Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1896-08-13

Theoretical Statement Thereof by Euro
pean Political Economist.

The theoretical advantage of the hi.
metallic system is best stated by Euro
pean writer on political economy, who
suggests the following illustration: A
river fed f-ora two sources is more uni.
form in volume than n river fed from one
source-the reason being that when one of
the feeders is swollen the other may be
low; whereas, n river which has but one
feeder must rise or fall with that feeder.
80 in the ease of bimetallism-thc volume
OF metallic money receives contributions
from both the gold mines and the silver
mines. and therefore varies less; and the
dollar resting upon two metals is less
han-cable in its purchasing power than
the dollar which rests on one metal only.
Ii there are two kinds of money the op.
ton must rest either with the debtor
or with the creditor Assuming that their
rights are equal we must lock at the in.
terests of society in general in order &c
determine to which side the option should
DC given. Under the bimetallic system
gold and silver are linked together by law
at fixed ratio, and any person or persons
owning any quantity of either metal can
have the same converted into full legal
tender money. If the creditor has the
right to choose the metal in which nav.
nent shall be made il is reasonable to sup
pose that he will require the debtor to
pay in the dearer metal if there is ,np
perceptible difference between the bullion
y,lurs of the ,,,r,,Is Tbis nov, 5a,,,or,,
created for the dearer metal will make
that metal dearcr still. while the de.
creased demand for the cheaper metal will
make that metal cheaper still
If, on the other hand the dehtor ex.r.
cises the optiop. il is reasonable r. CIV,
pose that he will nav i'm the cboanor meta
if one metal is nercen,iblv cbean.r tba :,
the other; but the demand ,bns cre,toJ
for the cheaper metal will raise ito nrice
while the lessened demand for the daarn,
metal will lower its nrice In otbar xror5s
when the creditor has The ontjop tbo
metals are drawn anort. whereas wbor
the debtor has the ontion tho r,o,,,., 49,,
held together aprroxin,te,y ,t TIC -,
fixed hv law. provided the demand cra,tod
is sufficient to absorb all of 10th ,nctsls
presented at the mint Socierv ia ,barn'
fore. Interested in bavipo tho nntion 60
cised Ivy the debtor. Indeed. thcre can Ina
no such thing as real bimefaIIism unIoss
the OPTION is exercised br tho ,;nhtor Tbs
exercise of the optjon bv the dchtor com.
rels the creIi,orclasses whether domes,ic
or foreign. to cxer. themselves 70 r,,;,.
tain he OIrItv between c-nld . nd Si1vor 4, r
the LEGAL ratio. whereas tbav niche f;nd
a profit in driyinr one of rho r,n.a,s 20 =.
nrcnium If they co,,ld rho, ,1o,,,na ~.
dearer metal
. The rich. of the dobtor 70 c,ooso -.
coin in which pavmcnt shall h, ,nnda or.
tends to obligations auc from rho rovorn.
rnent as well as to contracts hotween in.
tiyiduals. government. o,,Iic-,t;on "a
simply a debt due from ali tho nnonIa e.
one of the nronle and r. ;s ;,n,n,sihIo =.
Justify "A policv which makes Tho ;n,aro.,s
IF tho ope nor-o, - I'll, 81. st.,:-
tiop surerinr IN tho ,i,-h,s ~ a.. -,
who must he tuxod IN my !. VII,
Drior to 1s-3 silver VS. n, :, ,r,r,;,,r, :,
was never contended that n,finnoI hon.,
REQUIRED the navuopt of ,.o,-or,,,on. ~,
Uratiops in silver MI ,be Na,,ha,,.. 80
olutiou odoutrd NV. co,t-,,,. -; ,S-S *
rr-ass,y asserted rho ricbt of mo Irn;,o,
States 10 redeem coin oy,,;,,.t;,rs =, Go,
ard silver dollars os well as in old .,oir
Ipon this suhiect rho Cbic,,-, ,,o,rar,,,
reads. Wear onpossd 10 H. r., ,,,I
uracticc of surrcn6a-ip, ~ ~ hoI1ors =,
Tho ohl;,,,ions Of ,haT,,;,a1 -. ~.
ontio, ,,asarvn,I IN, ,a,,. =, .i'-.o W.
of rc5eam;ng Such otIio,,tir,, -, -.
silver coin or cold coin - - oa,,-,,,,I.
assumed bv some ~, a.. -, 80
mn,os co,,,o,I,. III s'-1 49, 7'ite, !,
~ ,r,..,,,r,- - -: -: E '"''ohs, anu