Evening Star Newspaper, August 13, 1896, Page 10

' THE EVENING STAR, THURSDAY, AUGUST 18, 1896-TWELVE PAGES. WILLIAM JENNINGS BRY! MR. BRYAN'S SPEECH Text of His Madison Square Garden Address. PLEA FOR COINAGE OF WHITE METAL Discusses Various Planks of the Democratic Platform. AS TO STANDARDS —_—_+—_—_. Ss ARGUE The speech delivered by Mr. Bryan at Madison Square Garden, New York city, last night, upon being notified of his nomina- tion for President, follows: fr. Chairman, Gentlemen of the Com- mittee and Fellow-citizens: I shall at a future day and In a formal letter accept the nomination which is now tendered by and I shall at ification committee, me touch upon the issues presented © platform. It is fitting, however, t at this time, In the presence of those assembled, I speak at some length in rd to the campaign upon which we are entering. We do not underestimate rrayed egainst us, nor are we ful of the importance of the strug- ch we are engaged; but, relying <s upon the righteousness of our shall defend with all possible taken by our party. We d that some of our oppo- e absence of better argument, res6rt to abusive epithets, but they may rest assured that no language, how wh w vio! no invectives, however vehement, wili lead us to depart fn a single hair's breadth from the course marked out by the national convention. The citizen, either public or private, who assails the character and questions the patriotism of ‘gates assembled in the Chicago nvention assails the character and ques- tions the patriotism of the millions who have arrayed themselves under the banner there raised. The Fiatform Not a Menace. It has been charged by men standing sh in business and political circles that our platform is a menace to private se- curity and public safety; and it has been asserted that those whom I have the honor, for the time being, to represent not only meditate an attack upon the rights of prop- erty, but are the foes of scclal order and national honor. Those who stand upon the Chicago platform are prepared to make known and to defend every motion which influences them, every purpose which ani- them, and every hope which inspires They onderstand the genius of our Institutions, they are stanch supporters of the form ef government under which we and liv they build their faith upon ons laid by the fathers. Andrew has stated with admirabie clear- 1 with an emphasis which cannot vassed, both the duty and spirit of incttons in society will der every just government. of talents, of education, or of anot be produced by human insti- n the full enjoyment of the gifts and fruits of superior industry, nomy and virtue every man is equally ed to protection by law.’ d to none in our devotion to the just enunciated. Cur campaign or its object the reconstruction of We cannot insure to the vicious ‘3 of a virtuous life; we would not home of the provident tn order the wants of the spendthrift; we t propose to transfer the rewards of Y¥ to the lap of indolence. Property do has not soci the invade t to supply do r indus is and will remain the stimulus to endeavor and t » compensation for toil. We believe, in the Declaration of Inde- . that all men are created equal, t does not mean that all men are or qual in possessions, In ability or in i mply means that ail shail stand al before the law, and that government Is shall not, in making, construing or enforcing the law, discriminate between citizens. “I assert that property rights, as well as the rights of persons, are safe in the hands of the common people. Abraham Lincoln, in his message sent to Congress fn December, 1861, said: ‘No men living are more worthy to be trusted than those who toil, none are less Inclined to take or touch aught which they have not honestly earred.’ I repeat his language with un- qualified approval, and join with him in the warning which he added, namely: ‘Let them beware of surrendering a political power which they already possess, and which power, If surrendered, will surely be used to close the doors of sdvance- ment against ‘h as they, and to fix new disabilities and burdens upon them, until all of Itberty shall be lost.’ Those who daily follow the tnjunctton, ‘In the sweat of thy face shalt thou eat bread,’ are now, as they ever have been, the bulwark of law the source of our nation’s ne of peace and its surest ne of war. 3ut I have only read a part of Jack- fon's utterance. Let me give you his con- fon: ‘But when the iaws undertake it natural and just ady a distinctions, to grant ti- and exclusive privileges, to make the rich richer and the potent more powerful—the humble members of society, the farmers, mechanics and the 2 er the time like favors ht to complain of their government.’ pport the Chi the quotati “We are not surprised to find arrayed us those who are the beneficiaries of government favoritism—they have read platform. Nor are we surprised to n that we must in this campaign face the hostility of those who find a pecuniary advantage In advocating the doctrine of ssing upon the rights We eleoms such op- posi ig the highest tndorsement which could be bestowed upon us. ve are content to have the co-operation of those who desire to have the government administered without fear or favor. It is not the wish of the general public that trusts should spring into existence and override the weaker members of society; it is not the wish of the general pubile that these trusts should destroy compe- tition and then collect such tax as they will from those who are at their mercy, nor is it the fault of the general public that the instrumentalities cf government have been go often prostituted to pur- poses of private gain. Those who stand upon the Chicago platform believe that the government should not only avoid wrongdoing, but that it should also pre- vent wrongdoing, and they believe that the law should be enforced alike against all enemies of the public weal. They do not excuse petit larceny, but they declare that grand larceny is equally a crime; they do not defend the occupation of the highwayman, whe robs the unsuspecting traveler, but they include among tho transgressors those who, _ throug! tho }rrore polite and less hazardous means of legislation, appropriate to their own use the proceeds of the toil of others. The commandment, ‘Thou shalt not steal,” thundered from Sinai and reiterated in the legislation of all lands, is no respecter of persons. It must be applied to the great as well as the small; to the strong as well as the weak; to the corporate per- son created by law as well as to the per- son of flesh and blood created by the Almighty. 