The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-08-17
ADVANTAGES OF BIMETALLIsM.
Theoretical statement Thereof bya Euro
mean Political Econoinist

The theoretical advantage of the BIZ
metallic system is best stated by Euro
pean writer on political economy, who
suggests the following illustration: A
river fed from two sources is more uni.
form in volume than river fed from one
| source-the reason being that when one of
the feeders is swollen the other mny be
low; whereas, IA river which has but one
| feeder must rise or fall with that feeder.
| So i'm the case of bimctnllism-the 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
| changeablc in its purchasing power than
| the dollar which rests on one metal only
If there are two kinds of money the op.
| ton must rest either with tine debtor
! or with the creditor Assuming that their
| rights are equal we must look AT the in.
| terests of society in general in order to
| determine To which side the option should
| be given. Under the bimetallc 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 i'm which pay
ment shall be made il is reasonable To sup
pose that he Will require the debtor to
pay in the dearcr metal if there is any
perceptible difference between the bullion
values of the metals. This new demand
created for the dearer metal will make
that metal dcarcr still, while the de-
creased demand for the cheaper metal will
make that metal cheaper still
If, on the other hand the debtor exer-
cises 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 demand thus created
for the cheaper metal will 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 option the metals are
held together approx mately at the ratio
fixed by law, provided the demand created
is sufficient to absorb all of both metals
presented at the mint. Society il, there
fore, interested in having the option exer-
cised 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 com
pcls the creditor classes, whether domestic
or foreign, to exert themselves to main
tain the parity between gold and silver ut
the legal ratio whereas they might find
profit in driving one of the metals to a
premium If they could then demand the
dearer metal
The right of the debtor To choose the
coin in which payment shall be made cx-
tends TO obligations due from the govern
mcnt rs well as to contracts between in
divduals A government obligation is
simply n debt due from all the people To
one of the people, and IL is impossible To
justify policy which makes the interests
of the one person who holds the oblga-
ton superior TO the rights Of the many
who must be taxed to pay t. When,
prior to 1873, silver was at premium, il
was never contended that national honor
required the payment of government OBJ
legations in silver, and the Matthews res
olutiOn, adopted by congress in 1878, ex.
pressly asserted the right of the United
States To redeem coin obligations i'm stand
ard silver dollars as we'll as in gold coin
Upon this subject the Chicago platform
reads: I'VE 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 rcdeeming 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 1890, are responsible for the recent drain
upon the gold reserve. but this assumption
Is entirely without foundation