The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-08-13

ercised by the debtor The exercise Of
the option by the debtor conlpefs 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 profit
in driving one of the metals to a prem
ium 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 we'll as to
contracts between individuals. A gov
eminent obligation is simply a debt due
from all the people to one of the peo-
pie. and It is impossible to justify a
policy which makes the interests of the
one person who holds the obligation su-
perior to the rights of the many who
must be taxed to pay it. When. prior
to 1873. silver was at a premium,
was never commended that national
honor required the payment of govern
ment obligations in silver. and the Ma
thews resolution. adopted by Congress
in 1873, expressly asserted the right Of
the United States to redeem coin obli-
cations in standard silver dollars as
we'll as in gold coin.
Upon this subject, the Chicago plat
form reads: we are opposed to the
policy and practice of surrendering to
the holders of the obligations of the
United States the option reserved by
law 20 the government of redeeming
such obligations in either silver coin
or gold COIN 1t is constantly assumed
by some that the United States notes,
commonly called greenbacks, and the
treasury notes issued under the act Of
1890 are responsible for the recent drain
upon the gold reserve. but this assump-
ton is entirely without foundation. Sec
rotary Carlisle appeared before the
house committee on appropriations on
January q, 1885, and I quote from the
printed report Of his testimony before
that committee:
' Mr.. Sibley-I would like to ask you
perhaps not entirely connected with
the matter under discussion) what OBJ
jections there could be to having the op-
ton of redeeming either in silver or
gold lie with the treasury instead of
the note holder?'
'f Secretary Carlisle-If that policy
had been adopted at the beginning Of
resumption. and 1 am not saying thi9
for the purpose of crfticizing the action
of any of my predecessors or anybody
else, but if the policy of reserving to
the government at the beginning of re-
sumption, the option of redeening in
gold or SILVER all its paper presented,
1 believe IL would have worked bene-
ficially, and there would have been no
trouble growing out of it; but the Sec
retary Of the treasury from the begin
ming of resumption has pursued a. policy
of redeeming in gold or silver at the
option of he holder of the paper. and
if any secretary had afterwards at
tempted to change that policy and
force silver upon man who wanted
gold. or gold upon a man who wanted
silver, and especially if he had made
that attempt at such a critical time as
we have here in the last two years, my
Judgment is it would have been veg
DISASTROUS
Il do not agree with the secretary
that IL was wise to follow a bad prece-
dent, but from his answer it will be
seen shat the fault does net 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 pro-
lection of the interest of the people.
This executive action has already been
the excuse for the issue of more than
$3.50. O0O. 900 in bonds, and it is impos-
sible to estimate the amount OF bonds
which may hereafter be issued II this
policy is continued. We are told that
any attempt upon the part of the gov
eminent at this time to redeem its OBJ
legations in silver would put a premium
upon gold, but 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
rarity between gold and silver at the
ratio of 1872 to 1. and retains in circula-
ton more silver per capita than we Do
in The United States.
ct may be further answered that our
opponents have suggested no feasible
plan for averting the dangers which
they fear. The retirement of the green
backs and treasury notes would not
protect the treasury, because the same
policy which now leads the secretary
of the treasury to redeem all govern
ment paper in gold, when gold is de-
uanded. will require the redemption of
all silver dollars and silver certificates
i'm gold. if the greenbacks and treas
urv notes were withdrawn from circu-
lation. More than this. if the govern
ment should retire lis paper and throw
upon the banks the necessity of fur
nishing coin redemption, the banks
would exercise the right to furnish
either gold or silver. In other words,
they would
EXERCISE THE OPTION
lust as the government ought to exer-
else it. Now the government must
either exercise the right to redeem 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 oppo-
nents willing to outline a financial sys-
tenn 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 ac-
tual necessity for bimetallism, as well
as theoretical defense of it. During