Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-08-21


pay in the better money il there is
any perceptible difference between the
bullion values of the metals This
new demand created for the better
metal will make that metal
dearcr still. while the decreased
demand ior the cheaper metal will
make that metal cheaper still. On
the other hand, if the debtor exercises
the option, it is reasonable to suppose
that he will pay in the cheaper metal
ii one metal is perceptibly cheaper
than the other; but the demand thus
created for the cheaper metal will
raise its 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 de-
mand created is sufficient to absorb all
OF both metals presented at the mint.
Society is therefore interested in
having the option exercised by the
debtor. Indeed, there can be no such
thing as real bimetallism unless the
option is exercised 10y the debtor.
The exercise OF the option by the
debtor compcls the creditor classes,
whether domestic or foreign, to exert
themselves to maintain the parity be-
tween gold and silver at the legal
ratio, whereas they might find a profit
in driving one of the metals to prem.
ium il they could then demand the
dearer metal. The option OF the
debtor to choose the coin in which
payments shall be made extends to
obligations due the government as
we'll as 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 policy which makes the in
terests OF one person, 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
a premium, it was never contended
that national honor required the pay
ment OF government Obligations in
silver, and the Matthews resolution
adopted by Congress in 1873 asserted
the right of the United States to re-
deem coin obligations in standard sill
yer dollars, as we'll as in gold coin.
Upon the subject the Chicago plat
form reads
Wo 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 such
obligations in either silver or gold
coin"
It is constantly assumed by some
that the United States notes, COM
monty called greenbacks, and the
treasury notes issued under the act of
1890, are responsible for the recent
drain upon the gold reserve. But this
assumption is entirely without founda-
ton. Secretary Carlisle appeared be-
fore the House Committee on Ap-
preparations on July 81, 1895, and I
quoted from the printed report of his
testimony:
"Mr. Sibley-I would like to ask
you, perhaps entirely connected with
the matter under discussion, what OBJ
lection there could be OF having the
option OF redeeming either in silver or
gold with the treasury instead OF the
noteholder."
Carlisle-If that policy had been
adopted at the beginning of the re-
sumption, and I 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
resumption the option Of redeeming
in gold or silver all its paper pre-
scented. believe it would have worked
beneficially, and there would have
been no trouble. But the Secretaries
of the Treasury from the beginning OF
resumption have pursued policy OF
redeeming in gold or silver at the op-
ton of the holder of the paper, and if
any Secretary had afterward attempted
to change that policy and force silver
upon man who wanted gold, or gold
upon a man who wanted silver, espe-
cially if he made the attempt at such
critical period as we have had in the
last two years, my judgment is it
would have been disastrous.
THE BOND ISSUES.
do not agree with the Secretary
that it was wise to follow bad prec-
edent, but from his answer it will be
seen the fault does not lie with the
greenbacks and the treasury, but with
the executive officers who have seen
fit to surrender right which should
have been exercised for the protection
of the interests of the people. This ex-
ecutive action has already been made
the excuse of more than $3.50, 600 600
in bond issues, and it is impossible to
estimate the amount OF bonds which
may hereafter be issued if this policy
is continued. We are told that any
attempt upon the part OF the govern
ment to redeem its obligations in sill
cold hnt