0 government is worthy of the name which is not able to protect from every arm uplifted for his injury the humblest citizen who lives beneath the flag. It follows as a necessary con- clusion that vicious legislation must be remedied by the people who suffer from the effects of suck legislation and not by those who enjoy its benefits. Income Tax. “The Chicago platform has been con- demned by some because It dissents from an opinion rendered by the Supreme Court de- claring the ircome law unconstituttonal. Our critics even go so far as to apply the name anarchist to those who stand’ upon that plank of the platform. It must be re- membered that we expressly recognize the binding force of that decision so long as it stands as a part of the law of the land. ‘There ts in the platform no suggestion of an attempt to dispute the authority of the Supreme Court. The party ts simply pledged to use ‘all the constitutional power which remains after that decision, or which may come from its reversal by ‘the court as it may hereafter be constituted.’ Is there any disioyalty in that pledge? For a hundred years the Supreme Court of the United States has sustained the principle which underlies the income tax. Some twenty years ago this same court sustained with- out a dissenting voice an income tax law almost Identical with the one recently over- thrown. Has not a future court as much right to return to the judicial precedents of a century as the present court had to de- part from them? When courts allow re- hearings they admit that error is possible. The late decision against the income tax was rendered by a majority of one after a rehearing. ‘While the money question overshadows all other questions in importance, I desire it distinctly understood that I shall offer no apology for the income tax plank of the Chi- cago platform. The last income tax law sought to apportion the burdens of govern- ment moze equitably ameng those who enjoy the protection of the government. At present the expenses of the federal government, collected through internal revenue taxes and import duties, are especially burdensome upon the poorer classes of society. A law which collects from some citizens more than their share of the taxes and collects from other citizens less than their share, ts sim- ply an indirect means of transferring one man’s property io another man’s pocket, and while the process may be quite satis- factory to the men who escape just taxation, it can never be satisfactory to those who are overburdened. The last income tax law, with {ts exemption provisions, when con- sidered in connection with other methods of taxation in force, was not unjust to the pos- sessors of large incomes, because they were not compelled to pay a total federal tax greater than thelr share. The income tax is not new, nor is it based upon hostility to the rich. The system fs employed in several of the most important nations of Europe, and every income tax law now upon the statute Looks in any land, so far as I have been able to ascertain, contains an exemp- tion clause. While the collection of an in- come tax in other countries does not make it necessary for this nation to adopt the suggestion, it suggests the moral lan- guage of those who denounce the income tax as an assault on the well-to-do. “Not only shall I refuse to apologize for the advocecy of an income tax law by the national convention, but I shall also refuse to apologize for the exercise by it of the right to dissent from a decision of the Supreme Court. In a government like ours every public official is a public serv- ant, whether he holds office by election or by appointment; whether he serves for a term of years or during good behavior, and the people have a right to criticise his official acts. ‘Confidence is everywhere the parent of despotism; free government exists In jealousy and not in confidence’— these are the words of Thomas Jefferson, and I submit that they present a truer conception of popular government than 1s entertained by those who would prohibit an unfavorable comment upon a court de- cision. Truth will vindicate itself; only error fears free speech. No public official who conscientiously discharges his duty as he sees It will destre to deny to those whom he serves the right to discuss his official conduct. The Paramount Question {s Money. “Now, let me ask you to consider the paremount question of the campaign—the money question. It is scarcely necessary to defend the principles of bimetallism. No national party during the entire history of the United States has ever declared against it, and no party in this campaign has had the temerity to oppose it. Three parties—the democratic, populist and silver parties—have not only declared for bimetal- lism, but have outlined their specific legis- latton necessary to restore silver to its an- cient position by the side of gold. The re- publican platform expressly declares that bimetallism is desirable when St pledges the republican party to aid in securing it as soon as the assistance of certain foreign nations can be obtained. Those who rep- resented the minority sentiment in the Chi- cago convention opposed the free coinage of sliver by the United States by independ- ent action on the ground that, in their Judgment, it ‘would retard or entirely pre- vent the establishment of international bi- metallism, to which the efforts of the gov- ernment should be steadily directed.’ When they asserted that the efforts of the gov- ernment should be steadiiy directed toward the establishment of international bimetal- lista they condemned monometallism. The gold standard has been weighed in the bal- ance and found wanting. Take from it the powerful support of the. money-owning and tho money-changing classes, and it cannot stand for one day in any nation in the world. It was fastened upon the United States without discussion before the peo- ple, and lis friends have never yet been ‘willing to risk a verdict before the voters upon that issue. “There can be no sympathy or co-opera- tion between the advocates of a universal gold standard and the advocates of bi- metallism Between bimetallism—whether independent or international—and the gold standard there is on impassable gulf. Is this quadrennial agitation in favor of in- ternational bimetallism conducted in good faith, or do our opponents really desire to maintain the gold standard permanently? Are they willing to confess the superiority of a double standard when joined in by the leading nations of the world, or do they stil irsist that gold is the only metal sult- able for standard money among civilized nations? If they are, in fact, desirous of securing bimetallism, we may expect them to point out the evils of a gold standard and defend bimetallism as a system. If, on the other hand,.they are bending their energies toward the permanent establish- ment of a gold standard, under cover of a declaration in favor of international bi- metallism, I am justified in suggesting that honest money cannot be expected at the hands of those who deal dishonestly with the American people. The Test of Honest Money. “What is the test of honesty in money? It must certainly be found in the purchas- ing power of the dollar. An absolutely honest dollar could not vary in its general purchasing power; it would be absolutely stable when measured by average prices. A dollar which increases -in purchasing pewer {s just as dishonest as a dollar which decreases in urchasing power. Professor Laughlin, now of the University of Chicago, and one of the highest gold standard authorities, in his work on bi- metallism not only admits that gold does not remain absolutely stable in value, but expressly. asserts ‘that there is no such thing as a standard of value for future payments, either in gold or silver, which remains absolutely invariable.” He even suggests that a multiple standard, wherein the ‘unit {s based upon the selling prices of @ number of articles of general consump- tien,’ would be a better standard than eith- er gold or silver, or both, because ‘a long- time contract would thereby be paid at its maturity by the same purchasing power as was given in the beginning.’ “It cannot be successfully claimed that monometallism or bimetallism, or any oth- er system, gives an absolutely just stand- ard of value. Under both monometallism and bimetallism the government fixes the weight and fineness of the dollar, invests it with legal-tender qualities, and then ex- tends the mints to its unlimited coinage, the purchasing power of the dollar to be determined by the number of dollars. Bi- metallism is better than mcnometallism not because It gives us a perfect dollar, that is, a dollar absolutely unvarying in Its general purchasing power, but because it makes a nearer approach to stability to honesty, to justice than a_gold standard possibly can. Prior to 1878, when there Were enough open mints to permit all the geld and silver available for coinage to find entrance into the world’s volume of stand- ard money, the United States might have maintained a gold standard with less in- jury to the people of this country; but now, when each step toward a universal gold standard enhances the purchasing power of gold, depresges prices, and transfers to the pockets of the creditor class an unearned increment, the influence of this great na- tion must be thrown upon the side of gold unless we are prepared to accept the na- tural and legitimate consequences of such @n act. Any legislation which lessens the world’s stock of standard money increases the exchangeable value of the dollars. Therefore, the crusade against silver m inevitably raise the purchasing power ¢ mcney and lower the money value of ul! other forms of property. b onetization of Silver. “Oyr opponents sometimes admit that it was a mistake to demonetize silver, but in- sist that we should submit to-present con- ditions rather than return to the bimetal! system. They err in supposing that we have reached the end of the evil results of a gold standard; we have not reached the end. The injury is a continuing one, and no person can say how long the world is to suffer from the attempt to make gold the only standard money. The same influences which are now operating to destroy sliver in the United Btates will, if successful here, be turned against other silver-using coun- tries, and each new convert to the gold standard will add to the general distress. So long as the scramble for gold continues prices must fall, and a general fall in prices is but another definition of hard times. “Our opponents, while claiming entire disinterestedness for themselves, have ap- pealed to the selfishness of nearly every class of society. Recognizing the disposi- tion of the individual voter to consider the effect of any proposed legislation upon himeelf, we present to the American people the financial policy outlined in the Chicago platform, believing that it will result in ihe Sreatest good to the greatest number. “The fariners are opposed to the gold standard because they have felt its ef- fects. Since they scll at wholesale and buy at retail they have lost more than they have gained by falling prices, and be- side this, they hava found that certain fixed charges have not fallen at all. Taxes have not been perceptibly increased, al- though it requires more of farm products now than formerly to secure the money with which to pay taxes. Debts have not fallen. The farmer who owed $1,000 fs still compelled to pey $1,000, although it may be twice as difficult as formerly to obtain the dollar with which to pay the debt. Rail- road rates have not been reduced to keep pace with falling prices, and besides these items, there are many more. The farmer lias found just complaint against the gold standard. The wage earners have been in- jured by a gold standard and have ex pressed themselves upon the subject with great emphasis. In February, 1895, a peti- tion