The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1910-01-13
A MARKET DROP
THAT PUZZLED A
GREAT BANKER
Az s. j. EDWARDS.

Seemingly. though not actually frail.
lof slender physique. grizzly hair and
NIEray bearded, with snowy white, but
anstarched linen. q dickey collar, an old.
fashioned cravat, low shoes and home
knitted wooden stockings-such In the
closing years OF his life was the physi-
lcal appearance and dress of John
Thompson, the mar whose name
known to every banker and storekeeperi
In the United States before the civil
war, as the author Of "Thompson.s
Banknote Reporter" and to me OF
finance the world over from 1862 on
as the creator Of our national banking
system.
SO he looked one day III 1890 when I
calied upon him at the time that con-
gress was discussing the bill that after
wards became known as the Sherman
silver law, which provided for the
monthly purchase of silver bullion by
The government, with the idea hat such
action would keep silver from being de-
monetized despite Its enormous produc-
tion in excess Of the production of gold.
NJ Thompson. ! said, while the
old gentleman took from q capacious
coat pocket a little bunch OF tobacco
leaves. tore off one, rolled It in .his
fingers and tucked the imprornptu twist
In some mysterious cayern In the back
Of his mouth. II have been told that
you are al ardent supporter OF the pros
posed silver law now before congress-"
why. of cours I am" he said, and
I heartily believe in silver as a money
metal that would easily pass current
If it had a fair chance. But silver has
been abused by our government. There
Isn't anything the matter with it x
cept unfair Observation-Disclosures
against it in favor of gold. But" and
here the old gentleman chuckled, lit
Is going to have fair treatment and /
am telling all my friends who think I'm
crazy because / say silver and gold
should be the money Of the country at
q fair ratio-say sixteen to one-that
I'm going to demonstrate It, and Uncle
Sam is going to demonstrate 1t, 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
silver was thus compacted into a few
sentences by John Thompson, creator
of our national banking system, found
er of the first of the national banks,
now n Of the greatest banking insti-
buttons Of the world, and a multimil-
lionaire.
You know" he continued with an
other chuckle, they say that money
talks. Well, that's the way that I am
going to talk to my friends. / am
going to make converts Of them by
letting them hear money talk. They
call me a silver proselyter. Well, this
Is the way I'm PROSECUTING. I've got q
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 written
upon it n then, turning 1t over,
showed me a list of six names written
in pencil upon the back. Several Of
these names were of prominent finan-3
ciers, who a spoken publicly against
the proposed silver law.
IT bought a put for quite little sum
of money! won't tell you how much
q few months ago when silver was pref
ty low" chuckled the old gentleman.
THE option runs for a month yet. Be
fore it expires, ii the silver law passes
congressman it is going to-the price
of silver, on a parity with gold, will
be On a ratio Of sixteen to one. Then
I'm going to put my option to the
broker I bought it of, take my profits,
and divide the proceeds among those
six men. That'll be quite a little penny
for each of them, and I guess 1t will
be a convincing argument, proving to
them that old John Thompson isn't
crazy after all. but right" And this
picturesque possessor of a fortune Of
ten millions, made in banking, smiled
broadly in anticipation 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 he had
risked upon that argument. IT don't
understand it," he said to me, with q
mystified shake of his head. IT don't
understand it. Silver ought to have
gone to a parity with gold at sixteen
to one. There's q kink somewhere
\ don't understand H. Sr 81
And this was John Thompson, cre-
ator of u national banking system.
who could not see hat 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 economic
law Of supply and demand.
Copyright, 1909. by e. j.. Edwards.)
Persian Justice.
The revolutionary party in Persia Is
l rtrcIJ1Qftnp on nOEfoar 7a onI IN lo~,or