Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1896-08-20

OF 10 TO 4 Without waiting tDr the aid or
| consent Of any other nation We are Not
asking that a new experiment be tried we
are insisting upon "A return tO "A financial
policy approved by tile experience VT his-
tory and supported by al tile prominent
statesmen Of our nation from the days of
the first president down to 1873. When WE
ask that our mints he opened to the free
and unlimited coinage 0f silver into fun
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 tile
ratio Of rs to I, We simply ask that our gold
coins and the standard silver dollar,
which be it remembered, contains tile
same amount of pure silver as tile first ill
yer dollar coined ut0ur mints, retain their
present weight and fneness.
Theory or BimetaIIism.
The theoretical advantage w the bimetal-
lie system ~ best stated by European
writer on political economy who suggests
the following illustration: "a river fed
from two sources u more uniform in Vol
ume than river fed from one source, the
reason being that when one Of the feeders
IL swollen the other may be low, whereas
a river which has but one feeder must rise
or fall with that feeder. 50 in the case uf
bimetallism. The volume of metallic mon
ey receives contributions from both THE
gold mines ana the silver mines, ana
therefore varies less, and the dollar, rest
ing upon two metals, j. less changeable i'll
its purchasing power than the dollar which
rests on one metal only.
If there are two kinds of money, the op-
ton must rest either with the debtor 0r
with the creditor. Assuming that their
rights are equal, we must look at tile in-
terests Of society in general in order to de-
termine to which side the option should be
given. Under the bimetallic system gold
and silver are linked together by law at
fixed ratio, and any person OF persons
owning any quantity Of either 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 if there il any perceptible
difference between the bullion values VI
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. III, on the other hand, the
debtor exercises the option, it il reasonable
to suppose that he will pay in the cheaper
metal if one metal il Perceptibly cheaper
than the other, but the demand thus Great
ed for the cheaper metal Will raise it,
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
Nall
fixed by law, provided the demand created
is sufficient to absorb all Of both metals
presented at the mint. Society ~ there
fore interested in having the option exer-
cised by the debtor. Indeed there can be
no such thing as real bimetallism unless
the option il 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 between gold
and silver at the legal ratio, whereas
they might find a profit in driving
one Of the metals to a premium if they
could then demand the dearer metal The
right Of the debtor to choose the coin i'll
which payment shall be made extends to
obligations due from the government ~
we'll as to contracts between individuals.
"A government obligation j. simply debt
due from all the people To one Of the peo-
pie, and it is impossible u justify policy
which makes the interests of the one Der
son who holds the obligation superior tn
the rights Of the many who must be taxed
To pay it. When, prior to 1873, silver wa
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 1878, expressly asserted the right W THE
United States to redeem coin obligations
in standard silver dollars a. we'll as in gold
coin.
Upon this subject the Chicago platform
reads, We are opposed To the policy ana
practice Of surrendering to the holders of
the obligations Of the United States the
option reserved by law To the government
Of redeeming such obligations in either sil-
YER coin or gold coin"
CarIisIe's Testimony.
1t III constantly assumed by some that
the United States notes, commonly 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 il entirely without fOun
dation. Secretary Carlisle appeared before
the house committee on appropriations on
Jan. 21, 1895, and I quote from the printed
report Of his testimony before the commit
tee:
Mr.. Sibley-I would like to ask yen
(perhaps not entirely connected with the
matter under discussion) what objection
there could be to having the option Of re-
deeming either in silver OK gold lie with
the treasury instead Of the note HOLDER
Secretary Carlisle-If that policy had
been adopted at the beginning Of resump-
tion-and am not saying this for the pur-
pose Of criticising the action of any
Of my predecessors or anybody else-the
policy Of reserving to the government, at
the beginning Of resumption, the option of
redeeming in gold ur silver all it, paper
presented, i believe 1T would have worked
beneficially, and there would have been no
trouble growing ont Of it, but the secre-
taries Of the treasury from the beginning
Of resumption have pursued q policy Of re-
deeming 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 man
who wanted gold, OF gold upon man who
wanted silver, and especially if he had
made that attempt at such Y critical period
Judgment il it would have been very disls
trous
do not agree with the secretary that it
was wise to follow a 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 execu-
tive officers who have seen fit to surrender
q right which should have been exercised
for 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, 900, 900 In bonds, and it j. inn
possible to estimate the amount of bonds
which may hereafter be issued ii this policy
IL continued. We are told that any attempt
upon the part of the government at this
time to redeem its obligations In silver
would put premium upon gold, but why
should it9 The Bank Of France exercises
the right to redeem all bank paper in
either gold or silver, and vet France main
tains the parity between gold and silver AT
the ratio Of 151z to and retains in cir
culation more silver per capita than we do
in the United States.
1t may be further answered that our op-
ponents have suggested no feasible plan for
avoiding the dangers which they fear The
retirement Of the greenbacks and treasury
notes would not protect the treasury, be-
cause the same policy which now lends the
secretary Of the treasury to redeem All gov
ernment paper in gold, when gold Il de-
manded, will require the redemption of all
silver dollars and silver certificates In gold