asking for the immediate restoration of the free and unlimited coinage of gold and silver at 16 to 1 was signed by the representatives of all, or nearly all, the leading labor organizations and presented to Congress. Wage earners know that while a gold standard raises the purchas- ing power of the dollar {t also makes it more difficult to obtain possession of the dollar; they know that employment is less permanent, loss of work more probable and re-employment less certain. A gold standard encourages the hoarding of money because money is rising; it also dis- courages enterprise and paralyzes industry. On the other hand the restoration of bi- metallism will discourage hoarding be- cause, when prices are steady or rising, money cannot afford to lic idle in the bank vaults. The farmers and wage earners to- gether constitute a considerable majority of the people of the country. Why should their interests be ignored in considering financial legislation? A monetary system which is peculiarly advantagcous to a few syndicates has less to commend it than a system which would give hope and encour- agement to those who create the nation’s wealth. ‘Our upponents have made a special ap- peal to those who hold fire and life in- surance policies, but these policy holders say that since the total premiums received exceed the total losses paid a rising stand- ard must be of more benefit to the compa- nies than to the policy holders. Deposits in Savings Banks. “Much solicltude has been expressed by our opponents for the depositors in savings banks. They constantly parade before these depositors the advantages of a gold stand- ard, but these appeals will be in vain, be- cause savings bank depositors know that under a gold standard there is increasing danger that they will lose their deposits, because of the inability of the banks to col- lect their assets, and they still further know that if the gold standard is to continue in- definitely they may be compelled to with- draw their deposits in order to pay lving expenses. “It is only necessary to note the increas- ing number of failures in order to know that a gold standard is ruinous to merchants and manufacturers. These business men do not make their profits from the people from whom they borrowed money, but from igs pecple to whom they sell their goods. If the people cannot buy, retailers cannot sell, and if retailers cannot sell, wholesale merchants and manufacturers must go into bank- ruptcy. “Those who hold as a permanent invest- ment the stock of railroads and of other en- terprises—I do not include those who specu- late in stocks or use stock holdings as a means of obtaining inside advantage in con- tracts—are injured by a gold standard. The rising dollar destroys the earning power of these enterprises without reducing their liabilities, and, as dividends cannot be paid until fixed charges have been satisfied, the stockholders must bear the burden of hard times. “Salaries in business occupations depend upon business conditions, and the gold standard both lessens the amount and threatens the permanency of such salaries. A Word About Salaries. “Official salaries, except the salaries of those who hold office for life, must, in the long run, be adjusted to the needs of those who pay the taxes, and if the Present financial policy continues we must expect the contest between the taxpayer and the taxeater to increase inHtterness. “The professional classes—in the main— derive their support:ifrom the producing classes, and can only enjoy prosperity when there is prosperity. among those who create wealth. od “I have not attempted to describe the effect of the gold standard upon all classes— in fact, I have only had: time to mention a few—but each person wrill be able to apply the principles expressedcto his own case. “It must also be remembered that it is the desire of people generdiiy to convert their earnings into real or perdonal property. This being true, in considering any temporary advantage which maysgome from a system under which the dollar -fises in its purchas- ing power, it must not be forgotten that the dollar cannot buy more:than formerly, un- less property sells for less than formerly. Hence, it will be seen that a large portion of those who may find some pecuniary advant- age in a gold standatd will discover that their losses exceed their’ gains. “It is sometimes asserted by our oppo- nents that a bank betongs to the debtor class, but this is not true of any solvent bank. Every statement published by a sol- vent bank shows that the asscts exceed the labilities. That is to say, while the bank owes @ large amount of money to its de- positors, it not only has enough on hand in money and notes to pay its depositors, but, in addition thereto, has enough to cover its capital and surplus. When the dollar is rising in value slowly, a bank may, by mak- ing short time loans and taking good secur- ity, avoid loss; but when prices are falling rapidly the bank is apt to lose more because of bad debts than it can gain by the increase in the purchasing power of its capital aad surplus. Duty of the Government. “It must be admitted, however, that some bankers combine the business of a bond broker with ordinary banking business, and these may make enough in the negouation of loans to offset the losses arising in legiti- mate banking business. As long as human ature remains as it {s there will always be danger that, unless restrained by the pub- Uc opinion or legal enactment, those who see a pecuniary profit for themselves in a certain condition may yield to the tempta- tion to bring about that condition. Jeffer- sen has stated that one of the main duties of the government is to prevent men from injuring one another, and never was that duty more iniportant than it 1s today. It is not strange that those who have made a promt by furnishing gold to the goveriiment in the hour of its extremity favor a finan- cial policy which. will keep the government dependent upon them. 1 believe, however, that I speak the sentiment cf the vast ma- Jority of the people of the United States When I say that a financial policy administered in behalf of all the people would make our