The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1899-03-24

Dictionary defines bimetallism as "Tne
legal obligation of a national mint to
coin both gold and silver at a fixed
ratio between the two metals, coupled
with a law giving debtors the power,
unless prevented by special contract, to
satisfy their creditors by payment in
either of the metals thus coined
There is nothing about concurrent cir
culation in that.
The final report of the royal commits
sion on gold and silver 0SS8) describes
bimetallism thus: "a bimetallic sys-
tenn of currency, to be completely eff
f%ective, must, in the view Of those who
advocate it, include two essential feat
ures: (a) An open mint ready to coin
any quantity of either gold or silver
which may be brought to it. (b) The
right on the part of the debtor to dis
charge the liabilities, at his option, in
either Of the two metals, at a rate
fixed by law"
There is nothing about concurrent
circulation there. Observe also, that
the commission, in giving the defini-
ton, state it to be the view held by
those who advocate bilnetallism. We
all truly recognize the essentials of
bimetallism, and deny the theory Of
necessary concurrent circulation when
we declare the right of the debtor to
pay in the cheaper metal. If bimetal-
lism could maintain a constant and ex-
act parity of the two ratios, there new
err would be any cheaper metal, and
our declaration of the debtors right
would be a supererogation.
Of course, every bimetallist would
be glad, for the convenience Of inter
national traders and bill brokers, if the
two ratios could be made constantly to
coincide. But bimetallists are not
willing to see civilization strangle sim
of figuring q difference in ratios. And
every independent bimetallist knows
that the par exchange" through a par
ity of the ratios Is a trifling conven-
fence put forward as a specious argu-
ment to conceal the real purpose Of
decentralization, which is the perpetual
ton Of debts. Independent ~bimetallists
know that the concurrent circulation
OF the two metals in the same country
is not necessary for the success of hi
metallism. For if the two ratios diff
fer, the dearer metal, by operation Of
the Gresham law, begins to flow out
of the country to some other country
where it will buy more than it will
buy here. This causes a relative
scarcity Of the other and cheaper met
al, increases the demand for it, and
thereby maintains it's value at the true
parity. And his true parity" is not,
as many persons seem to suppose to be,
between gold money and silver money;
it is to be between money and prop
erty.
I repeat it, for the gist Of the whole
matter is here: The parity which is
to be maintained Is not that between
gold and silver; it is that between
money and property. And bimetallism,
by reason of the Gresham law, does
this better than recommendation ever
can. There could be no such thing as
the double standard If it were not for
the Gresham law. If the two metals
were forever at a parity of ratios, as
SO many enormously think that bimet-
allism requires, there would be no
double standard. There would be only
a single standard, exactly as we have
now, except that it would be at a
higher price level. 1t is the easy tilt
between gold and silver under the op-
Grafton of the Gresham law that makes
bimetallism so sensitive and so supe-
rior to recommendation as a stable
measure of value.
BRONSON G.. KELLER.