Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1896-08-20

ARTHUR S
which, pe II remembered, contains the
same amount of pure silver as the first sill
yer dollar coined atour mints, retain their
present weight and fineness.
Theory of Bimetallism.
The theoretical advantage Of the bimetal-
lie system is best stated by European
writer on political economy who suggests
the following illustration: A river fed
from two sources is more uniform in vol
ume than q 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 metallic mon
ey receives contributions from both the
gold mines and the silver mines, and
therefore varies less, and the dollar, rest
ing 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 op-
ton must rest either with the debtor OF
with the creditor Assuming that their
rights are equal, we must look at the in
terests Of society in general in order to de-
terninc to which side the option should he
given. Under the bimetallic system gold
and silver are linked together by law at u
fixed ratio, and any person or persons
owning any quantity of either metal can
have the same converted into full legal
tender money. II 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 perceptible
difference between the bullion values Of
the metals 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. If, on the other hand, the
debtor exercises the option, 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 Great
ed for the cheaper metal will raise its
price, while the lessened demand for tho
dearer metal will lower it's 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 Approximately at the ratio
fixed by law, provided the demand created
is sufficient to absorb all Of both metals
presented at the mint. Society is there
fore interested in having the option exer-
cised by the debtor. Indeed there can be
no such thing us real bi1netallism 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 profit in driving
one Of the metals to o 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.
A government obligation is simply debt
due from all the people to one of the peo-
pie, and it is impossible to justify policy
which makes the interests Of the one per-
son who holds the obligation superior to
the rights of the many who must be taxed
to pay it. When, prior to 1878, silver was
at a premium 1t was never contended that
national honor required the payment of
government obligations in silver, and the
Matthews resolution, adopted by congress
in 1878, 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, "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 to the government
Of redeeming such obligations in either sill
veR coin or gold COIN"
Carlisle's Testimony.
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 drnin upon the gold reserve, but
this assumption is entirely without foun-
dation. Secretary Carlisle appeared before
the house committee on appropriations on
Jan. 81, 1896, and quote from the printed
report of his testimony before the commit
tee:
Mr. Sibley--I would like to ask you
(perhaps not entirely connected with the
matter under discussion) what objection
there could be to having the option of re-
deeming either in silver or gold lie with
the treasury instead of the note holder?
Secretary Carlisle-If that policy had
been adopted at the beginning Of resump-
tion-and am not saying this for the pur-
pose of criticising the action of any
Of my predecessors or anybody else-the
policy of reserving to the government at
the beginning Of resumption, the option of
redeeming in gold or silver all its paper
Presented, believe it would have worked
benefcially, and there would have been no
trouble growing out of it, but the secre-
taries of the TREASURY from she beginning