The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-26
If BRYAN IS ELECTED
THE RESULTS THAT WOULD FOLLOW
THE SUCCESS of POPOCRACY.
Debtors Would BE linn al lately Called
Upon to Pay, and ImmeasurabIe
Distress Would Follow.
PANIC AND RUIN a CERTAINTY
A LOGICAL AND CONVINCING PRE-
sENTATION OF THE CASE,
Deduced from Bryan's Talk and the
Lessons of Experience with the Inn
mutabge Laws of Business.

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weighed what the result will be?
At Paterson, on Sept. 2s, he said 81 say
to you now that my election means that
this Nation shall open its minis to the free
coinage of both metals at the earliest
possible moment. Not only that, but my
election means that this Nation shall treat
the silver dollar just as 1t treats the gold
dollar, and that we shall not issue bonds to
buy gold"
If the treasury gold reserve is not to
be replenished by bond sales we
will know it can't last long. For
eigners would Immediately call for
their loans and balances here, and
holders of tin $33S, 100000 of outstanding
greenbacks and treasury notes according
to the United States treasury statement Of
Oct. !, 1880 would quickly withdraw the
s123, 900, 600 of gold now in the treasury to
either export or hoard it, and leave the
holders of the remaining $200, 900 to take
their pay in silver.
That this gold will almost Immediately
be exported Mr.. Bryan admits. On Sept.
%. at Tammany Hall, he said: You know
that with gold as only primary money,
and the fact that the little quantity of
gold be drained away at moments
notice by foreign creditors, 1t leaves US,
etc"
AS all our national bank notes are re-
deemable in greenbacks, they, too, would
fall with them to a silver basis. In short,
Mr.. Bryans election would, as the
present - in the treasury is exhausted.
put our curI cy on a silver basis and all
debts, except where otherwise expressly
stipulated, would be paid in silver.
1t will be observed that this would all
happen, even If no free-silver coinage act
should ever be passed.
AS interest on government bonds would
hence forward be paid in silver and
also all dividends on stocks, for
egn capitalists would dispose large
ly of their holdings in these, and
thus necessitate further large remit
tances of gold. Their correspondents here
aud borrowers of foreign money being
called on to pay up, would be compelled
to call in their loans and draw their bal
ances out of bank.
All creditors in this country who prefer
gold to silver dollars (Which includes the
bulk of themD would demand all debts due
them paid, and, getting greenbacks or
treasury notes for their bank balances.
would present them at the treasury for
gold before it was too late. If impossible
to get gold, they would buy sterling ex-
change or exchange on Canada. The New
York Herald reports that prior to Oct
over $6,00o,o00 in gold had already been de-
posted in Canadian banks to avoid the
risk of the coming election. In short, ev-
cry man who had q dollar coming to him
would want that dollar paid him while it
was still worth 100 cents and before it got
to be worth but So cents. The business
houses and other debtors called on to pay
up would be compelled to call on their
debtors. and thus all the debtors in the
country would be called on to pay up i'm
mediatey. The demands on the banks
would compel them to call in their loans
and IL not paid, to sell or try to sell the
colaterals. Debtors would be compelled to
sell their property at any price, and where
all debtors were sellers at once the de-
clnes would be such as we have never seen
before, because there has never before
been such a wholesale calling in of debts,
and consequently selling. this would
cause. Business houses the country over,
being unable to collect balances due them
or to realize on their stock, except at ruin
ousfy low prices, IL at all, must fall. Moth
ing could save them. Small depoSitorS,
nervous and following the larger ones,
would draw their balances, and runs on
banks would become general. With these
runs upon all the banks, they must either
break or suspend. In the cities the stron-
ger. ones could combine and suspend but
the weaker ones, left out of the combina-
ton, and all country banks. would fail.
OF 1878 of 1898, the latter of which, called
the silver panic" was caused by the APP
This panic would be caused III part by
actually going on that basis.
Mr.. Bryan admits this; In the Chicago
fore us and tell that we shall disturb
your business interests, we reply that you
have disturbed ,s ogr business interest,"
his saying: II think it (meaning the vic
tory of the free-coinage movemenD will
cause IL panic, but the country is in a de-
porable condition, and it will take extreme
measures to restore IT to condition OF
prosperity.
A GENERAL CRASH.
In the general scramble by foreign and
home creditors for gold, there is not
enough to go round, it would necessarily go
to a premium, with the inevitable result
that the SSH, 600. 600 of gold now in circula-
ton in the United States according to the
United States treasury circular of Oct. /,
1896 would be exported or boarded
AS the total circulation of gold, silver,
greenbacks, treasury notes. bank bills, sill
yer certificates and all other kinds of
money in the United States was on Oct /,
1896, sl.5s2 600, forcing SSH, 100000 of gold
out of circulation would reduce the money
in circulation about one-third. That is to
say, where there are now So of money in
circulation, then there would be but 81.
Such a radical and sudden contraction of
the currency would of itself alone and en-
tirely apart from any panic on account of
the depreciation of the currency, cause
known. But, coming on top of the other
panic, the ruin it would spread would be
difficult to describe. Thus railroad stocks
with gold mortgages ahead of them Gas
gold must be bought to pay interest thus
increasing IL not doubling this fixed charge
and to that extent diminishing or entirely
wiping out the net earnings applicable to
dividends), with earnings diminished by the
business collapse would in the general
panic become absolutely unstable. The
bottom would have dropped out of them
Banks, therefore, would become absolutely
unable to realize on their collateral and
though combination might save the
strongest for time, ultimately they too
must go to the wall. The Decentralization
would be complete.
In this general crash all factories mills
building operations, etc. would shut down
and all classes of workmen. mechanics and
laboreTs, except farm hands, be generally
thrown out of employment. Under the
keen competition OF this mass of unern-
ployed for the little work left IL is clear
that wages instead of rising. must. in the
near future fall even though paid for in
appreciated dollars, because of the many
who want employment and must take II at
any price to save themselves ard their
families from starving. With no wages
the UNEMPLOYED laborers could buy neither
food nor clothing. and the diminished de-
m;lnd would cause the prices OF grain, cot
ton and all farm products to fall, as is al
ways the case, even in small panics and
such want. suffering and misery would be
entaiied upon the laboring classes we
heLyc never known before.
OF course ali mortgages past due or In de-
xAult would be Immediately called In. and