The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-13

silver as the first silver dollar coined al
our minis retain their present weight ana
| hneness.
The theoretical advantage Of the BIZ
metallic system Is oest stated Dy ~
/ ropean writer on political economy, VINO
/ suggests the following Illustrations A
/ river Ted nom two sources Is more UNI
1 form In volume than river ted from
one source, the reason being tnal Mheh
one Of the feeders f. swollen, the other
| may be low; whereas. a river when has
| but one feeder must rise or fall with tnat
FEEDER 80 in the case or Dimeta4llsrn,
| the volume OF metallic money receives
contributions from both the gold mines
| and the silver mines. and therefore va
rles less; and the dollar, resting upon TWO
metals Is less chaugeable In It's purchas-
ing power than the dollar which rests on
one metal only.
"If there are two kinds Of money the
/ option must lest either with the Debtor
or with the crfGitOr Assuming that their
rights are equal, We must look al the in
/ terests OF society in general in order 10
determine 10 which side the option should
Pc gwen Under the bimetallic system
gold and silver are linked together Dy
ia at fixed ratio. and any person or
persons owning any quantity OF either
metal can have the same converted into
IuA legal tender money II the creditor
mas the right to choose the metal IN
which payment shall be made, IL is rea-
sonable 10 suppose that he viii require
the debtor to pay in ne dearer metal II
mere > any percepuhle dlnerence be-
tween the bullion values or the metals
This new demand created for the dearer
metal VIII make that metal dearer still
while the decreased demad for the cheap
er mental viii make that metal cheaper
stHi. II. on the other hand, the debtor
exercises the option, IL IS reasonable to
suppose that he Will pay in the cheaper
metal, II one may be percepubly cheaper
than the other the demand thus created
Tor the cheaper metal VIII raise its 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 held together approximate
ly at the ratio fixed by law provided this
demand created is sufficient TO absorb all
Of both metals presented ait the mint. So
ciety is, therefore interested in having
the option exercised by the debtor. In
deed, there can be no such thing as real
bimetallism until the option is exercised
by the debtor.
The exercise Of the option by the deb
tor compels the creditor class whether
domestic or foreign, 70 exert themselves
TO maintain the parity between gold and
silver at legal ratio, whereas, they
might find a profit in driving one of the
metals to a premium IL they could then
demand the dearer metal.
The right of the debtor to choose the
coin in which payment shall be made, ex
tends to obligations due from the gov
eminent as well as to contracts between
individuals government obligation is
simply debt due from all the people to
one of the people, and It IS impossible to
justify policy which makes the inter
ests OF the one person who holds the OBJ
LEGATION superior to the rights of the many
who must be taxed to pay 1t.
When, prior to 1873, silver was at
premium, II was never commended 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 well as in
gold coin. Upon this subject the Chicago
platform reads: We are opposed to the
policy and 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 silver coin or gold coin.'
1T Is 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 is entirely without
foundation. Secretary Carlisle appeared
before the Senate committee on appropria-
lions on Jan. q, 1895, and l quote from the
printed report of his testimony before the
committee: Mr.. Sibley; l would like to ask
you (perhaps not entirely connected with
the matter under discussion) what objec-
ton there could be to having the option of
redeeming either in silver or gold lie with
the treasury instead of the note holder?
Secretary Carlisle: If the policy had
beeh adopted at the beginning or reSumD-
tlon-and am not saying this for the pur-
pose of criticising the action of any of my
predecessors, or any one else-but if the
policy of reserving to the government at
the beginning of resumption the option of
redeeming in gold or silver, all its paper
presented, believe it would have worked
beneficialy. and there would have been no
trouble growing out of it, but the secre-
tarles of the treasury from the beginning
of the resumption have pursued a policy
of redeeming in gold or silver, at the op-
ton of the holder of the paper and If any
secretary had afterWard attempted to
change the policy, and force silver upon
man who wanted gold, and gold upon a
man who wanted silver, and especially if
he had made the attempt at such a criti-
cal period as we have had in the last two
years, my judgment is that it would have
been very DISASTROUS
Il do not agree with the secretary that
1t was wise to follow a bad precedent
but from his answer 1t win be seen that
the fault does not lie with the green
backs and treasury notes, 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. This executive
action has already been made the excuse
for the issue of more than $3.50 100000 in
the amount of bonds which may here
after be issued if this policy is contin-
ued. We are told that any attempt upon
the part of the government at this time
to redeem it's obligations in silver would
put a premium upon gold. but why should
1t? The Bank of France exercises the
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