The San Francisco call., 1896-08-13


whereas, when the de btor has the option the
metals are held together approximately at the
RATIO liked by law; provided, the demand ere
ated is sufficient to absorb all of both metals
presented at the mint. Society Is, therefore,
interested in having the option exercised by
the debtor.
The exercise of the option by the debtor
compels the creditor classes, whether oomes-
tic or foreign, to exert themselves TO main
tain the parity between gold ana silver at the
legal ratio whereas they might ma pront
in driving one OF the metals to premium II
they could then demand the desrer metal.
The right OF the debtor to choose the coin
In which payment shall be made extends TO
obligations due from the Government, as
well 10 contracts between individuals. A
Government obligation is simply debt due
from all the people to one OF the people, and IL
is impossible to justify a policy which makes
the interests of the one person who holds the
obligation superior to the rights OF the many,
who must be taxed to pay ii.
When prior 10 1873, silver was at pre-
MUM, it was never contended that national
honor required the payment OF government
obligations in silver, and the Matthews resolu-
t on, adopted by Congress in 1878, expressly
asserted the right of the United States to re-
deem coin obligations in standard silver dol
lars as well as in gold coin.
Upon this subject the Chicago platform
reads: 1--WE are opposed to the policy and
practice of surrenderlng to the holders of the
obligations of the United States the option re-
served by law to the Government of redeem
ing such obligations in either silver coin or
gold coin"
II Is constantly assumed Dy some tnat the
United States notes commonly called green
backs, and the treasury notes issued under tn g
act OF 1890, are responsible for the rece 1t
drain upon the gold reserve, but this assum p
tion is entirely without foundation. Secretary
Carlisle appeared before the House Committee
on Appropriations on January 81, 1895, and
quote rom the printed report OF his testimony
before the committee:
"Mr Sibley-I would like to ask you (perhaps
not entirely connected with the matter un der
discussion) what objections there could be to
having the option OF redeeming either in sill
yer or gold lie with the treasury instead OF the
notebo4der.
'Secretary Carlisle = If that policy had
been adopted at the beginning of resumption,
and l am not saying this for the purpose OF
criticiZing the action OF any OF my prede-
cessors or anybody else, but if the policy re-
serving to the Government at the beginning
OF resumption the option OF reqeeming in
gold or silver all its pa per presented had been
adopted believe 1t would have worked bene-
fcially and there would have been no trouble
growing out OF II. but the Secretaries OF Treas
ury from the beginning OF resumption have
pursued O policy of redeeming in gold or
silver at the option OF the holder OF the paper,
and ii any Secretary had afterward attempted
TO change that policy and forced silver upon q
man who wantad gold or gold upon a man
who wanted silver, and especially if he had
made that attempt at such Il critical period as
we have had in the last two years, my jud G.
ment is it would have been very disastrous"
l do not agree with the Secretary that 1t was
wise to follow a bad precedent, but from his
lie with the greenbacks and treasury notes,
but rather with the executive officers who
have seen tit TO surrender 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 bonds,
and 1t is impossible to estimate the amount of
bonds which may hereafter be issu ued II this
policy is continued.
We are told that any attempt upon the part
OF the Government al this time 10 redeem its
gold, but why should it? The Bank of France
exercises the right to redeem all bank paDer
in either gold or silver, and yet France main
tains the parity between gold and silver at a
ratio of 1871 10 l, and retains in circulation
more silver per capita than we do in the
United States.
1t may be further answered that our oppo-
nents have suggested no feasible plan for
avertihg the dangers which they fear. The re-
tirement of green backs and treasury notes
would not protect the treasury, because the
same policy which now leads the Secretary OF
the Treasury to redeem eli Government paper
in gold when gold is demanded VIII require
the redemption of all silver dollars and silver
certificates in gold if the greenbacks and treas
ury notes were Withdrawn from circulation.
More than this, II the Government should re-
tire its paper and throw upon the banks the
necessity of furnishing coin redemption the
banks would exercise the right to furnish
either gold or silver. In other words, they
would exercise the option just as the Govern
ment ought to exercise it now. The Govern
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 financial
system which will carry out their policy to its
legitimate conclusion, or viii they continue
10 cloak their designs in ambiguous phrases?
There is an actual necessity for bime tallism,
as well theoretical defense of it. During
the last twenty-three years legislation has
been creating an additional demand for gold,
nd Ia has tod in
increasing the purchasing power of each ounce
OF gold. The restoration OIL bime Ia ilism in the
United States Will take away from gold just SO
much purchasing power as was added 10 II by
the demone tization of silver by the United
States The silver dollar is now held up TO the
gold dollar by the legal-tender laws, ana not
by redemption in gold. because the standard
silver dollars are not now redeemable in gold,
either in law or by administrative policy. We
contend that free and unlimited coinage by
the United States alone viii raise the bullion
value of silver TO its coinage value and thus
make silver bullion worth $1.29 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
reduction in the value OF money will raise the
purchasing power OF the dollar; We also apply
the law OF supply and demand 10 silver when
we say that a new demand for silver created
by la W will raise the price of silver bullion.
Gold and silver are different from other COM
modities in that they are limited in quantity.
Corn, wheat, manufactured products, etc,
can be produced almost without limit, pro-
viaed they can be sold a. price sufficient To
stimulate production, but gold and silver are
called precious metals because they are found,
not produced. These metals have been the OBJ
jects OF anxious search as far back as history
runs, yet, according to Dir. Harvey's calcula-
tion, all the gold coin of the world can be
melted into twenty-two-footc cube and all the
silver coin in the world into a sixty-six- foot
cube. Because gold ana silver are limited.
both In the quantity now in hand and in an
nual production, 1t follows that leg islation can
fix the ratio between them.
Any purchaser who stands ready to take the
entire supply OF any given article, a. a certain
price, can prevent that article from falling be-
low that price. SO the Government can fx a
price fer gold and silver by creating demand
greater than the supply.
International blmetallists believe that sever
al nations by entering into an agreement to
coin at fixed ratio ali the gold and silver pre-
sented Can maintain the bullion value of the
metals at the mint ratio. When a mint price
is thus established it regulates the bullion
price, because any person desiring coin may
have the bullion converted into coin at that
price and any person desiring bullion can
secure 1t by melting the coin. The only ques-
tion upon which international bimetalIist S and
independent bimetallists differ is Can the
United s .ates by the tree and unlimited coin.
age of silver at the present legal ratio create a
demand for silver which, ia ken in connection
with the demand already in existence, will be
sufficient to utilize all the silver that will be
presented at the mints? They agree in their