The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-08-13


equal. we must look at the interests CT
society IN general in order to determine
to which side the option shall be given.
Under the binetallic system, gold and
silver are linked together by law az I
I fixed ratio and .anv person or persons
owning any quantity of either msIal
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, IL Is reasonable
J to supp ,se 2. ~ he will require the d@o-
tor TO pay in the dearer money, il there
/ is any perceptibie difference between
/ the bullion values of the metals. This
new demand created for either metal
Will make that metal dearer still. while
( the decreased demand for the cheaper
metal will make that metal cheaper
stia. II. on the other liant. the debtor
exercises the option IL is rea sonable to
suppose that he viii r1v ia The cheaper
metal. IL ons metal is perceptio!y cheap
or than ;hs cher, but the demand !nus
created for the cheaper metal viii raise
/ its price, 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 op-
ton, the metals are held together ap-
proximately at the ratio fixed by iaS;
provided the demand created Is SuT1i-
cient to absorb all or both metals pre-
scented at the mint.
Society is, therefore, interested in hav-
! ing the option exercised by the debtor
Indeed there can be no such thing as
real bimetallism unless the option Is
exercised by the debtor Tne exercise
of the option by the debtor compels the
. IL r1-h or 1nms<rfc
foreign, to exert themselves TO maintain
the parity between gold and silver at
the legal ratio: whereas, they might nnd
a profit in driving one of the metals TO
a premium If they could then demand
the dearer metal The right OF the debt
or to choose the coin in which payment
shall be made extends TO obligations
due from the government as well as 10
contracts by individuals A govern
ment obligation is simply a debt due
from the people to one person, and II Is
impossible TO justify a policy which
makes the interests OF enc person who
holds the obligation superior TO the
rights Of the many who must be taxed
to pay it.
Wher, prior to 1873, silver was at a
premium, it was never contended that
national honor required the payment OF
government obligations in silver ana
the Matthews resolution, adopted by
congress In 1873. expressly asserted the
right of the United States TO redeem
coin obligations in standard silver doi-
lars as well as in gold coin.
Upon this subject the Chicago plat
form reads: 1--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
1t is constantly assumed by some
that the United States notes, commonly
called greenbacks, and the treasury
notes issued under the act of 1880 are
responsible for the recent drain upon
the gold reserve but this assumption
is entirely without foundation. Secre-
tary Carlisle appeared before the house
committee on appropriations on Janu-
airy 81, 1895, and / quote from the print
ed report of his testimony before the
committee:
.Mr Sibley-I would like to ask you
(perhaps not entirely connected with the
matter under discussion) what objec-
ticn there could be to having the option
of redeeming either in silver or gold.
note-holder.'
Secretary Carisle-If that policy had
been adopted at the beginning of the
resumption, and 1 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 re-
sumption the option of redeeming in
gold or silver all its paper presented.
had been adopted, I believe IL would
have worked beneficiahy and there
would have been no trouble growing
out OF il, but the secretaries OF the treas
ury from the beginning of resumption
have pursued policy of redeeming in
gold or silver at the option of the holder
Of the paper and if any secretary had
afterwards attempted to change that
policy and force silver upon a man who
wanted gold. or gold upon a man who
wanted silver, and especially if ne made
the attempt at such a critical period
as we have had in the last two years.
my judgment is. it would have been
very disastrous"
| do not agree with the secretary that
il was wise 20 follow a bad precedent, |
but from his answer it viii be seen that !
the fault does not lie With the green |
Eacks and the treasury but rather with |
the executive officers. VINO have seen !
fit TO surrender a right which should |
have been exercised for the protection |
of the interests OF the people. This ex- /
ecutive action has already been made /
the excuse for the issue of more that I
$259, 600 600 in bonds, and IL is impossible 1
u estimate the amount of bonds which /
may hereafter be issued Z this policy Is I
continued.
We are told that any attempt upon the |
part OF the government to redeem it's OBJ /
legations in silver would put premium I
upon gold. but why should IL? The
Bank OF France exercises the right 10 /
redeem all bank paper In either gold o.
SILVER and yet France maintains the
parity between gold and silver at the
ratio OF l51z to ! and retains in circula-
ton more silver per capita than We do
in the United States.
II may be further ans were,I that our
opponents have suggested no feassb..
plan for avoiding the danger which they
fear. The retirement OF the greenbacks
by the treasury notes would not pro
tect the treasury. because the same pol
lev which now leads the secretary 20
redeem all Government paper in gold
when gold is demanded will require the
OF ell silver dollars and sil-
yer certificates in GOLD II the green5acks
and treasury notes are Withdrawn
from circulation More than this. n
the government should retire Its paper
and throw upon the banks the necessity
u furnishing coin redemption the banks
would exercise the right 70 furnish
elmer gold or silver In other word.
they would exercise ;ae option Just as
ne government ought 10 do noE. The
government must either exercise TIE .