Omaha daily bee., 1896-11-22
SPURIOUS BTyEThLJTsM.

horse and a horse chestnut. The bi
metallism of Alexander Hamilton was
the double standard. The essential
conditions of the double standard are
that coins of full weight shall circulate
and alternate in use to maintain the
equilibrium between the two money
metals, and thus secure stability OF
value in money. In other words, the
double standard of Alexander Hamilton
was based upon the fundamental prin.
ciple that the metal value of every coin
must be equal to its face value. The
only way Il double standard can be
maintained is to put the same CONNER.
cial value of metal In the coins of each
standard. If 100 cents worth of silver
| bullion be put into the silver dollar
commercial laws Will make It worth q
dollar without reference to legislation.
The ideal double standard is designed
to keep gold and silver in circulation
concurrcntly Not so with the spurious
bimetallism OF Harvey, Bryan and
other teachers OF false political econ
omy. They insist that bimetallism
means the free and unlimited coinage
of gold and silver at ratio fixed by
| government. regardless of the relative
metal value of the coins, and they in
sist. Furthermore, that the borrower
| shall always have the right to pay his
| debts In that coin which Is to him
cheapest and most convenient. Such a
IA, ,t,l lt.s,,N 1xrpc
| dreamed of by the men who sought to
establish the double standard for our
| coinage system. TO coin two metals
of different quality and value into
money at an arbitrary ratio that does
not correspond to their relative mar
ket value simply results in a
single standard, or standard
| in which the two metals alternate
| from time to time, but never circulate
side by side during the same period.
That was the experience of the whole
| world before the United States mint
was established and has been the ex-
pcrience of this country for more than
hundred years. The founders of the
| republic, in common with the great
fnanciers of all nations, We're firmly
convinced that the metallic value OF
an honest coin must be equal to its face
value.
The apostles of the spurious double
standard persist in teaching that the
metal value in coin has no bearing
upon its debt-paying value if the gov
crnment makes such Il coin legal tender.
This doctrine is deceptive as well as
dishonest While it is true that any
thing silver, copper. leather or
paper-bearing stamp of particular
denomination which has been decreed
n legal tender would discharge a debt
under the forms of law, any substance
stamped by government as money which
does not have the same value regardless
of the stamp or is not made redeemable
in full weight coin of equal metallic
market value is cheat perpeuated
under the cover of law. Governments
have no more right to force creditors to
take in payment OF debt worthless
pieces of stamped tin, leather or paper
than they have to conflscate private
property or TO legaiZe highway rob
berry If, however, the doctrine of
spurious bimetallism is right then why
should the government stamp pieces OF
metal worth from 80 to 60 cents as
dollars, when it could just as readily
stamp dimes and call them dollars:
That would be Il more speedy means of
paying debts and multiplying wealth.
The advocates of spurious bimetallism
do not hesitate to admit that the two
metals coined at n ratio that does not
correspond with their metallic value
would force the dearer of the two
metals out and leave the cheaper in
circulation. When, therefore. they insist
that the debtor shall have the privilege
of paying in the metal which he chooses
they know in advance that he will
choose to pay in the coin that has the
least metal value. Does it stand to
reason that such a privilege would be
granted to the debtor by the money
lender without making him pay for it?
Would not the money lender discount
this privilege of paying in the least
valuable money by eXacting higher rate
OF interest or n commission that would
Offset the difference between the money
loaned and the probable value of the
money returned? In the long run the
debtor would get the worst of the
bargain every time, and the spurious
bimetallism, instead of giving relief
through cheaper money and lower in,
terest would make the terms upon
which money could be borrowed more
Durdensome and the price for the use
OF money higher instead of lower.
An honest double standard system
would cause no disturbance in our
values and it would not affect public or
private credit, but the spurious bimetal.
lism with deprecated and fiuctuatiug |
standard would legalize reputation. |
prove constant menace to stability |
of commercial exchanges and conse |
quently destructive to all business on |
terprises. When the popular masses |
who have been imbibing the false and |
delusive theories about money fully |
the difference between the |