The herald., 1896-08-13

dearest money, II there is any percepti-
BILE difference between the bullion val
ues of the metals.
This new demand created for the dear
er metal will make that metal dearer
still, while the decreased demand for
the cheaper metal will make that metal
cheaper still. On the other hand. If the
debtor exercises the option, it is rea-
sonable to suppose that he will pay in
the cheaper metal, if one metal is per-
ceptibly cheaper than the other; but the
demand thus created for the cheaper
metal will raise its price, while the less
ened 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 Gre
ated is sufficient to absorb all of both
metals presented at the mint.
THE DEBTORS OPTION
Society is therefore interested in hav-
ing the option exercised by the debtor.
| Indeed, there can be no such thing as
real bimetallism unless the option is ex-
ercised by the debtor. The exercise OF
the option by the debtor compels the
creditor classes, whether domestic or
| foreign, to exert themselves to main
| tain the parity between gold and silver
at the legal ratio, whereas they might
| find profit in driving one of the metals
to premium if they could then demand
the dear 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
| debt due from all the people to one of
the people and it is impossible to justify
| a policy which makes the interest of one
person who holds the obligation super
for 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 payment of government obligations
| in silver and the Matthews resolution
adopted by congress in 1873 expressly
asserted the right of the United States
to redeem coin obligations in standard
silver dollars as we'll as in gold coin.
| THE CHICAGO PLANK
|
| form reads: We are opposed to the
| policy and practice of surrendering to
the holders of obligations of the United
States, the option reserved by law to the
government of redeeming such obliga-
tions in either silver coin or gold coin.
| 1t is constantly assumed by some that
the United States notes, commonly
called greenbacks, and treasury notes,
| issued under the act of 1890, are respon-
sible for the recent drain upon the gold
reserve but tt,is assumption is entirely
without foundation. Secretary Car
| Isle appeared before the house commit
| tee on appropriations on January p,
| 1895, and 1 quote from the printed re-
port of his testimony before the COM
mittee:
Mr.. Sibley-I would like to ask you
| (perhaps not entirely connected with the
| matter under discussion) what objection
| there could be in having the option in
| redeemng in either gold or silver with
| the treasury, instead of with the note
holder.
Secretary Carlisle-If that policy had
| been adopted at the beginning of 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 gov
ernment at the beginning of resumpt
ion the option of redeeming in gold or
silver all it's paper presented, 1 believe
| it would have worked beneficially and
there would have been no trouble grow
| ing out of it, but the secretaries of the
treasury from the beginning of resump
\ 1,ax Of 6nn 1i,1c
| in gold or silver at the option 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 man
who wanted silver, especially if he made
| the attempt at such a critical period as
| we have had in the last two years, my
| judgment is it would have been very dis
astrous.
/ do not agree with the secretary that
| it was wise to follow bad precedent,
| but from his answer it will be seen that
| the fault does not lie with the green
backs and the treasury but rather with
| the executive officers who have seen
| fit to surrender a right which should
have been exercised for the protection Of
| the interests of the people.
INCREASE OF BONDS.
| This executive action has already
| been made the excuse of more than
| $3.50 600 600 in bonds 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 government to re-
| deem it's 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 151a to ! and retains in circua-
| ton more silver per capita than we do in
| the United States. 1t may be further
| announced that our opponents have sug
| gested no feasible plan for avoiding
| the danger which they fear. The re-
| tirement of the greenbacks and treas
| ury notes would not protect the treas
ury because the same policy which now
leads the seer starry of the treasury to
redeem all GOV ernment paper in gold
| when gold is demanded will require the
| redemption of all silver dollars and sill
Yer certificates in gold if the greenbacks
| Ynd treasury notes We're withdrawn
| from circulation. More than this, if the