government independent of any combination of financiers, for or domestic. “Let me say a word now in regard to cer- tain persons wi pecuniarily benefited by a gold standard, and who favor it, not from a desire to trespass upon the rights of ethers, but because the circumstances which surround them biind them to the ef- fect of the gold standard upon others. Senator Sherman Quoted. “I shall ask you to consider the langua of two gentlemen whose long public and high standing in the party to whic they belong will protect them from adver: criticism by our oppone tor Sherman said: “The corrency {3 a far more distre tien than Senators suppo other nations have gou on before. It is not possibie t Yage without the sor. Y person except a cap ny . Our own and through that op oper: alist out of debt or leur officer oF annuitant, it is a period of lo: danger; dassitude of trade, fall of wages, suspension of en bankruptcy and disas It means all dealers whose debts are wi ness capital, though one-third than thelr actual property. It means the fall of ail agricultural M Eroduetion without any great reduction of taxes. What prudent tran would dare to buiid a house, a rati- road, a factory or a barn with this certain fact before him? As I have said before, the salaried offic to must be’ the man whose 1s fixed for Iie, and not the man whose salary upon busi- ness _conditio When Mr. scribes contraction of the cu astrous to all the people except th talist out of debt and those who stand in a position similar io his, he 1s stating a truth Which must be apparent to every pers who will give the mat eration. Sherman was at that time speaking of the contraction of the volume of paper currency, but the principle which he set forth applies if there is a con jon of the volume cf the standard m of the world. Mr. Blaine’s Attitude. “Mr. Blaine discussed the same principle {n connection with the demonetization of silver. Speaking in the House of Represen- tatives on the 7th of February, 1878, he sald: ‘I belleve the struggle now going on in this country and other countries for a single gold standard would, if successful, produce widespread disaster in and tkroughout the commercial world. The de- struction of silver as money and the estab- lishing of gold as the sole unit of value must have a ruinous effect on ail forms of property except those invested which yield a fixed return In money. These would be enormously enhanced in value and would a disproportionate and unfair advan: over every other species of property 's it strange that the ‘holders of inve: menis which yield a fixed return in money’ can regard the demonetization of silver with complacency? May we not expect the hold- ers of other forms of property to protest against giving money a ‘disproportionate and unfair advantage over every other spe- cles of property? If the relatively few whose wealth consists largely in fixed investments have a right to use the ballot to enhance the value of their investments, have not the rest of the people the right to use the ballot to protect themselves from the dis- astrous consequences of a rising standard? The people who must purchase money with the products of toil stand in a position en- tirely different from those who own money or receive a fixed income. The well-being of the nation—aye, of civilization {tself— epends upon the prosperity of the masses. A Dollar Daily creasing in Value. “What shall it profit us to have a dollar which grows more valuable every day if such a dollar lowers the standard of civili- zation and brings distress to the people? What shall it profit us !f in trying to raise our credit by increasing the purchasing power of our dollar we destroy our ability to pay the debts already contracted by lowering the purchasing power of the products with which those debts must be paid? If it is asserted, as it constantly Is aseerted, that the gold standard. will enable us to borrow more money from abroad, I reply that the restoration of bi- metallism will restore the parity between money and property, and thus promote an era of prosperity which will enable the Amertcan people to become loaners of money instead of perpetual borrowers. Even if we desire to borrow, how long can we continue borrowing under a system which, by lowering the value of proper- ty, weakens the foundation upon which credit rests? “Even the holders of fixed investments, though they gain an advantage from the eppreciation of the dollar, see the in- justice of the legislation’ which gives them this advantage over those whose in- comes depend upon the value of property and products. If the holders of fixed in- vestments will not listen to arguments based upon justice and equity, I appeal to them to consider the interests of posterity. We do not live for ourselves alone. Our labor, our self-denial and our anxious care, all these are for those who are to come af- ter us as much as fot ourselves, but we cannot protect our condition beyond the period of our lives. Let:those who are now reaping advantage from a vicious financial system remember that in the years to come thelr own children and their children’s children may, through. the operation of this same system, be made to pay tribute to the descendants of those who are wrong- ed today. Return to the Old Policy. “As against the maintenance of a gold standard, either permanently or until other nations can be united for its overthrow, the Chicago platform presents a clear and em- platic demand for the immediate restora- tion of the free and unlimited coinage of silver and gold at the present legal ratio of 16 te 1 without waiting for the aid or corgent of any other nation. We are not asking that a new experiment be tried; we are insisting upon a return to a finan- celal policy approved by the experience of history and supported by all the prominert statesmen of our nation from the days of the first President down to 1873. When we ask that our mints be opened to the free and unlimited coinage of silver into full legal tender money, we are simply king that.the same mint privileges be ccorded to silver that are now accorded to gold. When we ask that this coinage be at the ratio of 16 to 1 we simply