The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-08-22
certificate or any other Kind of paper money

WHY THE RATIO MUST BE IL TO l.
There are some vino, while admitting the
benefits of bimetaism, object TO the coinage
at the present ratio. If any are deceived by
this objection, they ought 10 remember that
there are no bimetallists who are earnestly en-
deavoring TO secure it at any other ratio than
Is 10 |. We are opposed to any change IN
the ratio for two reasons:
First, because a change would produce
injustice; and, second, because u change in the
ratio is not necessary. A change would pro-
duce Injustice because if effected in the man
ner usually suggested, it would result in an
enormous contraction in the volume Of stand
ard money.
If, for instance, it was decided by interna-
tional agreement TO raise the ratios throughout
the world 81 to ], the change might be effected
in any one of three ways-the silver dollar
could be doubled in size, so that the new silver
dollar would weigh 81 times as much as the
present gold dollar, or the present gold dollar
could be reduced one-half in weight, so that
the present silver dollar would weigh go times
as much as the new gold dollar, or the change
could be made by increasing the size of the
silver dollar and decreasing the size of the
gold dollar until the new silver dollar would
weigh 30 times as much as the new gold dollar.
LOSSES BY CHANGE OF RATIO.
Those who have advised change in the |
ratio have usually suggested that the silver |
il would necessitate the recoinage of 4,00O,- |
600 600 of silver into 1000, 000, 900 of dollars.
There would be an Immediate loss of 81, O0O,-
DOC, 900 either to individuals or to the Govern
meat, but this would be the least of the injury. |
shrinkage of one-half in the silver money of |
the world would mean shrinkage of one |
fourth in the total volume of metallic money. |
This contraction, by increasing the value of
the dollar, would virtually increase the debts |
of the world billions Of dollars and decrease
still more the valne of property of the world |
as measured by dollars Besides this imme-
diate result such change in the ratio would |
permanently decrease the annual addition TO |
the worlds supply of money because the an
nual silver product, when coined into dollars |
twice as large, would make only half as many |
dollars
The people of the United States would be
injured by change IN the ratio. not because
they produce silver, but because they own |
property and owe debts, and they cannot af- |
ford to thus decrease the value of their prop
erty or increase the burden Of their debts.
Mr.. CARLIsLE's ASSERTION IN 1878.
In 1878 Mr.. Carlisle said mankind will
be fortunate indeed if the annual production
of gold and silver coin shall keep pace with
the annual increase of population and in
dustry. "
repeat this assertion All Of the gold and
silver annually available for coinage, when
converted into coin at the present ratio, will
not, in my judgment, more than supply our
monetary needs.
THE SHERMAN Act.
In supporting the act of 1890, known as the
Sherman act, Senator Sherman, on June of
that year, said
''Under the law of February, 1875 the pur-
chase of $4,000, 900 worth of silver bullion a
month has by coinage produced annually an
average of nearly s., 200, 900 per.month for a
period of u years; but this amount. in view
of the retirement of the bank notes. will not
increase our currency IN proportion to our in
creasing population. If our present currency
is estimated at 81 400, 600, 600 aud our popua-
ton is increasing at the ratio of 3 per cent.
per annum, it would require $40, 200, 900 in
creased circulation each year to keep pace
with the increase of population, but as the in
crease of population is accompanied by still
greater ratio of increase of wealth and business
it was thought that an immediate increase of
circulation might be obtained by larger pur-
chases of silver bullion to an amount sufficient
to make good the retirement OF bank notes
and keep pace with the growth of population.
Assuming that $54 ,000, 900 year of additional
currency is needed on this basis, that amount
is provided for in this bill by the issue of
Treasury notes in exchange for bullion at the
NEEDS STILL MORE MONEY NOW.
If the United States then needed more than
$40, 000, 600 annually TO keep pace with popu-
lation and business, it now, with larger pop
ulation, needs a still greater annual addition,
and the United States is only one nation
among nations. Our opponents make no
adequate provision for the increased monetary
needs of the world.
In the second place, change in the ratio
l. l.. L..
creased the demand for silver and lowered its
price when measured by gold, while this same
hostile legislation, by increasing the demand
for gold, has raised the value Of gold when
measured by other forms of property.
EFFECT on GOLD CONTRACTS.
We are told that the restoration of bimetal-
ism would be hardship upon those who
have entered into contracts payable in gold
coin, but this is mistake. 1t will be easier
to obtain the gold with which to meet gold
contract, when most of the people can use
silver, than it is now when every one is trying
TO secure gold.
The Chicago platform expressly declares
in favor of such legislation as may be neces-
sary to prevent for the future the demoneti-
cation of any kind of legal-tender money by
private contract Such contracts are OBJ
jected to ON the ground that they are against
public policy. No one questions the right of
Legislatures to fix the rate of interest which
can be collected by law; there is far more
reason for preventing private individuals
from setting aside legal-tender law. The
money, which is by law made legal tender,
must, in the course of ordinary business, be
accepted by SO out Of every 100 persons.
Why should the one hundredth man be per-
mitted to exempt himself from the general
rule? Special contracts have a tendency to
increase the demand for particular kind Of
money and thus force it TO premium. Have
not the people a right to say that a compare
lively few individuals shall not be permitted
to derange the financial system of the nation
in order to collect premium in case they
succeed in forcing one kind Of money to
premium?
BIMETALLIsM COULD BE IyAUGURATED IN
FEW MONTHS.
There is another argument 10 which | ask
your attention. Some of the more jealous
opponents of free coinage point TO the fact
that Is months must elapse between the cleo
ton and the first regular session of Congress,
and assert that during that time, in case peo-
pie declare themselves in favor of free coin
age, all leans will be withdrawn and all mort
cages foreclosed. If these are merely proph
ccies INDUCED in by those who have forgotten
the provisions of the constitution, it will be
sufficient to remind them that the President
is empowered to convene Congress in extra
ordinary session whenever the public good
requires such action. If, in November, the
people. by their ballots, declare themselves
in favor of the immediate restoration of BIZ
metallism, the system can be inaugurated
within few months.
MONEY NOT ALL-PowERFUL
If, however, the assertion that loans will be
withdrawn and mortgages foreclosed IS made
to prevent such political action as the people |
may believe to be necessary for the preserva-
ton or their rights, then new and vital issue
is raised. Whenever it is necessary for the
people as a whole to obtain consent from the
owners of money aud the changers of money
before they can legislate upon financial ques-
tons, we shall have passed from democracy
to a plutocracy. But that time has not
yet arrived. Threats and intimidation will |
be of no avail. The people who, in l776, re-
jected the doctrine that Kings rule by right |
divine, will not, in this generation, subscribe |
TO doctrine that money is omnipotent.
INTERNATIONAL BIMETALLIsM.