The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-08-13

81 : ssnlsed together By Las At hxad rasio.
- arg perzons owning AIRY quantity %
Sstr metal can have fne sans converted
h -fs fan legal terde- money. II the cred
q - has the right 70 ehcoze the metal sn
\ ~>srh Days1ens shan be azz6e. = ~ fsa-
Lsnshte 70 sur71se that he VII require
~ deSfor 20 pay 81 the setter money. II
Lt<re IL any percs511b.e 3tHsvencs between
- billion valves Of the metals This new
E.~xrd created fof t1e better metal vii
L $40 that rseszi 1earer gt5sI. while the de-
49, demand for the cheaper meta
{ - make that metal cheaper stlIi. Ga fszs
--Eer hand, Il the debtor exercises TIC
s..sfr a "a reaaoa4B bic &c suppose fhat he
- .,zv IN the cheaper metal. II oae mel
!. q perceptiDsy cheaper than Tho other
q. the demand tiifiA created Tor ths
.e<per metal vi raise SIS prScs. sfsle
s - lsss0ned demand for the dearsr metal
E - fower gsz price. IL other rcr1s, whsn
a. creditor has tie option. tbs raesals
- drawn apart, whereas wien the debt
- hzs the ortl5n the metals are held TO-
4~..hsr apgroxsrnatsiy az the rafis fixed By
- nroyIees the demand created Is SAT
erssp. 70 absorb al or both metals Pre-
"A .srsed 81 the fnlnt. eoeiesy IL therefore
3,stsyes.ed IL having the option exercised
81 = sbe debtor. Indeed. there can be 70
49, thing ax real bi-me Italian unlezs lie
8.sfsor Is exercised By the debtor. TIE
s1eresse OF the option By the debtor coTn-
as tie creditor classes, whether domestic
~ ssrsssn. 70 exert themselves - rsai1-
ar the rarity between gold ard silver AZ
80 legal ratio. whereas they might nnd
profit In driving one OF the metals 70
rrer1sun II they could then demand the
<earer metal The opfinn % tbs debtor
Id choose the coin IN which payments
44haH be made extends 20 obligations due
IL the government az well as 10 contracts
HSsfHee1 Individuals
"a government Obligation Ia ssrnp;y 4
3kshs Que from all the people TO ore os the
4pxopse. and II l. imDoas9ble TO Justify a
8rorcy which makes the interests Of ona
Ioerson who holds The obligation superior
10 the rights OF the many who must be
Issxe1 70 pay II. When prior 70 1878 silver
I~as al a premium. IL vas never coBfsn1ef
71that the national honor required the pay
Insenf OF government obligations ln silver.
land the Matthews resolution adopted by
Ieongress III 1878 asserted the right OF tbs
S1raited States to redeem coin obligations
Isn standard silver dollars as well IN gold
}so.n. Upon this subject the Chlcago psat-
form readss We are opposed to the policy
Hard practice Of surrerderIng 10 the hold
~ OF the obligations OF the United States
7tss option reserved by law To the govern
|nent OF Teaseminz such obligations In
keiher gold OF silver coin
II
.Ishs United States notes commonly called
1fFtenhacks and the treasury notes issued
IUnder the act Of 1850 are responsible for
n the recent drain upon the gold reserve.
but this assumption Is entirely without
Foundation. Secretary Carlisle appeared
before the house committee on appropri-
ATOMS on January /. isss and quote
from the printed REPORT OF his testimony:
" Mr.. Hsbey--I would Ike to ask you.
perhaps not entirely connected with the
matter under discussion. what Digestion
y{hsre could be In having the option OF re-
4 csem.ng either In silver or gold with the
treasury instead OF the note holder
/ - Mr.. CariisIe-If that policy had been
II adopted at the beginning of resumption
j and am not saying this for the purpoas
4 Of criticlsfug TIE action OF any OF my pre-
i decessofs or any body else. but II the pol
icy OF reserving TO the government at the
Il beginning OF resumption tho option of re-
Ide.mlng In gold or silver all lts paper pre-
sented. 1 believe IL would have worked
1bsnefcially and there would have been no
trouble. but the secretaries OF the treas
Jury from the beginning of resumption
have pursued "A policy of redeeming in
igold or silver at the option OF the holder
Ief the paper. and IL any secretary had af-
1lsrward attempted To change that policy
land force silver upon man who wanted
1gold. or gold on a man who wanted sii-
Istt, especially IL he made the attempt at
|such a critical period as we have had in
The last two years my judgment is that
IN would have been disastrous
Redemption I'm silver.
4 = DO not agree with the secretary that
III Is wise 10 follow a bad precedent. but
from his answer Il VIII be seen that the
fault does not lie with the greenhacks
ara tie treasury. but with the executive
officers who have seen fit TO surrender
fright which should have been exercised
for the protection OF the Interests Of the
4geopie. This executive action has already
j been made tho excuse for more than S25ns-
Jb1aeo0 IN bonds and II r. Impossible 10
/ estimate the amount OF bonds which may
Hereafter be issued II this policy Is con-
tlnued. We are told that any attempt
upon the part OF the government 10 re-
b deem its obligations In silver would pat
a premium on gold. but Why should IT.
The Rank OF France exercises the right 20
/ redeem all bank paper I'm either gold or SUI
yer. and yet France maintains the parity
1 btween gold and silver at the ratio or
/ isk TO l. and retains tn circulation more
silver per capita than we DO in the United
3s,ates n may be further answered that
ear opponents have suggested no
feasible plan for avoiding the danger
which they fear. The retirement OF ths
greenhaeks and treasury notes would not
/ protect the treasury. becauae the same
/ pollcy which now leads the secretary OF
/ TIE treasury to redeem all government
/ paper when gold Is demanded will require
| the redemption Of all silver dollars and
silver certificates in geld II the green
backs and treasury notes are Withdrawn
/ flom circulation. More than this, IL the
/ government should retire It's paper and
throw upon fae banks the necessity ~
furnishing cein redemption. the banks
i would exercise the right 20 furnish either
lgeld OF silver Ia other words. they would
1 exercise the option just as The govern
'acnt ought 10 do now. The government
/ must either exercise the right redeem
Us obligations In silver when silver Is
more convenient. or e must retire al
1 he silver and silver certificates from cir
| euiasloa and leave only gold as legal ten
der money
| Are our opponents willing 20 outline a
/ financial system which viii carry ent
L TIER preccntA 20 a legitimate conclusion.
a- viii they continue 20 cloak their te-
Ifsns IN ambiguous phrases Now We
contend that a free coinage hy the United
Yates alone would raise che bullion value
! OF silver 90 its coinage value. and thus
make silver bullion worth N.s9 per ounce
| = cold throughout the woFla. This rrono-
Ffsicn Is IN Keeping with natural laws.
rot IN defiance o. TEEN. The best-known
isw eF commerce - the law 81 sgrpiy
eas demand. We recognize this Law and
e~Aa cur argument upon Il. We apply
fhiS law to money when Ne say a rsdUc-
isoa n the volume Of money viii raise
ne purchasing power or tho aollar; we
aiso Apply the law 81 supply ana demand
2 silver when we say that a neN aemand
seT silver, created Nv law. VIII raise
ne price ~ silver bullion. Gold and 81.
YER are Different from other commodities
= taas shev are limited n quantity. cara.
sasal manufactures. etc. can be pro-
saeed almost without limit provided they
80 - soit AZ A price saiTic.enf - stlfa-
f-lta n...-l.-.--.-. - ca 49,.