ask that our gold coins and the standard sil- ver dollar—which, be it remembered, con- tains the same amount of pure silver as the first silver dollar coined at our mints— retain their present weight and fineness. The Bimetallic System. “The theoretics!] advantage of the bi- metallic system is best stated by a Euro- peon writer on political economy, who sug- gests the following illustration: A river fed from two sources is more uniform in vol- ume than a river fed from one source, the reason being that when one of the feeders 1s swollen the other may be low; whereas, a river which has but one feeder must rise or fall with that feeder. So, in the case of bimetallism, the volume of me- tallic money -receives contributions from beth the gold mines and the silver mines, and therefore varies less, and the doll resting upon two metals, is less changea- ble in its purchasing power than the dol- Jar which rests on one metal only. “If there are two kinds of money the option must rest either with the 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 de- termine to which side the option should be given. Under the bimetallic system gold and silver are linked together by law at a fixed ratio, and any person or persons own- ing 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 in which payment shall be made, it is reasonable to suppose that he will require the debtor to pay in the dearer metal if there is any perceptible difference between the bullion value of the metals. This new demand created for the dearer metal will make that metal dearer still, while the decreased demand for the cheaper metal will make that metal aper still. f, on the other hand, the debtor exer- cises the option, it ts reasonable to sup- pose that he will pay In the cheaper metal if one metal is bly cheaper than the other, but th mand thus created for the cheaper metal will raise its price, while lessened demand for the dearer metal ll 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 to- gether approximately at the ratio fixed by law, provided the demand created 1s suf- ficient to absorb all of both met pre- sented at the mint. Society is, therefore, interested in having the option exercised by the debtor. Indeed, there can be no such thing as real bimetalli option Is exercised by the debter. The exercise of the option by the debtor com- pels the creditor classes, whether domestic or foreign, to exert themselves to main- tain the parity between gold and silver at the legal ratio, whereas they might find a profit in driving one of the metals to a premium {f they could then demand the dearer metal. The right of the debtor to choose the coin In which payment shall ie made extends to o ns due from the government as well as to contracts be- tween individuals, Government Obligation. “A government obligation is simply a debt ue from all the people to one of the peo- ple, and it is Impossible to justify a policy ich makes the interest of the one pei who holds the obligation superior to the rights of the many who must be taxed to pay tt. When, prior to 1 Iver was at a premium, it was nev mtended that rational honor re yment of s to redeem coir: idard silver dollars as W coin, “Upon this subject ll as In goid ¢ Chicago platform : ‘We are opposed to the policy and tice of surrendering to the holders of ions of the United States the op ved by law government of redeeming such obligations in either silver coin or gold coin. “It is con! y the U ned by some thet commonly S| y notes, i notion is entirel tary Carlisle app tee on appropr . and I quote fri testimony without founda- before the ations on Jan- the printed before the com- —I weuld like to ask you (per- aps not entirely connected with the m ter under dis en) what objection there ceuld be to having the option of redeem- ing either in silver or gold Ito with the treasury instead of the noteholder?’ ““Seeretary Carlise--If that policy had heen adopted at the beginning of resump- tion—and I am not saying this for the pur- pose of criticising the action of any of my predecessors or anybody else—but if the policy of reserving to the government at the bexinning of resumption the option of redeeming in gold er sfiver all its paper presented, I believe {t would have worked beneficially and there would have been no trouble growing out of it, but the Secre- taries of the Treasury from the beginning cf resumption have pursued a policy of re- eming-in gold or silver at the option of the holder of the paper, and if any Secre- tary had afterward 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 he hed made that attempt at such a critical period as we have had in the last two ¥ judgment is it would have been ve trovs The Issue of Bonds. “I do not agree with the Secretary that it was wise to follow a bad precedent, but from his answer it will be seen that the tault does not lie with the greenbacks and treasury notes, but rather with the execu- tive officers who have seen fit to surren- der a right which should have been exer- .cised for the protection of the interests of the people. This executive action has al- ready been made the excuse for the Issue of more than $25,000,000 In bonds, and it is impossible to estimate the amount of bonds which may be hereafter issucd if this policy is continued. We are told that any attempt upon the part of the government at this time to redeem {ts obligations in silver would put a premium upon gold, but why should it? The Bank of France exercises the right to redeem all bank pa- per in elther gold or sliver, and yet France maintains the parity between goid and sil- ver at the ratio of 15%2 to 1 and retains in circulation more silver per capita than we do in the United States. “It may be further answered that our opponents have suggested no feasible plan for avoiding the dangers which they fear. The retirement of the greenbacks and treasury notes ‘would not protect the treas- ury, because the same policy which now leads the Secretary of the Treasury to re- dewn all government paper in gold, when gold is demanded, wiil require the redemp- tion of all silver dollars and silver_certiti- cates in gold if the greenbacks and treas- ury notes are withdrawn