Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1896-08-27
legal tender money.
THE oRrplron.prproR ISSUE.

snail De MADE II l9 reAsonaple 10 sup
pose that he will require the debtor
TO pay in the dearer money If there ia
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 de-
msnd for the cheaper metal will
make that metal cheaper still. II, on
the other hand, the debtor exercises
the option, it is reasonable to sup
pose that he will pay in the cheaper
metal if one metal is perceptibly
cheaper than the other; but The de-
mand thus created for the cheaper
metal will raise the prices while the
lessened demand for the dearer metal
will lower its 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, therefore, interest
ed in having the option exercised by
the debtor. Indeed, there can be no
such thing as real bimetallism 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 be-
tween gold and silver at the legal
ratio, whereas they might find profit
in driving one of the metals to q
premium if they could then demand
the dearer metal.
GOVERNMENT OBLIGATIONS ALSO.
"The right of the debtor to choose
the coin In which payment shall be
made extends to obligations due from
the government as we'll as to contracts
between Individuals, A government
obligation is simply debt due from
all the people to one Of the people,
and it IS impossible to Justify a policy
which makes the interests of one per-
son who holds the obligation superior
to the rights OF the many who must
be taxed to pay it. When, prior to
1873, silver was at a premium. 1t
was never commended that national
honor required the payment of gov
eminent obligations IN silver, and the
resolution adopted by con-
gress in 1878 expressly asserted the
right Of the United States to redeem
coin obligations in standard silver
dollars as we'll 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 silver coin
or gold coin,
SECRETARY CARLISLE QUOTED.
at is constantly assumed by some
that the United States notes, COM
monty called greenbacks and the
treasury notes, issued under the act Of
1890, are responsible for the recent
drain upon the gold reserve, but this
assumption is entirely without foun-
dalton. Secretary Carlisle appeared
before the House committee on ap-
on January 81, 1896, and
[ quote from the printed report of his
testimony before the committee:
"'Mr. Sibley-I would like to ask
you (perhaps not entirely connected
with the matter under dlscussion)
what objection there could be to hav-
ing the option of redeeming either in
silver or gold-with the treasury in
stead of the note holder,
"'Secretsry Carllsle--If that policy
nad been adopted at the beginning of
he resumption, and 1 am not saying
his for the purpose of criticising the
action of any of my predecessors, or
anybody else-but if the policy of re-
serving to the government at the be-
ginning of resumption the option of
in gold or silver all its pa
Der presented, believe it would have
worked benefcially and there would
nave been no trouble growing out of
t, but the secretaries of the treasury
rom the beginning of resumption
nave pursued a policy of redeeming
n gold or silver, at the option of the
holder Of the paper, and if any secre.