The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-13
BRYAN AND SILVER
Continued from seventh Page.

Continued from Seventh Page.
On political economy, who suggests the fol-
lowing illustration: "A river fed from two
sources is more uniform in volume than
river fed from one source-the reason being
that when one of the feeders is swollen the
other may be low; whereas, river which has
but one feeder must rise or fall with that
feeder. So in the case of bimetalliSm; the
volume of bimetallic money receives contri-
buttons from both the gold mines and the
silver mines and therefore varies less; and
the dollar, resting upon two metals, is less
changeable in its purchasing power than the
dollar which rests on one metal only.
If there are two kinds of money the OF,
ton must rest either with the debtor or
with the creditor. Assuming that their rights
equal must look at the interests Of
society in general in order to determine to
which side the option should be given I'm
der the bimetallic system. gold and silver are
linked together by law at fixed ratio. and
any person or 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 is any per-
ceptble difference between the bullion values
of the metals. This new demand created for
the dearer metal will make that metal dear
err STILL while the decreased demand for the
cheaper metal will make that metal cheaper
still.
ii,
the option, if it is reasonable to suppose
that he will pay in the cheaper metal, if
one metal is perceptibly cheaper than the
other: but the demand thus created for the
cheaper metal will 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 drawn
apart; whereas, when the debtor has the
option the metals are held together, approx
imately at the ratio fixed by law; provided
the demand created is sufficient to absorb
NIL Of hnth lie fnd nf f6n 11frf
Society is, therefore, interested in having the
option exercised by the debtor. Indeed,
there can be no such thing real bimetal-
ism unless the option is 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 of the metals to a
premium if they could then demand the
dearer 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 as to contracts between individuals.
government obligation is simply a debt
due from all the people to one of the people,
and it is impossible to justify 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 it.
When, prior to 1873, silver was at a pre-
MUM it was never commended that national
honor required the payment of government
obligations in silver, and the Matthew'S reso-
luton, 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: I'VE are opposed to the policy and
practice of surrendering to the, holders of
the obligations of the United States the op-
ton reserved by law to the government.
of redeeming such obligations in either sill
coin or gold cOin.
1t is constantly assumed by some that the
United States notes, commonly called green
backs, and the treasury notes issued under
the act of 1890. are responsible for the recent
drain upon the gold reserve, but this as
sumption is entirely without foundation.
Secretary Carlisle appeared before the house
committee on appropriations on January q,
1895, and I quote from the printed report
of his testimony before the committees:
Mr.. SibeyI would like to ask you-per-
haps not entirely connected with the matter
under consideration-what objection there
could be to having the option of redeeming
either in silver or gold lie with the treasury
instead of the money holder? -- ~
DEBTORS OPTION.
Secretary Carlisle-If that policy had been
adopted at the beginning of resumption-and
am not saying this for the purpose of crit
icising the action of any of my predecessors
or anybody else-if the policy of reserving
to the government at the beginning of resump-
ton, the option of redeeming in gold or sill
yer all its paper presented, believe it
would have worked benefcially and there
would have been no trouble growing out of
the beginning of the resumption have pursued
policy of redeeming in gold or silver at
the option of the holder of the paper, and
If any secretary had afterwards attempted
to change that policy and force silver upon
man who wanted gold, or gold upon man
who wanted silver, and especially if he had
made that attempt at such a critical period
we have had in the last two years, my
judgment is it would have been very dis
astrous.
l do not agree with the secretary that it was
a
answer it will be seen that the fault does
not lie with the greenbacks and treasury
notes, but rather with the executive officers
who have seen fit to surrender right which
should have been exercised for the protec-
ton of the interests of the people. This ex-
ecutive action has already been made the ex-
cuse for the issue of more than $3.50 000, 900
in bonds and it is impossible to estimate the
amount of bonds which may hereafter be is
sued If this policy is continued. We are told
that any attempt upon the part of the gov
eminent to redeem its obligations in silver
would put premium upon gold. Why should
it? The Bank of France exercises the right to
redeem all bank paper in either gold or silver
and yet France maintains the parity between
gold and silver at the ratio of 1871 to ! and re-
tains in circulation more silver per capita than
we do in the United States
1t may be further answered that cur OPP
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 leads the
secretary of the treasury to redeem all gov
eminent paper in gold, when gold is demand
ed will require the redemption of all silver
dollars and silver certificates in gold if the
greenbacks and treasury notes are withdrawn
from circulation. More than this if the gov
eminent should retire it's 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 government ought to exercise it
now. The government must either exercise
the right to redeem its obligations in silver
when silver is more convenient or 1t must
retire all the silver and silver certificates
from circulation and leave nothing but gold
legal tender money. Are our opponents
willing to outline financial system which
will carry out their policy to it's legitimate
conclusion or will they continue to cloak their
designs IN ambiguous phrases?
There is an actual necessity for bimetallisn
as we'll as theoretical defense 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 bimetallism
In the United States will take away from gold
Just so much of its purchasing power as was
added to 1t by the demonstration of silver
by the United States. The silver dollar Is
now held up to the gold dollar by legal ten
der laws and not by redemption in gold be-