from circulation. More than this, if the government snould retire Its paper and throw upon the banks the necessity of furnishing coin redemp- tion, the banks could exercise the right to redeem its obligation in silver when sil- ver is more convenient, or it must retire all the silver and silver certificates from circulation and leave nothing but gold as legal tender money. Are our opponents willing to outline a financial system which will carry out their policy to its legitimate conclusion, or will they continue to cloak their designs in ambiguous phrases? Bullion Value of Silver. “There is an actual necessity for bimet- allism as well as a theoretical defense of it. During the last twenty-three years legislation has been creating an additional demand for gold, and this law-created de- mand has resulted in increasing the pur- chasing power of each ounce of gold. The restoration of bimetaliism in the United States will take away from gold just so much of its purchasing power as was add- ed to it by the demonetization of silver by the United States. The silver dollar is now held up to the gold dollar by legal tender laws, and not by redemption in gold, be- cause the standard silver dollars are not now redeemable in gold either in law or by administrative policy. “We contend that free and unlimited coinage by the United States alone will raise the bullion value of silver to its coinage value and thus make silver bullion worth $1.29 per ounce in gold throughout the world. This proposition is in keeping with natural laws, not in defiance of them. The best known law of commerce is the law of supply and demand. We recognize this law and build our argument upon it. We apply this law to money when we say that a reducticn in the volume of money will raise the purchasing power of the doi- lar. We also apply the law of supply and demand to silver when we say that a new demand for silver created by law will raise the price of silver bullion. Gold and Sliver Limited. “Gold and silver are different from other commodities in that they are limited in quantity. Corn, wheat, manufactured pro- ducts, ete., can be produced almost without limit, provided they can be sold at a price sufficient to stimulate production, but gold and silver are culled precious metals be- cause they are found, not produced. These metais have been the objects of anxious search as far back as history runs, yet according to Mr. Harvey's calculation, all the gold coin of the world can be melted into a 22-foot cube, ard ail the silver coin in the world into a 66-foot cube. Because wold and silver are limited, both in the quantity now in hand and in annual pro- duction, it follows that legislation can fix the ratio between them. “Any purchaser who stands ready to take the entire supply of any given article at a certain price can prevent that article from falling below that price. So the government can fix a price for gold and silver by creat- ing a demand greater than the supply. In- national bimetailists believe that several ations, by entering into an agreement to coin at a fixed ratio all the gold and silver presented, can maintain the bullion value of the metals at the mint ratio. When a mint price is thus established {t regulates the bullion price, because any person de- firing coin may have the bullion converte into coin at that price, and any person de- siring bullion can secure it by melting the he only question upon which interna- tiunal bimetallists and independent bimet- alllsts diifer is, can the United States, by the the for the sufi be iree and unlimited coinage of silver at present legal ratio, silver which, take demand already lent to. utilize all the presented at the mints eir defense of ibe bime nd they agree in unalterable oppositio: to the gold standard. Internitional bi- metallists cannot complain that free coin- age gi a benefit to the mine own be- cause international bimetallism gives to the owner of silver cll the advantages of- red by independent bimetallism at the me ratio. International bimetallists can- not accuse the advocates of free silver of being ‘bullion owners who desire to raise the value of their bullion,’ or ‘debtors who desire to pay their debts in cheap dol- lars, or ‘demagogues who desire to curry favor with the people” They must rest their opposition upon one ground only, namel That the supply of silver avail- able for nage is too large ta be utilized by the United States. Capacity of the United States to Use Silver. “In discussing this question we must consider the capacity of our people to use silver and ths quantity of sil which can come to our mints. It must be remem- bered that we live in a country only par- ually developed, and that our people far rpass any equal number of people in the world in their power to consume and pro- duce. Our extensive rallroad development and enormous iniernal ecommerce must al- so be taken into consideration. Now, how much silver can come here? Not the coin- ed silver of the world, because almost all of it Is more valuable at this time in cther lands than it will be at our mints under free coinage. If our minths are opened to free and unlimited coinage at the pres- ent ratio, merchandise silver cannot come here, because the labor applied to it has foods at wou reich in the form of mer- handise than it will be w. aaa be worth at our “We cannot even expect all of the annual product of silver, because India, China, Japan, Mexico and all the other silver-using countries must satisty their annual needs from the annual product; the arts will re- quire a large amount and the gold-standard countries will need a considerable quantity for subsidiary coinage. We will be required to coin only that which Is not needed eise- where; but if we stand ready to take and uuilize all of it other nations will be com- pelled to buy at the price which we fix. Many fear that the opening of our mints will be followed by an enormous increase in the annual production of silver. No Overproduction of Silver. “This is conjecture. Silver has been used as money for thousands of years, and dur- ing all of that time the world has never suffered from an overproduction. - “If, for any reason, the