The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-08-22
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| 1t is constantly assumed by some that the
! United States notes, commonly called green
backs. and the Treasury notes, issued under
the act of 1890, are responsible for the recent
drain upon the gold reserve, but this assump-
ton is entirely without foundation. Secretary
| Carlisle appeared before the House commit
tee ON appropriations ON January 81, 1895,
and quote from the printed report of his
testimony before the committee
''Mr Sibey, would like to ask you (per-
haps not entirely connected with the matter
under discussion) what objection there could
be to having the action of redeeming either
in silver or gold lie with the Treasury instead
of the noteholder?'
Secretary Carlisle-''lf that policy had been
adopted at the beginning of resumpton-and
| am not saying this for tine purpose OF crltl-
eising the action of any of my predecessors or
anybody else-but if the policy of reserving
to the Government at the beginning of re-
sumption the option Of redeening in gold or
silver all its paper presented. / belive IT would
have worked beneficially and there would have
been no trouble growing out OF 1t, but the
Secretaries of the Treasury from the begin
ming of resumption have pursued policy OF
redeeming in gold or silver at the option OF
the holder of the paper, and IT any Secretary
had afterward attempted to change that policy
and force silver upon man who wanted goid
especialIy if he had made that attempt atsuch
critical period as we have had in the last
two years, my Judgment is it would have been
very disastrous
THE ISSUE OF BONDS.
do not agree with the Secretary that 1t was
wise to follow bad precedent, but from his
answer it will be seen that the fault does not
lie with the greenbaeks and Treasury notes,
but rather with the executive officers who
have seen fit TO surrendera right which should
have been exercised for the protection of the
interests of the people. The executive action
has already been made the excuse for the
issue of more than $3.50, 900, 000in bonds, and
il 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 Government at
this time to redeem its obligations in silver
would put a premium upon gold, but why
should it? The Bank of France exercises the
right to redeem all bank paper in either gold
or silver, and yet France maintains the parity
between gold and silver at the ratio of 10! to
and retains in circulation more silver per
capita than we do in the United states.
RELIEF UNDER GOLD STANDARD.
Ii NAV be further answered that our oppo-
nents have suggested no feasible plan for
avoiding the dangers which they fear. The
retirement of the greenbacks and Treasury
notes would net protect the Treasury, because
the same policy which now leads the Secretary
of the Treasury to redeem all Government
paper in gold, when gold is demanded. will
require the redemption of all silver dollars
and silver certificates in gold if the green
backs and Treasury notes are Withdrawn from
circulation. More than this, if the Govern
ment should retire its paper and throw upon
the banks the necessity of furnishing coin re-
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to furnish either gold or silver. In other
words, they would exercise the option just as
the Government ought TO exercise it now.
The Government must either exercise the
right to redeem its obligation in silver when
silver is more convenient, or it must retire all
the silver and silver certificates from circula-
ton and leave nothing but gold as lega-ten-
der money. Are our opponents willing to
outline n financial system which will carry out
their policy TO its legitimate conclusion, or
will they continue to cloak their designs in
ambiguous phrases?
BULLION VALUE OF SILVER.
There is an actual necessity for bimetallism
as well as theoretical defense of it. During
the last % years legislation has been creating
an additional demand for gold, and this law
created demand has resulted in increasing the
purchasing power Of each ounce of gold The
restoration of bimetallism in the United States
will take away from gold just so much of its
purchasing power as was added to It by the
decentralization of silver by the Uuited States.
The silver dollar is now held up to the gold
dollar by legal-tender laws, and not by re-
demption in gold because the standard silver
dollars are not now redeemable in gold either
in law or by administrative policy.
We contend that free and unlimited coinage
by the United Safes alone will raise the bull
r Il
thus make silver bullion worth Sl.29 per
ounce in gold throughout the world. This
proposition is in keeping with natural laws,
not in defiance of them. The best-known law
of commerce is the law of supply and demand.
We recognize this law and build our argument
upon il. We apply this law to money when
we say that reduction in the volume of
money will raise the purchasing power of the
dollar We also apply the law of supply and
demand to silver when we say that new de-
mand for silver created by law will raise the
price of silver bullion.
PRECIOUS METALS LIMITED.
Gold and silver are different from other
commodities in that they are limited in quanh-
". Corn, wheat, manufactured products,
ETC., can be produced almost without limit,
provided they can be sold at price sufficient
to stimulate production, but gold and silver
are called precious metals because they are
found, not produced. These metals have been
the objects of anxious search as far back as
history runs, yet, according to Mr.. Harvey's
calculation, all the gold coin of the world can
be melted into 22-foot cube, and all the sill
yer coined in the world into 66-foot cube.
Because gold and silver are limited, both in
the qantity now in hand and in annual pro
duction, it follows that legislation can fix the
ratio between them.
SUPPLY AND DEMAND.
Any purchaser who stands ready to take
the entire supply of any given article at GER
tain price can prevent that article from falling
below that price. So the Government can fix
price for gold and silver by creating de-
mand greater than the supply International
biInetallists believe that several nations. by
entering into an agreement 10 coin at fixed
ratio all the gold and silver presented, can
maintain the bullion value of the metals at
the mint ratio. When a mint price is thus
established it regulates the bullion price, be-
cause any person desiring coin may have the
bullion converted into coin at that price, and
any person desiring bullion can secure it by
melting the coin.
INTERNATIONAL. AND INDEPENDENT BIMETALL-
The only question upon which international
bimetallists and Independent bin stallists differ
is, Can the United States, by the free and nm.
limited coinage of silver at the present legal
ratio. create demand for silver which, taken
in connection with the demand already in ex-
istence, will be sufficient to utilize all the sill
yer that will presented at the minis? They
agree in their defense of the bimetallic prin-
eiple and they agree in unalterable opposition
to the gold standard. International bimetall-
lists cannot complain that free coinage gives a
benefit 10 the mine owner, because inter
national bimetallism gives to the owner of sill
yer all the advantages offered by independent
bimetallsm at the same ratio. international
bimetallists cannot acuse the advocates of free
silver of being "hullion-owners who desire to
raise the value of their bullion" or "debtors
who desire to pay their debts in cheap dol
lars" or "demagogues who desire to curry
favor with the people," They must rest their
opposition upon one ground only, namely:
That the supply of silver available for coinage
is TOO large to be utilized by the United States.
CAPACITY or AMERICA TO USE SILVER.
In discussing this question we must consider
the capacity Of our people to use silver and
the quantity of silver which can come to our
minis. 1t must he remembered that we live