The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1896-08-21

tibly cheaper than the other, but the
demand thus created for the cheaper
metal will raise the price, while the
lessened demand for the dearer
metal will lower its price. In other
words, when the creditor has the OPP
ton, the metals are drawn apart
whereas, when the debtor has the
option the metals are held together
approximately at the ratio fixed by
law, provided the demand created
is sufficient to absorb all of both
metals presented at the mint Soci-
ETY. is, therefore, interested in having
the option exercised by the debtor.
Indeed, there can be no such thing
as real bimetallism unless the option
is exercised by the debtor.
There is an actual necessity for
bimetallism as well as a theoretical
defense of it. During the last %
years legislation has been creating
an additional demand for gold, and
this law-created demand has result
ed in increasing the purchasing pow
er of each ounce of gold. The resto-
ration of bimetallism in the United
States will take away from gold just
so much of it's purchasing power as
was added to it by the demOnetiza-
ton of silver by the United States.
The silver dollar is now held up to
the gold dollar by legal-tender laws,
and not by redemption in gold, be-
cause the standard silver dollars are
not now redeemable in gold either
in law or by administrative policy.
We contend that free and unlimit-
ed coinage by the United States
alone will raise the bullion value of
silver to It's coinage value, and thus
make silver bullion worth 1929 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 COM
merce is the law of supply and de-
mand. We recognize this law and
build our argument upon it. We
apply this law to money when we
say that reduction in the volume of
money will raise the purchasing
power of the dollar. We also apply
the law of supply and demand to
silver when we say that new de-
mand for silver created by law will
raise the price of silver bullion.
The only question upon which in
ternational bimetallists and indie
pendent bimetallists 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 connec-
ton with the demand already in ex-
istence, will be sufficient to utilize
all the silver that will be presented
at the mints?
In discussing this question we
must consider the capacity of our
people to use silver and the quantity
of silver which can come to our
minis.
We cannot even expect all of the
annual product of silver, because
India, China, Japan, Mexico and all
the other silver using countries must
satisfy their annual needs from the
annual product; the arts will require
a large amount and the gold-stand-
ard coun tries will need considera-
BILE quantity for subsidiary coinage.
We will be required to coin only
that which is not needed elsewhere;
but if we stand ready to take and
utilize all of it other nations will be
compelled to buy at the price which
we fix Many fear that the opening
of our minis will be followed by an
enormous increase in the annual pro-
duction of silver.
This is conjecture. Silver has
been used as money for thousands
of years and during all that time the
world has never suffered from an
overproduction.
1t folly to refuse to the people the
money which they now need for fear
they may hereafter have more than
they need. / am firmly convinced
that by opening our minis to free
and unlimited coinage at the present
ratio we can create a demand for
silver which will keep the price of
silver bullion at $l.29 per ounce,
measured by gold.
The charge of reputation comes
with poor grace from those who are
seeking to add to the weight of ex-
listing debts by legislation which
makes money dearer and who con-
ceal their designs against the gen
eral welfare under the euphonious
pretense that they are upholding
public credit and national honor.
If, however, the assertion that
loans will be withdrawn and mort
cages foreclosed is made to prevent
such political action as the people
may believe to be necessary for the
preservation of their rights, then
new and vital issue is raised. When
ever it is necessary for the people as
a whole to obtain consent from the
owners of money and the changers
of money before they can legislate
upon financial questions, we shall
have passed from a democracy to
plutocracy. But that time has
not yet arrived. Threats and intim-
idation will be of no avail. The
people who, in 1776, rejected the
doctrine that kings rule by right di-
vine, will not, in is generation,
subscribe to doctrine that money
is omnipotent.
For more than 20 years we have
invited the assistance of European
nations, but all progress in the di-