The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1910-03-31
new NEWS OF YESTERDAY
Drop in Market That Puzzled a
Great Banker.
John Thompson, Creator Of National
Banking System, Could Not Un.
derstand Why the Price of
Silver Declined. /,
Ry e. j. EDWARDS.

BY e. j. EDWARDS.
Seemingly, though not actually.
frail, of slender physique, grizzly hair
and gray bearded, with snowy white
but %unstarched linen, a dickey collar,
an old-fashioned cravat, low shoes
and home knitted wooden stock
ings-such in the closing years of his,
life was the physical appearance and
dress Of John Thompson, the man
whose name was known to every bank
er and storekeeper in the United
States before the civil war as the au1
thor of >'Thompson's Banknote Re!
porter" and to men of finance the,
world rel from 1852 on as the crel
ator of the national banking system
=; So he looked one day in 1890 when,
I called upon him at the time that con-
gress vas discussing the bill that aft
erwards became known as the Sher1
man silver law. which provided for the,
monthly purchase of silver bullion by
the government, with the idea that
such action would keep silver from,
being demonetized despite it's enor!
nous production in excess of the pro-;
duction Of gold. ;
"Mr. Thompson" I said, while the
old gentleman took from a %capacious,
coat pocket a little bunch of tobacco,
leaves, tore off one, rolled it in his
fingers, and tucked the impromptu
twist in some mysterious cavern in
the back of his mouth, 81 have been,
told that you are an ardent support
er of the proposed silver law now
before congress-"
Why, of course I am" he said, "and|
l heartily believe in silver as a money!
metal that would easily pass current
II 1t had a fair chance. But silver has
been abused by our government.
There isn't anything the matter with
it except unfair Observation-Disclosures
1nation against it in favor of gold.
But" and here the old gentleman
chuckled, "it is going to have fair
treatment, and I am telling all my
friends who think I'm crazy because 1
say silver and gold should be the
money of the country at a fair ratio
say sixteen to one-that I'm going
to demonstrate it, and Uncle Sam is
going to demonstrate it, too"
This, parenthetically, was several
years before the national campaign in
which the silver issue was paramount.
All that was said then in favor of sill
We was thus compacted into a few
sentences by John Thompson, founder
OF the first of the national banks, now
n of the greatest banking institu.
lions of the world, and a multi-mil-
lionaire.
you know" he continued, with an
other chuckle, they say that money
talks. Well, that's the way that 1 am
going to talk to my friends. I am
going to make converts of them by let
ting them hear money talk. They call
me a silver proselyter. Well, this is
the way I am PROSECUTING. I've got a
little document here that's going to be
the greatest silver argument that any
one can OFFER"
He took from a drawer of his desk
a piece of paper, read what was writ
ten upon it and then, turning it v
showed me a list Of six names written
In pencil upon the back. Several of
these names were of prominent fnan-
c1ers who had spoken publicly against
the proposed silver law.
d, Il bought a put for quite a little
sum of money! won't tell you how
much-a few months ago, when silver
was pretty low" said the old gentle
man. 1.-The option runs for a month
yet. Before it expires, if the silver
law passes congress-and it is going
to-the price of silver, on a parity
with gold, will be on a ratio of sixteen
to one. Then Pm going to put my OBJ
ton to the broker l bought it of, take
my profits, and divide the profits
among these six men. That'n be quite
a little penny for each of them, and 1
guess it will be a convincing argu,
ment, proving to them that old John
Thomuson isn't crazy, after all, but
right" And this picturesque possessor
OF a fortune Of ten millions, made in
banking, smiled broadly in anticipa-
ton OF the victory over his friends
that he saw ahead Of him.
But upon the day, some little time
after the Sherman silver law was
passed, that the option became avail
able, the price of silver fell, and Mr..
Thompson lost the money that he had
risked upon that argument. IT don't
understand it," he said to me, with a
mystifed shake of his head. 81 don't
understand it. Silver ought to have
gone to a parity with gold at sixteen
to one. There's a kink somewhere-I
don't understand It,"
And this was John Thompson. crea.
tor OF our national banking system.
who could not see that the enormous
production Of silver, as compared with
the production of gold, had, in spite of
government legislation, aimed to boost
up the price of silver, caused the price
to drop under the well-known eco
nom1c law Of supply and demand.
copyright, 1903, by E. J. Edwards.)
Musical Notes.
The musical young woman who
dropped her peekahOo waist IN Tho