Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-08-13

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appeal to them to consider the interests
of posterty. We do not live for our
selves alone; our labor our self-dental
and our anxious cafe-=all these are for
those who are to come after us as much
as for ourselves, but we cannot protect
our children beyond the period of our
lives. Let those who are now reaping ad-
vantage from a vicious financial system
remember that in the years to come their
own children and their children's chill
dren may, through the operation of this
same system, be made to pay tribute to
the descendants of those who are wrong
ed today
As against the maintenance of. a gold
standard, either permanently or until
other nations can be united for its over
throw the Chicago platform presents a
clear and emphatic demand for the imme-
date restora ton of the free and unlimit-
ed coinage of silver and gold at the pres
ent legal ratio of 16 to l without waiting
for the aid or consent of any other ma
ton. We are not asking that new eX-
pertinent be tried; we are insisting upon
a return to a financial policy approved
by the experience of history and support
ed by all the prominent statesmen of our
nation from the days of the first presi-
dent down to 1873. When we ask that
our minis be opened to the free and I'M
limited coinage of silver into full legal
tender money we are simply asking that
the same mint privileges be accorded to
silver that are now accorded to. gold.
When we ask that this coinage be at the
ratio of 16 to / we simply ask that our
gold coins and the standard silver dollar
which, be it remembered, contains the
same amount of pure silver as the first
silver dollar coined at our mints-retaln
their present weight and fineness.
The theoretical advantage of the BIZ
metallic system is best stated by Eu-
ropean writer on political economy, VINO
suggests the following illustration:
"a river fed from two sources is more
uniform in volume than river fed from
one source, the reason being that when
one of the feeders is swollen the other
may be low, whereas, river which has
but one feeder must rise or fall with that
feeder. So, in the case of bimetall1sm,
the volume of metallic money receives
contributions from both the gold mines
and the silver mines, and therefore va
ries less and the dollar resting upon two
metals is less changeable in its purchas-
ing power than the dollar which rests on
only one metal"
If there are two kinds of money the OPP
ton must rest either with the debtor or
with the creditor. Assuming that their
rights are equal, we must look at the in
terests of society in general to determine
to which side the option should be given
Under the bimetallic system gold and sill
yer are linked together by law al fixed
ratio, and any person or persons owning
any quantity of either metal can have the
same converted into full legal tender
money. If the creditor has the right to
choose the metal in which payment shall
be made it is reasonable to suppose that
he will prefer the debtor to pay in the
dearer metal If there is any perceptible
difference between the bullion values of
the two metals. This new demand Gre
ated for the dearer metal will make that
metal dearer still, while the decreased de-
mand for the cheaper metal will make
q r. other
hand, the debtor exercises the option, 1t is
reasonable to suppose that he will pay in
the cheaper metal If one may be percepti-
bly, cheaper than the other, but the de-
mand thus created for the cheaper metal
will raise it's price, while the lessened de-
mand for the dearer metal will lower its
price. In other words, when the creditor
has the option, the metals are held to-
gether 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 ex-
ercised by the debtor. Indeed, there can
be no such thing as real bimetallism I'M
less the option is exercised by the debtor
The exercise of option by the debtor COM
pels the creditor class whether domestic
or foreign, to exert themselves to main
tain the parity between gold and silver
at legal ratio, whereas they might find
a profit in driving one of the metals to
dearer metal The right of the debtor to
choose the coin in which payment shall
be made extends to obligations due from
the government as well as to contracts
between individuals.
A government obligation is simply a
debt due from all the people to one of
the people, and it Is impossible to justify
a policy which makes the interests of
one person who holds the obligation SUI
perior to the rights Of the many who
must be taxed to pay it. When, prior to
1873 silver was at a premium it was
never contended that national honor re-
quired the payment of government OBJ
legations in silver, and the Matthews
resolution adopted by congress in 1878
expressly asserted the right of the Unit
ed States to redeem coin obligations in
standard silver dollars as well as in gold
coin.
Upon this subject the Chicago platform
reads: I'VE are opposed to the policy
and practice of surrendering to the hold
ers of the obligations of the United
States the option reserved by law to the
government Of redeeming obligations in
either silver coin or gold coin"
1t Is constantly assumed by some that
the United States notes, commonly call
ed greenbacks and the treasury notes
issued under the act of 1890 are RESPONSE
BILE for the recent drain upon the gold re-
serve, but this assumption is entirely
without foundation. Secretary Carlisle
appeared before the house committee on
appropriations on January 81, 1895. and I
quote from the printed report of his tes-
timony before the committees
Mr.. Sibley-I would like to ask you
(perhaps not entirely connected with the
matter under discussion) what objection
there could be to having the option of
redeemng 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 re-
sumption-and 1 am not saying this for
the purpose of criticising the action of
any of my predecessors or anybody else
but if the policy of reserving to the
government at the beginning of resump-
ton, the option of redeeming in gold or
silver all its paper presented I believe it
would have worked benefieially, and
there would have been no trouble grow
} ing out of it, but the secretaries of the
treasury from the beginning of resump-
|ition have pursued a policy of redeeming
lin gold or silver at the option of the
|,holder of the paper. and If any secretary
I had afterward attempted to change the
policy and force silver upon man who
wanted gold and gold upon a man who
wanted silver and especially if he had