The Leon reporter. (Leon, Iowa) 1887-1930, 1901-12-26
The Meaning of slmetallism M.

Blmetallism is the name given to
and silver are used as full legal tender
money at fixed ratio, and admitted to
unlimited coinage. The Kansas City
platform declared in favor of the free
coinage of silver as well as it's unlimit-
ed coinage, the reason being that free
coinage is now accorded to gold and
was formerly accorded to both metals.
Under the binetallic system the two
metals are treated exactly alike A
charge sufficient to cover the cost,
would, however, be entirely consistent
with the bimetallic system. Mr.. Car
hsle favored such q charge in 1878
when he denounced the gold standard
but such charge would create diff
erence between the coin and the bull
lion value of the coin. If, for instance,
the government charged one cent for
converting bullion into coin, the coin
would necessarily lose one cent by
melting and the bullion value would,
therefore, remain one cent below the
coinage value.
Bimetallism does nor depend upon
any particular ratio. We first had BIZ
metallism in this country at the ratio
of 10 to J., and afterwards at the ratio
of 16 to 1. Other nations have had BIZ
metallism at different ratios. as. for
instance, France, at the ratio of 1515
to l. The ratio of 16 to was specific
ally named in the Chicago platform
and afterwards in the Kansas City
platform, first. because that was the
legal ratio existing between the metals
when characterization took place; Sec
ond, because it is the ratio at which
the standard silver dollars and gold
ooin now circulated; third, because the
advocates of bimetallism believe that
the opening of the mints at that ratio
would create a demand for silver which
would make an ounce of silver, wheth-
er melted or coined, worth $1.29 in
gold the world over; ana, fourth, be-
cause, if a new ratio were desired, it
would be impossible to select it intelli-
gently without first opening the mints
at the present ratio in order to, meas
ure the effect that free coinage would
have upon the price of silver bullion.
When the Sherman law of 1890 was en-
acted it was thought that it would
utilize all the silver available for coin
age, and under the stimulus of this
law-created demand silver rose to
S1.sl an ounce, not only here, but all
over the world
1t was necessary to name specific
ratio because advocates of the gold
standard had for several years been Sc
curing office on indefinite or ambig-
uous platforms, and then, when in
office, had been betraying their con-
stituents. 1t became necessary to
make the platform specific in order to
protect the voters from fraud and de-
ception. That necessity is still pre-
sent; a general demand for bimeta1lism
would amount to an abandonment of
bimetallism because gold democrats
would secure nominations on such
platform, and then, if electeted,
would, as they have in the past, act
with the republicans to maintain the
gold standard.
AS to the second question, namely,
whether concurrent circulation of the
two metals is essential to bimetallic
system? To answer this in the mega
tive withoutfurthe explanation might
lead to misunderstanding. The con-
current circulation of the two metals,
while desirable, is not absolutely nee
essary to the maintenance of the BIZ
metallic system, but bimetallists be-
lieve that the parity would be main
tanned in this country at the ratio of
l6 to l. We had bimetallism from
1892 to 1884, during nearly all of which
time gold was at q premium because
our mint ratio, compared with the mint
ratio of France and some other coun-
tries, undervalued gold. When in 1884
l6 to 1, silver was then undervaluea, as
compared with the ratio of France and
some other countries, and, therefore,
silver went to a premium and remained
at a premium until it was demonetized.
During both of these periods we had
bimetallism, and it was possible to
coin gold or silver without limit as to
amount into full legal tender money at
fixed ratio. AS above remarked, it is
the belief of bimetallists that the
parity can be maintained at the ratio
of 16 to l, and this belief is founded
upon two arguments: first, that the
monetary use of silver would absorb
all the silver available for coinage at
our mints, thus raising the bullion
price of silver to $1.29 an ounce; and,
second, that no gold nation is now
coming gold and silver at ratio 1hore
favorable to gold than ours. If any large
nation opened its minis to the free and
unlimited coinage of gold and silver at
1515 to l, it would get some of our sill
yer and silver would go to premium.
II, on the other hand, any large nation
opened it's mints to the free and I'M
limited coinage of both metals at the
rate of 1917 to 1, or some higher ratio,
And now they say there isa tobacco
combine in the Philippine islands.
This ought to make Congressman Hull