Daily capital journal. (Salem, Or.) 1896-1899, 1896-08-14

| In otner words, when the creditor has
the option, the metals are drawn
apart: whereas, when the debtor mas
, the option, the metals are held To-
vether, approximately at the raIio
fixed by law, provided, the demand
created is sufficient to absorb all OF
both metals presented at the mlnt'
"Society is therefore interested IN
having the option exercised by the
debtor. Indeed, there can be no such
thing as real bmetallism 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 parity be-
tween gold and silver at the legal
ratio, whereas they might lind pront
in driving one Of the metals to
premIum II 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
well as contracts between individuals.
A government obligation is simply II
debt due from all the people to one of
the people, and it is impossible to JUS
tify policy which makes the inter
ests of one person, who holds the obli-
vation. superior TO the rights Of the
many. who must be taxed TO pay IL.
When, prior to~fST5, 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 asserted the right
of the United States to redeem coin
obligations in standard silver dollars,
as well as in gold coin.
"Upon this subject the Chicago
platform reads:
"'we are opposed to the policy and
practice of surrendering to the hold
: ers of the obligations OF the United
r States the option reserved by law TO
= the government of redeeming such
} obligations in either silver or gold
, coin
at 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 foun-
. dation. Secretary Carlisle appeared
3 before the house committee on appro-
! prlations on January 81, 1895, and |
quote from the printed report of his
testimony:
"'Mr. Sibley-I would like to ask
r you, perhaps entirely connected with
: the matter under discussion, what
4 objection there could be OF having the
q optlonSof redeeming either in silver
g or gold with the treasury instead OF
7 the noteholder.'
II "Carlsle-If that policy had been
II adopted at the beginning of the re
c sumption,a and / am not saying this FOL
e the purpose OF criticislng the action
n of any OF my predecessors or anybody
G else, but II the policy OF reserving t(
y the government at the beginning o.
T resumption the option Of redeeminl
! In gold or silver all its paper pre-
K sented. l believe 1t would have
e worke d beneflclally, and there would
a have been no trouble. But the secre
y taries OF the treasury from the begin
IS ming of consumption have pursued
G. policy Of redeeming in gold or sllye
Is at the option OF the holder of TIN
re paper, and il any secretary had after
I'd ward attempted TO change that policy
e. and force silver upon man VIII
1t wanted gold, or gold upon man wh'
ID wanted silver, especially il he mad
IT the attempt at such critical perio'
Al as we have had In the last two years
is my Judgment Is IL would have beer
ll DISASTROUS
X THE BOND ISSUES,
81 do not agree with the secretar.
is that IL was wise to follow bad prece
er dent, but from his answer IL will b
IN seen the fault does not lie with tn
is greenbacks and the treasury, but wit
Is, the executive officers who have seeI
st tit TO surrender right which shoult
he have been exercised for the protection
lie OF the interests OF the people. Thi
he executive action has already bee
ST. made the excuse of more than $3.50
re- 600, 900 in bond issues, and II is impo'
he sible TO estimate the amount of bond
ly. which may hereafter be issued II thi
he policy is continued. We are told tina
or any attempt upon the part of the GOV
'ir ernment TO redeem its obligations /
he silver would put premium on golt
Ter but why should itY The bank {
on France exercises the right to redeeI
lie all bank paper in either gold or silvel
ed and yet France maintains the parit
nd between gold and silver at the ratio {
OF Ilb1 TO | and retains In circulatiO