The Van Buren press. [volume] (Van Buren, Ark.) 1859-1914, 1896-08-15

When we ask that our minis be opened
TO the free and unlimited coinage of sill
YER into full legal tender money we are
IMPLY asking that the same mint priv
leges be accorded to silver that are now
accorded TO gold. When we ask that
this coinage be at the ratio of sixteen
TO one we simply ask that our gold coins
and the standard silver dollar which,
De 1t remembered, contains the same
amount of pure silver as the first sill
Yer dollar coined at our mines reta
their present weight and fineness.
Inc theoretical advantage of the BIZ
metallic system is best stated by Euro
pean writer on political economy who
suggests the following Illustration: A
river FED from two sources is more uni
form IN volume than river fed from
one soufce-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 bimetal-
ism; the volume of metallic money re-
celVes contributions from both the gold
and silver mines and therefore varies
less; and the dollar. resting upon two
metals is less changeable in its purchas-
one metal only.
II there are two kinds of money. the
option must rest either with the debtor
or with the creditor Assuming that
their rights are equal, we must look at
the interests of society in general in or
der to determine to which side the option
should be given Under the bimetall.c
system gold and silver are linked to-
Sether by law at fixed ratio, and any
person or persons owning any GUAM ity
OF either metal can have the same con-
yerted into full legal tender money. If
the creditor has the right to choose the
metal In which payment shall be made,it
reasonable to suppose that he Will
require the debtor to pay in the dearer
metal, II there is any perceptable differ
ehce between the bullion values of he
metals This new demand created for
the dearer metal will make that metal
ueafer Still, while the decreased demand
Tor the cheaper metal will make that met
al cheaper still
Ii, on the other hand, the debtor exer-
clses the option it is reasonable to sup
pose that he will pay in the cheap metal
II one metal Is perceptibly cheaper than
the other, but the demand thus created
FOR the cheaper metal will raise its price,
While the lessened demand for the dearer
metal will lower 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 a ratio
fixed by law; provided the demand Gre
ated is sufficient to absorb all of both
metals presented at the mint Society
is therefore interested in having the op-
ton exercised by the debtor Indeed
there can be no such thing as real bmet-
allism unless the option is exercised 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 par
1ty between gold and silver at the legal
ratio, whereas they might find profit
in driving one of the metals 10 premium
If 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 gov
eminent as ell as frmo contracts between
individuals. A government obligation is
simply debt due from all the people to
one of the people, and it is impossible TO
justify policy which makes the inter-
ests of the one person who holds the obi
CATION superior to the rights of the many
who must be taxed to pay for it. When,
prior to 1873, when silver was at prem
ium,it was never contended that national
honor required the payment Of govern
ment obligations in silver and the Mat
tbes resolutions, adopted by congress in
1878, expressly asserted the right of the
United States to redeem coin obligations
in standard silver dollars as well as in
GOLD pOip TTnn,, thic c111i
platform reads: I'VE are opposed to the
policy and practice of surrendering to the
holders of obligations of the United
States the opt on reserved by law to the
government of redeeming such oblga-
lions in either silver coin or gold coin"
Drain of the Gold Reserve
1t is constantly assured by some that
the United States notes, commonly called
greenbacks, and the treasury notes issued
under the act of 1890, are resposibe for
the recent drain upon the gold reserve,
but this assumption is entirely without
foundation. Secretary Carlisle appeared
before the House Committee ON Appro-
priations ON January 10, 1895, and quote
from the pr nted report of his testimony
before the committee:
Mr.. Sibley-I would like to ask you per
haps not entirely connected with the mat
ter under discussion), what objecti n there
could be to have the option of redeeming
In either silver or gold lie with the treasury
instead of the noteholder?
Secretary Carlisle-If that policy had been
adopted at the beginning of resumption
and l am not saying this for the purp Sc
of criticising the action or any of my pre-
decessors or anybody else-but If the policy
of reserving to the government at the be-
ginning of resumption the option of redeem
ing in Id or silver all its paper presented,
had been adhered to, l believe II would have
worked benefcally and there would have
been no trouble growing out 4 1T, but the
secretaries of the treasury from the be-
ginning of resumption have pursued policy
Of redeeming in gold or silver at the opti n
of the holder of the paper, ana to after
ward attempt to change that policy and
force silver upon a man who wanted gold,
Or gold upon a man who wanted silver, and
especially If that attempt was made at such
a critical peri as we have had in the last
two years, in my judgment it would have
been very disastrous.
| don't agree with the Secretary that 1t
was wise to follow a bad precedent, but
from his an. wer it will be seen that the
fault does not lie with the greenbacks
and treasury notes, but rather with the
executive officers who have seen fit to
surrender a right which should have
been exercised for the protect on of the
interests of the people This executive
action has already been made the ex
cuse for the issue of more than S250,-