Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1896-08-22
Danger of Appreciation.

well being of the nation-aye, of civili-
zation ltself-depends upon the prosper
ity Of the masses.
Danger of Appreciation.
What shall It profit US to have a dollar
which grows more valuable every day
II such a dollar lowers the standard Of
and brings distress to the
What shall 1t profit us IL In try
to raise our credit by increasing the
power OF u dollar we de-
stroy our ability TO pay the debts al
ready contracted by lowering the pur-
power Of the products with
which those debts must be paid? If IL
is true, as Is constantly asserted. that
gold standard will enable us to bor-
row more money from abroad, l reply
the restoration OF blmetalllsni Will
restore the parity between money and
property and thus permit an era of pros
terity which will enable the American
people to become loanera instead Of per-
borrowers. Even IL we desire to
borrow, how long car We continue bor-
rowing under a system which by lower-
ing the value OF property weakens the
foundation upon which credit fsstsf
Even the holders Of xed investments,
though they gain an advantage from
the appreciation of the dollar. certainly
see the injustice of the legislation which
gives them this advantage over those
whose Incomes depend upon the value
OF property and products. III the hold
ers of fixed Investments will lot listen
to arguments based upon justice and
equity, / appeal TO them TO consider the
interests OF posterity. We do not lily
for ourselves alone. Our labor, oar self
denial and our anxious care-all these
are for those who are to come after us
- z. -. g.. A..N xNrn annnnf
protect our children beyond the period
Of our lives. Let those who are now
reaping advantage from a vicious hnan
clal system remember that in the years
to come their own children n their
children's children may through the OPP
Grafton Of his same system be made to
pay tribute to the descendants Of those
who are wronged today.
AS against the maintenance OF a gold
standard. either permanently or until
other nations can be united for its over
throw, the Chicago platform presents a
clear and emphatic demand for the i'm
mediate restoration Of the free and I'M
limited coinage of silver and gold at the
present legal ration of 16 to l without
waiting for the aid or consent of any
other nation. We are not asking that a
new experiment be tried; we are Insist
ing upon q return TO a financial policy
dppTONtu ny the experience VI IlStOly
n supported by all the prominent
statesmen of our nation from the days
Of the first president down to 1878. When
we ask that our minis be opened 10 the
free and unlimited coinage Of silver into
full legal tender money, we are simply
asking that the same mint privileges be
accorded TO silver that are now &c
corded to gold. When we ask that this
coinage be at the ratio of 16 to- We sim
4, ..Iw 49, a - a-.-a anI H.
standard silver dollar-which, be it re-
of pure silver as the first dollar coined
at our mints-retain their present
weight and finehess.
Debtor VS.. Creditor.
IL there are two kinds Of money the
option must rest either with the debtor
or with the creditor. Assuming that
their rights are equal, We must Dol at
the interests Of society in general in or
der to determine to which side the OPP
ton should be given. Under the biz
metallic system gold and silver are
linked together by law at a fixed ratio,
and n person or persons owning any
quantity Of either metal can have the
same converted Into full legal tender
money. III the creditor has the right TO
GIlOOSt liz Ilcl&l III lllIl Pay lllFlAk
shall be made, IL is reasonable to sup
pose that he will require the debtor TO
pay In the dearer metal II there Is any
perceptible difference between the bull
lion values of the metals. This new de-
mand created for the dearer metal will
make that metal dearer still. while the
decreased demand for the cheaper metal
will make thai metal cheaper still.
If, on the other hand, the debtor eXer-
49, L. - - . . n aANA 1 IN ~
bose that he will pay in the cheaper
metal il one metal Is perceptibly cheap
or than the other; but the demand thus
created for the che""er metal will raise
its price, while the isssened demand for
the dearer metal VIII lower its price.
In other words. when the creditor has
the option the metals are drawn apart,
whereas, when the debtor has the OPP
ton the metals are held together APP
proximately at the ratio fixed by law,
provided the demand created is suf-
ficient to absorb all Of both metals pre-
scented at the mint. Society is therefore
interested in having the option exer
cised by the debtor. Indeed there can
be no such thing as real bimetallism un-
less the option is exercised by the debt
or. The exercise Of the option by the
debtor cOmpels the creditor classes,
whether domestic or foreign. to exert
themselves to maintain the parity he
tween gold and silver at the legal ratio,
whereas they might find n profit in
driving one of the metals to a. premium
II 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 he
tween individuals. A government OBJ
1ipafinn Ia cipnnJN a Anht dino from oil
the people to one Of the people, and 1t
is impossible to Justify a policy which
makes the interests of the n person
who holds the obligation superior TO the
rights of the many who must be taxed
to pay 1t. When prior to 1873 silver was
at u premium it was never contended
thai national honor required the pay-
ment Of government obligations in sill
yer. and the Matthews resolution adopt
ed by congress in 1878 expressly asserted
the right Of the United States 10 redeem
coin obligations in standard silver dol
lars as well as in gold coin.
Upon this subject the Chicago plat
form reads: 1--WE are opposed to the pol
Icy and practice Of surrendering to the
holders OF the obligations Of the United
States the option reserved by law to the
government of redeemlng such obliga-
tons In either silver coin or gold COIN
Why Treasury Reserve Vanishes.
1t is constantly assumed by some that
the United States notes commonly
called greenbacks and the reasury
notes issued under the act Of 1890 are re-
sponsible for the recent drain upon the
gold reserve, but this assumption is en-
tirely without foundation. Secretary
Carlisle appeared before the house com
mittee on appropriations on January q,
1895, and l quote from the printed re-
port of his testimony before the com
mittee:
MIR. Sibley: I would like to ask you
(perhaps not entirely connected with
the matter under discussion) what OBJ
lection there could be to having the op-
tlon of redeeming in either silver or gold
lie with the treasury instea-- Of the note-
holder?
Secretary Carlisle: If that policy
had been adopted at the beginning OF
resumption-and l am not saying this
for the purpose Of criticising the action
of any Of my predecessors or anybody
else-but if the policy OF reserving to the
government at the beginning of resump-
ton the option of redeeming in gold OF
silver all It's paper presented
had been followed, 1 believe II
would have worked beneficially, and
there would have been no trouble grow
ing out OF 1t, but the secretaries of the
treasury from the beginning OF resump.
ton have pursued a policy of redeeming
In gold or silver at the option of the
holder of the paper, n II any secretary
had afterwards attempted to change
that policy and force silver upon a man
L -~1l -