Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-08-14

to gold. When we ask that this coinage
be at the ratio of 16 to We simply ash
! that our gold coins and standard silver
| dollars, which be it remembered contains
the same amount of pure silver as the
first silver dollar coined at our mints, re-
tain their present weight and fineness.
GOOD ILLUSTRATION.
The theoretical advantage of the BIZ
metallic system is best stated by a Euro
pean writer on political economy, who
suggests the following illustrations:
river fed from two sources is more
uniform in volume than river fed from
ope 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 and fall with
that feeder. So in the case of bimetal-
lism, the metallic money receives contri-
buttons from both the gold mines and
silver mines, and therefore varies less,
and the dollar resting upon the two met
ais is less changeable in its purchasing
power than the dollar which rests on one
metal only. If there are two kinds of
money the option must rest either with
the debtor or with the creditor. Assum-
ing that their rights are equal, we must
look at the interests of society in general
in order to determine to which side the
option should be given. Under the BIZ
metallic 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 it converted into
full legal tender money. If the creditor
has the right to che ose the metal in which
payment shall be made it is reasonable to
suppose that he will require the debtor to
pay in the dearer money, if there is any
perceptible difference between the bullion
values of the meals. This new demand
created for the dearer metal will make
that metal dearer still, while the decreased
demand for the cheaper metal will make
that metal cheaper still. On the other
hand if the debtor exercises the option it
is reasonable to suppose that he will pay
in the cheaper metal, if ono metal is per-
ceptibly cheaper than the other; but the
demand thus created for the cheaper metal
will raise its price, while the lessened de-
mand 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 ap-
proximately at the ratio fixed by law;
provided the demand created is sufficient
to absorb all of both metals presented at
the mints. Society is therefore interest
ed in having the option exercised by the
debtor. Indeed, there can be no such
thing as real bimetallism unless the op-
tion is exercised by the debtor. The ex-
ercise of the option by the debtor COM
pels the creditor Glasses, whether demo-
cratic or foreign, to exert themselves to
maintain the parity between gold and sll-
yer at the legal ratio, whereas they might
find profit in driving one of the metals
to premium if they could then demand
the dear metal. The right of the debtor
to choose the ooin in which payment shall
be made extends to obligations due from
the government as we'll 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 interests of one
person who holds the obligation superior
to the rights of the many who must be
taxed to pay it. When, prior to 1873, sil.
yer was at premium, it was never con-
tended that national honor required the
payment of government obligations in
silver, and the Mathews resolution adopt
ed by congress in 1878 expressly asserted
the right of the United States to redeem
coin obligations in standard silver dollars
as we'll as in gold coin. Upon this subject
the Chicago platform reads:
"We are opposed to the policy and prac-
tice of surrenderlng to the holders of the
Obligations of the United States the op-
tion reserved by law to the government
of redeeming such obligations in either
silver coin or gold coin."
THE DRAIN OF GOLD.
| It is constantly assumed by some that
the United States notes, commonly call
ed greenbacks, and the treasury notes
issued under the act of 1890 are respon-
sible for the recent drain upon the gold
reserve, but this assumption is entirely
without foundation. Secretary Carlisle
appeared before the house committee on
appropriations on January 2l, 1895, and
quote from the printed report of his tes-
timony before the COMMITTEES:
"Mr. Sibley-I would like to ask you
(perhaps not entirely connected with the
matter under discussion) what objection
there could be in having the option of
redeeming either in silver or gold with
the treasury instead of with the note
holder?"
"Secretary Carlisle-Tf that policy had
been adopted at the beginning of the re-
sumption-and am not saying this for
the purpose Of criticising the action of
my predecessors, or anybody else, but if
the policy of reserving 10 the govern
ment at the beginning of resumption the
option of redeemiug in gold or silver all
it's paper presented, / believe it would
have worked benedcially and there
would have been no trouble growing out
of it, but the secretaries of the treasury
from the beginning of 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
attem pied to change the polisy and force
silver upon man who wanted gold, or
gold upon man who wanted silver, espe-
cially If he made the attempt at such
critical period as we have had in the last
two years, my judgment is it would have
been very disastrous"
| do not agree with the secretary that
il is wise to follow bad precedent, but
from his answer it will be seen that the
fault does not lie with the greenbacks
and the treasury, but rather with the
executive officers, who have seen fit to
surrender right which should have been
exercised for the protection of the inter-
ests of the people. This executive action
has already been made the excuse of
more than $26o,OOO,OOO in bonds, and it
is impossible to estimate the amount of
bonds which may hereafter be issued if
this policy is continued. We are told
that any attempt upon the part of the
government to redeem its obligations in
silver would put premium upon gold,
but why should III The Bank Of France
exercises the right to redeem all bank
paper in either gold or silver, and yet