The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1896-08-20
HENDERSON, N. c., THURSDAY AUGUST 20, 1896.

rowing under q system which, by lower
Ing the value Of property, weakens the
foundation upon which credit rests?
Even the holders Of fixed investments,
though they gain an advantage from the
appreciation OF the dollar, certainly see the
injustice of the legislation which gives
them this advantage over those whose in
comes depend upon the value of property
and products. If the holders Of fixed in
vestments will not listen to arguments
based upon justice and equity, 1 a., to
them to consider the interests of pos. -. ity
We do not livefor ourselves alone Our la
Dor, our self denial and our anxious care
all these are for those who are to come aft
er US as much as for ourselves, hut we can
not protect our children beyond the period
of our lives Let those who are now reap
ing advantage from o vicious financial sys-
tenn remember that in the years to como
their own children and their children's
children may, through the operation Of
this same system, be made to pay tribute
to the descendants of those who arc
wronged today.
AS against the maintenance Of a gold
standard, either permanently or until 9th
er nations can be united for its overthrow,
the Chicago platform presents clear and
emphatic demand for the immediate res
toration of the FREQ and unlimited coinage
of silver and gold at the present legal ratio
of IL to without waiting for the aid or
consent of any other nation. We are not
asking that new experiment be tried. We
are insisting upon u return to a financial
policy approved by the experience of his
tory and supported by all the prominent
statesmen of our nation from the days of
the first president down to 1873. When we
ask that our mints be opened to the free
and unlimited coinage Of silver into full
legal tender money, wo are simply asking
that the same mint privileges bo accorded
to silver that are now accorded to gold.
When we ask that this coinage be at tho
ratio Of 1G to l, we simply ask that our gold
coins and the standard silver dollar,
which, be it remembered. contains the
same amount of pure silver rs the first sill
vcr dollar coined at our mints, retain their
present weight and Hneness.
Theory Of Bimetallism.
The theoretical advantage of the bimetal-
lie system is best stated by European
writer on political economy who suggests
the following illustrations: A river fed
from two sources is more uniform IN vol
ume than q river fed from one source, the
reason being that when one of tho feeders
is swollen the other may bc low, whereas
O river which has but one feeder must rise
or fall with that feeder. So in the case Of
bimetallism. The volume of metallic mon.
ey receives contributions from both tho
gold mines and the silver mines, and
therefore varies less, and tho dollar, rest
ing upon two metals, Is less changeable in
jtc ahnc ha tho do h ich
rests on ono metal only.
If there are two kinds of money, the op-
ton must rest either with the debtor or
with tho creditor. Assuming that their
rights are equal, we must look at the in
terests of society in general in order to de-
termine to which side the option should be
g,vei Under the bimetallic system gold
and silver are linked together by law at q
fixed ratio, and any person or persons
owning any quantity of either metal can
have the same converted into full legal
tender money. II the creditor has the right
to choose the metal in which payment
| shall be made, 1t y reasonable to suppose
that he will require the debtor to pay in
the dearer metal if there is any perceptible
difference between the bullion values Of
the metals. This now demand created for
the dearer metal will make that metal
| dearer still, whilo the decreased demand
| for the cheaper metal will make that metal
| cheaper still. If, on the other hand, the
| debtor exercises the option, it Is reasonable
to suppose that ho will pay in the cheaper
metal If one metal is perceptibly cheaper
than the other. but the demand thus Great
ed for the cheaper metal will raise its
price, while the lessencd demand for the
dcarer metal will lower it's price. In other
! words, when the creditor has the option,
the metals are drawn apart, whereas
when the debtor has the option the metals
are 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 aving the option exer-
| cised by the de- t.r Indeed there can be
| no such thing real bimetallism unless
|, the option Is excl ciscd by the debtor. The
| exercise Of the option by the debtor
| compels the creditor classes, whether
| domestic or foreign, to exert themselves
| to maintain the parity between gold
| and silver at the legal ratio whereas
! they might find q profit in driving
one of the metals to a premium ii they
| could then demand the 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
we'll as to contracts between. individuals.
A government obligation is simply a debt
due from all the people to one Of the peo-
pie, and 1t is impossible to Justify policy
which makes the interests Of the one per-
son who holds the obligation superior to
the rights Of the many who must be taxed
to pay it. When, prior to 1873, silver was
| at premium, it was never contended that
I <ho ~
government obligations in silver, and 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 in gold
coin.
Upon this subject the Chicago platform
reads, 1--WE are opposed to the policy and
practice Of surrendering to the holders of
the obligations of the United States the
option reserved by law to the government
of redccming such obligations in either sill
yer coin or gold coin.''
Carlisle's Testimony.
1t is constantly assumed by some that
the United States notes, commonly called
| grecnbacks and the treasury notes, issued
under the act Of $780, are responsible fol-
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 1885, and quote from the printed
report Of his testimony before the commit
tee:
MIR. 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 re-
decming 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 resump
tion-and am not saying this for the pur'
pose of criticising the action Of any
OF my predecessors or anybody else-ths
policy Of reserving to the government, al
the beginning Of resumption, the option OF
rcdeeming in gold or silver all its papel
presented, believe it would have worked
beneficially, and there would have been nc
trouble growing out OF 1t, but the secre
| oF ko he hoori nj n q