes a large amount of money to its
depOsitors it not only has enough on
hand in money and notes to pay its depOs-
itors, but in addition thereto has enough
to cover its capital and surplus. When the
dollar is rising in value slowly, u bank
may, by making short time 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 it's capital and surplus.
1t must be admitted, however, that some
bankers combine the business of n bond
broker with the ordinary banking bust
ness, and these may make enough in the
negotiation of loans to offset the losses
arising in legitimate banking business.
AS long as human nature remains as it is
there will always be danger that, unless
restrained by public opinion or legal en-
actment those who see a pecunary profit
for themselves in certain condition may
yield to the temptation to bring about that
condition jefferson has stated that one
of the main 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 government in the hour of its
extremity favor a financial policy which
will keep the government dependent upon
them. ! believe however, that l speak the
sentiment Of the vast majority of the peo-
pie of the United States when l say that
wise financial policy administered in be-
half of all the people would make our gov
ernment independent of any combination
of tinanciers, foreign or domestic.
Contraction of the Currency.
Let me say word now in regard to GER
tain persons who are Tecuniarily benefited
by gold standard, and who favor it not
from desire to trespass rAon the rights of
, others, but because the circumstances which
surround them blind them to the effect of
, the gold standard upon Others l shall ask
you to consider the language of two gentle
men whose long public service and high
, standing in the party to which they belong
, will protect them from adverse criticism
, by our opponents. In 1869 Senator Sher-
man said: "The contraction of the cur
rency is a far more distressing operation
than senators suppose. Our own and
other nations have gone through that oper-
alton before. 1t is not possible to take that
: voyage without the sorcst distress. To ey-
cry person. except capitalist out of debt
or salaried officer or annuitant, it is q
period of loss danger, lassitude of trade,
fall of wages, suspension of enterprise,
bankruptcy and disaster. 1t means ruin to
all dealers whose debts are twice their
business capital, though one-third less
than their actual property 1t means the
! fall of all agricultural production without
: any great reduction of taxes What pru-
dent man would dare to build house, a
railroad, a factory or "a barn with this Ger
tain fact Before him. As l have said be-
fore, the salaricd officer referred to must
be the man whose salary is fixed for life
and not the man whose salary depends
J upon business conditions. When Mr. Sher-
man describes contraction of the currency
as disastrous to all the people except the
! capitalist out of debt and those who stand