The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1896-08-19

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writer on political economy who suggests
the following illustration: a river fed
! from two sources IS more uniform IL VOL
une than a river fed from one source tie
reason being that whcn enc of the feeders
is swollen the other may be low. whereas
q river which has but one feeder must rise
CT fall with that feeder So in the case Of
! bimetallism The volume Of metallic mon
cy receives contributions from both tlc
/ cold mines and the silver mines, ard
therefore varies less, and the dollar. rest
I ing upon two metals, is less changcablc IN
its purchasing power than the dollar which
rests on one metal only.
! If there are two kinds of money, the op-
ton must rest either with the debtor or
With tie creditor Assuming that their
rights arc equal. we must look at the III
tcrcsts of society in general IN order to de-
terinirc to which side the option should be
! given UrGer the blMctallic system gold
and silver are linked together by law at (,
! fixed ratio, and any person or persons
! owning any quantity Of either metal can
have the same converted into full legal
tender money. Il the creditor has the right
to choose the metal i'll which payment
shall be made, it is reasonable to suppose
that he will require the debtor to pay IN
the dcarcr metal if there is any perceptlble
difference between the bullion values OF
the metals This new demand created for
the dearer metal will make that metal
Gcarcr still while the decreased demand
for the cheaper metal will make that metal
cheaper still. If. on the other hand. the
debtor exercises the option 1t is reasonable
to suppose that he will Fay in the cheaper
metal if one metal is rcrccptibly cheaper
than the other, but the demand thus Great
cd for the cheaper metal will raise It's
price. while the leSSencd demand for the
dcarer metal will lower its price. In other
words when the creditor has the option,
the metals arc drawn apart, whereas
when the dcEtcr has the option the metals
arc held together approximately at the ratio
fixed by law, provided the demand created
is sufficient TO absorb all of both metals
presented at the mint. Society IS there
fore interested in having the option cxer-
cised by the debtor. Indeed there can be
10 such thing as real bimctallism unless
the option IS exercised by the debtor. The
exercise of the option By the debtor
compcls tic creditor classes whether
domestic or foreign, to exert themselves
! to maintain the parity between gold
and silver at the legal raAio. whereas
they might find a profit in driving
one of the metals to {. premium if they
could then demand the dearcr metal. The
right of the debtor to choose the coin IN
which payment shall be made extends 10
obligations due from the government as
well as to contracts between individuals.
A government obligation is simply q debt
due from all the people TO one OF the pco-
pie, and it is impossible to justify policy
which makes the interests Of the one per
son who holds the o:lig;sti"': &UIcrlcr to
the rights of TIC many who i:lust bc taxed
to gay it, When. prior to 1873, silver wa;
at a premium. it was never contcnded THAI
national honor required the payment o.
government obligations IL silver. ana the
Matthews resolution: adopted by congress
in 1878. expressly asserted the right OF the
United States TO redeem coin Obligations
in standard silver dollars as we'll as IL gold
coin.
Jpon this subject the Chicago platform
reads, '.We are opposed to the policy and
practice of surrcndcring to the holders OF
the obligations OF the United States the
option reserved By law to tie government
of redceming such obligations III either sill
yer coin Or gold coin .
Carlisle's Testimony.
1t is constan -ly assumed by some ttat
the United States notes. commonly called
greenbacks, and the treasury notes. issued
under the act of 1890, arc responsible tor
the recent drain upon the gold reserve, but
this assumption is entirely without foun-
dation. Secretary Carlisle appeared before
the house committee on appropriations on
Jan. 81. 1895, and I quote from the printed
report of his testimony before the commit
tee:
Mr. Sibley-I would like to ask you
(perhaps not entirely connected with the
matter under discnssion) what objection
there could be to having the option OF re
deeming either in silver or gold lie with
the treasury instead of the note holder:
Secretary Carlisle-If that policy had
been adopted at the beginning OF res'mF-
tion-and am not saying this for the p1:r-
pose of crjticising tic action o. any
of nv predecessors or anybody cisc-the
policy of rcscrying TO the government: at
the beginning OF resumption. the option CT
redeeming in gold CT silver all It's paper
presented. believe it wcUld have WORKED:
bereficially. and there woald have Been &c
trouble growing cut OF it. but Tie secre-
tarics OF the treasury from the beginning
of resumption have pursued. Il policy Of re
dcenins in gold or silver at 1hc option OF
the holder OF the parcr. and If any secre- !
tary had af:c2wa-d attempted 10 charge
that policy ard force silver upon mar
who wanted gold. CT gold upon Il lnan who /
wanted silver and especially ii Ec had
made that attempt at s.ich a critical !'er;od
as we have had in the last two years, my
Judgment is it would have been very ais'ss-
! trOuS.
1 do rot agree With the secretary that 1t
was wise to follow Il bad precedent. but
fro1., his answer it will BE seen t.:;it the
fault does not lie With the @rcen'2aeks and
treasury notes. but rather with tie cxecli- I
tive officers who have seen tit 70 si:rrcnderi
/. right which should have been exercised
! for the protection of thc interests CT thei
people. This executive action has already
been made the excuse for Tie issue of noret
4,,,,, co,O 1(fN 0uO Il, bonds and IL is i'm l