New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-13

I'VE opposed to the policy and practice or sur
rendering to the holders OF the obligations OF .he
United States the option reserved by law 10 ,he
Government Of redeemlng such obligations IN either
silver coin or gold COIN
THE REDEMPTION OF GREENBACkS.
1t is constantly assumed by some that the United
States notes commonly called greenbacks. and the
Treasury notes. issued under the act OF 1870 are
responsible for the recent drain upon me Soin re-
serve, but this assumption Is entirely without
foundation. Secretary Carlisle appeared before the
House Committee on Appropriations on january q,
1928, and | quote from the printed report oil MS
testimony before the committees -,.... -.
Mr.. Sibey-I would like 10 ask you perhaps not
entirely connected with the matter under discus
SION what objection there could be to having the
option OF redeeming either in silver or gold lie
with the Treasury Instead Of the note holder?
adopted at the beginning of resjimpton-and am
not saying this for the purpose of crticising the
but If the policy Of reserving to the Government.
at the beginning of resumption. the option Of re
believe it would have worked benedcially and
there would have been no trouble growing out OF
beginning Of resumption have pursued a policy of
reforming in gold or silver. al the option of ne
terward attempted to change that policy and force
uP bo man wh9 9e n go III G he " Ro
made that attempt at such critical period as we
would have been very disastrous.
THAT BANK OF FRANCE BUGABOO.
wise to follow a bad precedent. but from his an
swer It Will lie that the fault does not lie with
the greenbacks and Treasury notes. but ~ather
with the Executive officers who have fit TO
surrender right which should have been eycr-
csed for the protection OF the interests Of tie
people. This executive action has already been
made the excuse for the issue OF more than 800
the amount Of bonds which may hereafter he is
sued II this policy is continued. We are told that
any attempt upon the part of the Government at
this time to redeem Its obGat lions in silver would
put a premium upon gold but why should 1t? Tho
BANK OF Franco exercises the right To redeem all
bank paper in either gold or silver and yet Fralre
the ratio OF 1919 to I. and retains IN circulation
more silver per capita than We do in the United
II may be further answered that opponents
have suggested no feasible PLAZA for avoiding the
greenbacks and Treasury notes would not protect
the Treasury, because the same policy which now
Government paper I'm gold. when gold Is demand
ed, will require the redemption Of all silver dollars
and Treasury notes are withdrawn from circula-
ton Nor than his If the GcIerHment shonld re-
sity Of furnishing coin redemption, the banks
MHuu e4orcise rhe I5' TO iu'iSn eaIrr EoIu or
option, Just as the Government ought to exercise
right to redeem It's obligations in silver when silver
is more convenient. or i must retire all the silver
nothing but gold as legal-tender money. Are our
opponents willing to outline a financial system
conclusion. will they continue to cloak their de-
signs In ambiguous phrases?
ACTUAL NECESSITY FOR BIMETALLISM.
There is actual necessity for bmetallism as
well theoretical defence Of it. During the last
twenty-three years legislation has been creating
an additional demand for gold and this law-created
demand has resulted in increasing the purchasing
power Of each ounce of gold The restoration Of
bimetasm I'm the United States Will take away
from gold just much Of It's purchasing power as
was added to II by the characterization of silver by
the United States; The silver dollar is now held
bv redemption in gold because the standard silver
dollars are not now redeemabe in gold either in
We contend that free and unlimited coinage by
the United States alone Will raise the bullion value
of silver its coinage value. and thus make silver
bullion worth 81 % 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,
ducton in the volume OF money Will raise the pur-
chasing power OF the dollar we also apply the law
new demand for silver created by law Will raise the
price OF silver Goa ana syer are Gerent
etr can be produced almost without limit. provided
they can be sold at price sufficient to stimulate
production but gold and silver are called precious
metals have been the objects Of anxious search as
Harvcy's calculation all the gold coin OF me world
can be melted into 22-foot cube and all the silver
coin In the world into a 66-foot cube.
LEGISLATION AND RATIO.
Because gold and silver limited. both In the
quantity In hand and in annual production. 1t
follows that legislation can fix the ratio between
them ANY purchaser who stands ready take
the entire supply OF any given article at certain
price prevent that article from falling below
that price SO the Government can fix price for
gold and silver by creating a demand greater than
The supply Interna tional bimetasts believe that
several nations. by entering into an agreement to
coin at fixed ratio all the gold and silver presented
ran maintain the bullion value of the metals at the
mint ratio. When mint price is thus established.
1t regulates the bullion price. because any person
desiring coin may have the bullion converted into
can secure II by melting the coin.
The only question upon which international b.
metallists and Independent bimetasts differ Is: Can
the United States by the free and unlimited coinage
Of silver at the present legal ratio create demand
for silver which. taken in connection with the de-
roa nd already in existence. will be sufficient 10
utilize all the silver that will be presented at the
minis? They agree in their defence Of the b.
,natallic nrincIple and they agree in unalterable
nnnositton to the gold standard international BIZ
metalliss cannot complain that free coinage gives
benefit the mine-owner. because internatlona b-
rnetallism gives the owner Of silver all the adj
vantages offered by independent bmetallism at the
same ratio. International bimetasts cannot ac-
cuse the advocates Of free silver OF being bullion
owners who desire to raise the value OF their
bullion; debtors who desire to pay their debts
In cheap p v 6G'SI ih the Peope They must rest
heir opposition upon one ground only. namely: !
That the supply or sbSr M 3nd iGr coinage
CAPACITY FOR ABSORBING SILVER.
In discussing this question we must consider the
capacity Of people to use silver and the guam
,itv of silver which come to our mints. 1t
o,,st be remembered that we live In a country |
only nartially developed, and that our people far
.urnass any equal number of people in the world !
In heir mower TO consume and produce. our extern |
.ive railroad development and enormous Internal I
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