The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-08-22


upon business conditions. y
When Mr.. Sherman describes contraction
of the currency as disastrous 10 all the people
except the capitalist ont of debt and those
who stand in position similar to his, he IS
stating truth which must be apparent to
every person who will give the matter care
full consideration. Mr. Sherman was at that
time speaking of the contraction of the vol
ume of paper currency, but the principle
which he set forth applies if there is con
traction of the volume of the standard money
of the world.
MR.. BLAINE ON THE D.MoNETIzATIoN OF
SILVER.
Mr.. Blaine discussed the same principle in
connection with the demonstration of silver.
Speaking in the House of Representatives on
the 9TH of February, 1873, he said: 81 be-
lieve the struggle now going ON in this coun-
try and other countries for single gold stan.
dard would, if successful, produce widespread
disaster in and throughout the commercial
world The destruction of silver as money
and the establishing of gold as the sole unit
of value must have a ruinous effect on all
forms of property except those invested which
yield fixed return in money. These would
be enormously enhanced in value, and would
gain a disproportionate and unfair advantage
over every other species of property"
THE GLASSES AND THE ''MAssEs."
Is it strange that the .'holders of invest
ments which yield fixed return in money
can regard the destruction of silver with COM
placeney? May we not expect the holders of
other forms ofproperty TO protest against CIV
ing ''disproportionate aud unfair advantage
over over every other species of property 2
If the relatively few whose wealth consists
largely in fixed investments have right to
kall To anh no val nI
investments, have not the rest of the people
the right to use the ballot to protect them
selves from the disastrous consequences of a
rising standard? The people who must pur-
chase money with the products of toll stand
in position entirely different from those who
own money or receive fixed income. The
well being of the nation-aye, of civilization
itself-depends upon the prosperity of the
masses.
PARITY BETWEEN MONEY AND PROPERTY.
What shall it profit us TO have dollar
which grows more valuable every day if such
a dollar lowers the standard Of civilization
and brings distress to the people? What
shall it profit MS if in trying to raise our credit
by increasing the purchasing power of our
dollar we destroy our ability to pay the debts
already contracted by lowering the purchas-
ing power of products with which those debts
must be paid? If it il asserted, as il con
stantly is asserted, that the gold standard will
enable us to borrow more money from abroad,
| reply that the restoration of bimetallism will
restore the parity between money and prop
erty, and thus promote an era of prosperity
which will enable the American people 10 be-
come loaners of money instead of perpetual
borrowers. Even if We desire to borrow, how
long can we continue borrowing under Sys-
TEN which, by lowering the value of prop
erty, weakens the foundation upon which
credit rests?
HOLDERS or FIXED INVESTMENTS.
Even the holders of fixed investments,
though they gain an advantage from the APP
probation of the dollar, certainly see the in
Justice of the legislation which gives them this
over those whose incomes depend
upon the value of property and products. If
the holders of fixed investments will not lis
ten to arguments based upon justice and
equity, | appeal to them to consider the in
terests of posterity. We do not live for our
selves alone Our labor, our self-denial and
our anxious care-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 advantage from a vicious inan-
cial system remember that in the years to
come their own children and their childrens
children may, through the operation of
this same system. be made to pay tribute to
the descendants of those who are wronged
today.
FOR IMMEDIATE FREE COINAGE.
As against the maintenance of gold stand
ard, either permanently or until other nations
can be united for its overthrow, the Chicago
platform presents clear and emphatic de-
mand for the immediate restoration of the
free and unlimited coinage of silver and gold
at the present legal ratio of 16 TO l without
waiting for the aid or consent of any other
nation. We are not asking that new ex-
pertinent be tried; we are insisting upon re-
turn to financial policy approved by the ex-
perenee of history 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 minis be opened to the
free and unlimited 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 l, we
simply ask that our gold coins and the stand
ard silver dollar-which, be il remembered,
contains the same amount of pure silver as the
first silver dollar coined at Cur mints-retain
their present weight and fineness.
ADVANTAGES OF BIMETALLIsM.
The theoretical advantage of the bimetallic
system is best stated by "A European writer on
political economy, who suggests the following
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;
river which has but one feeder
must rise or fall with that feeder So, in the
case of bimetallism, the volume Of metallic
money receives contributions from both the
gold mines and the silver mines, and, there
fore, varies less, and the dollar resting upon
two metals, is less changeable in its purchas-
ing power than the dollar which rests on one
metal only.
If 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 order to determine to which side
the option should be given. Under the BIZ
metallic system gold and silver are linked to-
gether by law at fixed ratio, and any person
or persons owning any quantity ofeither 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 require the debtor to pay in the dearer
metal il there is any percephble difference
the bullion values of the metals.
This new demand created for the dearer metal
will make that metal dearer still, while the
decreased demand for the cheaper metal will
make that metal cheaper still.
RIGHTS OF THE DEBTOR.
If, on the other hand, the debtor exercises
the option, it is reasonable to suppose that he
will pay the cheaper metal if one metal is per-
ceptibly cheaper than the other, but the de-
mand 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 the ratio fixed by
law, provided the demand 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 by
the debtor. The exercise Of the option by
the debtor compels the creditor classes,
whether domestic or foreign, to exert them
selves to maintain the parity between gold
and silver at the legal ratio, whereas they
might find profit in driving one of the met.
ais to a premium if they could then demand
the dearer metal The right of the debtor to
choose the coin in which payment shall be
u l. Al