Freeland tribune. (Freeland, Pa.) 1888-1921, 1896-08-13

Ullc DbllRuUlOUS OF Unt tuIttu fottloa tic
option reserved by law to the governments
of redcoming such obligations i'll either sill
yer coin or gold coin"
Carlisle's Testimony.
1t is constantly assumed by somo that
the United States notes, commonly called
grecnhacks, 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 before
the house committee on appropriations ON
Jan. 81, 1895, and quote from the printed
report of his testimony before the commit
tee:
Mr. Sibley-I would like to ask you
(perhaps not entirely connected with the
matter under discussion) what objection
there could be to having tho option of re-
deeming either in silver or gold lie with
the treasury instead of tho note holder?
Secretary Carislc-If that policy had
been adopted at the beginning of rcsump-
tion-and l am not saying this for the pur-
pose of criticising the action of any
of my predecessors or anybody else-thc
policy of reserving to the government, ut
the beginning of resumption, the option of
rcdCeming in gold or silver all its paper
presented, believe it would have worked
bcneficially, and there would have been no
trouble growing out Of it, but the secrc-
taries of the treasury from the beginning
of resumption have pursued IL policy of re-
dCeming in gold or silver, at the option of
the holder of the paper, and if any secre-
tary had afterward attempted to change
that policy and force silver upon u man
who wanted gold, or gold upon Il man who
wanted silver, and especially if he had
made that attempt ut such u critical period
us we have had in the last two yClrs my
Judgment is it would have been very disas-
trOus.
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 greenbacks and
treasury notes. but rather with the cxccu-
tive officers who have seen fit to surrender
II right which should have been exercised
fer the protection of the interests of the
people. This executive action has already
been made the excuse for the issue of more
than $3.50, coo, 600 in bonds, and it is inn
possible 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 u 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 main
tains the parity between gold and silA er ut
the ratio of 15}4 to l and retains in cir
Culation more silver per capita than VIC do
in the United States
1t may be further answered that our OPP
poncnts have suggested no feasible Ilan for
avoiding the dangers which they fear. Tie
retirement of the grccnbacks and treasury
notes would not protect the treasury, be-
cause the same policy which now leads Tic
secretary of the treasury to redeem all gov
Crnment paper in gold, when gold is de-
mandcd, win require the redemption of all
silver dollars and silver certificates in gold
if the grcenbacks and treasury notes are
withdrawn from circulation. More than
this, If the government should retire its
paper and throw upon the banks tho ne
ccssity of furnishing coin redemption, the
banks would exercise the right to furnish
either gold or silvcr-in other words, they
would exercise tie option, just as the gov
'ornmcnt ought to exercise it now. The
government must either exercise the right
to redeem its obligations in silver when
silver is more convenient or it must retire
all the silver and silver certificates from
circulation and leave nothing but gold as
| legal tender money Are our opponents
willing to outline Il financial system which
Will carry out their policy to its legitimate
conclusion, or Will they continue to cloak
tEcir designs in ambiguous phrases?
Necessity For Bimetallism.
There Ii an actual necessity for bimctal-
| lism as well rs u theoretical defense Of it.
During the last % years legislation has
lccn creating an additional demand for
gold and this law created demand has re-
suited in increasing tho purchasing power
of each ounce of gold. The restoration Of
bimctallism in the United States will take
away from gold just so much of its pur-
| chasing power as was added to it by tho
dcmonetzatiCn of silver by the United
States, Tho silver dollar is now held up to
the gold dollar by legal tender laws and
not by redemption in gold, because the
standard silver dollars arc not now re-
dccmablc in gold either in law or by ad-
ministrativc POLICY
We contend that free and unlimited coin
age by tho United States alone will raise
| the bullion value of silver to its coinage
| value, and thus make silver bullion worth
| Sl29 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 it. We
| apply this law to money when we say that
II reduction in the volume of money will
raise the purchasing power of the dollar.
We also apply the law of supply and de-
mand to silver when we say that Il new
demand fer silver created by law will raise
the price of silver bullion. Gold and silver
are different from other commodities in
that they are limited in quantity. Corn,
wheat, manufactured products, etc, can be
| produced almost without limit, provided
they can Eo 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 a 22 foot cube
and all the silver coin in the world into
66 foot cube. Because gold and silver are
| limited, both in the quantity now in hand
and i'll annual production, it follows that
/ legislation can 1lX the ratio between Them
| Any purchaser who st'nds ready to take