supply of gold or sHver In the future ever exceeds the re- quirements of the arts and the needs of commerce, we confidently hope that the in- telligence of the people will be suflicient to devise and enact any legislation necessary for the protection of the public. It is foily to refuse to the people the money which they now need for fear they may hereafter have more than they need. I am firmly convinced that by opening our mints to free and unlimited coinage at the present ratio we can create a demand for silver which will keep the price of silver bullion at $1.29 per ounce, measured by gold. “Some of our opponents attribute the fall in the value of silver, when measured by gold, to the fact that during the last quar- ter of a century the world’s supply of sil- ver has increased more rapidly than the world’s supply of gold. This argument is entirely answered by the fact that, during the last five years, the annual production of golii has increased more rapidly.than the annual production of silver. Since the gold price of silver has fallen more during the last flVe years than it ever fell in any previous five years In the history of the world, it is evident that the fail 1s not due to increased production.” Prices can be lov ered as effectually by decreasing the d mand for an article as by increasing th supply of it, and it seems certain that the fall in the gold price of silver is due to hostile legislation and not to natural laws. Gold Going Abroad. “Our oppongpts cannot !gnore the fact that gold is now going abroad in gpite of all legislation intended to prevent it, and no silver Is being coined to take its place. Not only is gold going abroad now, but it must continue to go abroad as long as the present financial policy is adhered to, unless we continue to borrow from across the ocean, and even then we simply postpone the evil, because the amount borrowed, together with interest upon it, must be repaid in appreciating dollars. “The American people now owe a large sum to European creditors, and falling prices have left a larger and larger margin between our net national income and our annual interest charge. There is only one way to stop the increasing flow of goid from our shores, and that is to stop falling prices. The restoration of bimetailism will Let only stop falling prices, but will, to some cxtent, restore prices by reducing the world’s demand. for gold. If it is a thai a rise in prices lessens t dollars which we pay to our reply that in the balancing of equities t American people have as much rir favor a financial s; will tain or restore prices as foreign have to insist upon a financial sys’ Will reduce prices. But the interests of so- ciety are far superior to the interests of either debtors ur creditors, and the interests of society demand a financial system whic! will add to the volume of ftand money of the world and thus restore bility to prices. The Charge of Repudiation. “Perhaps the most persistent misrepre- sentation that we have to meet is the charge that we are advocating the pay- ment of debts in S&-cent dollars. At the present time and under present laws a sil- ver dollar, when melted, loses nearly half its value, but that will not be true when we again establish a mint price for silver and leave no surplus silver upon the market to drag down the price of bullion. Under bi- metallism silver bullion will be wor: much as silver coin, just as g now worth as much as gold coin, believe that a silver dollar wiil be 4s much as a gold dollar. “The charge of repudiation comes with poor grace from those who are seeking to worth add to the weight of existing debts by leg- and islation which makes money dearer, who conceal their designs against the eral welfare under the euphontous pr that they are upholding public credit and national honor. “In an to the charge that gold will go abroad, it m: ed that no gold can leave this country until the owner of the gold receives something in return for it which he would rather have. In other words, when gold leaves the country | those who formerly owned it will ne- ress by whict be compelled to part with our gold « our will, nor is there any proc silver can be forced upon us with consent. Exchanges are matters of ment, and if silver comes to t under free coinage !t will be at the inv tion of some one in this country who will give something in exchange for it. Parlty of the Two Metal. “Those who deay the ability of the ea States to maintain the parity between gold and :ilver at the present legal ratio without foreign ald point to Mexico and as- sert that the opening of cur mints will re- duce us to a silver basis and raise gold toa premium. It is no reflection upon our sis- ter republic to remind our people that the United States is much greater than Mex- ico in area, in population and in commer- celal strength. It is absurd to assert that the United States is not able to do any- thing which Mexico has failed to accom- plish. The one thing necessary in order to maintain the parity is to furnish a de- mand great enough to utilize all the silver which will come to the mints. That Mex- ico has failed to do this fs no proof that the United States would also fail. “It is also argued that, since a number of the nations have demonetized silver, nothing can be dere until all of those ni tons restcre bimetallism. This is also f- logical. It 1s immaterial how many or how few nations have open mints, provided there ure sufficient open mints to furnish a monetary demand for all the gold and sil- ver available for ccinage. “Iu reply to the argument that improved machinery has lessened the cost of produc- Unit- ing silver, it is sufficient to say that the same is true of the production of gol, and yet, notwithstanding that, gold has r nin velue. As a matter of fact, the cost of production does not determine the value of the precious metals except as it may aftect the supply. If, for instance, the cost of producing gold should be reduced % per cent, without any increase in the output, the purchasing power of an ounce of gold would not fall. So long as there ts a mone- tary demand sufficient to take at a fixed mint price all the gold and silver produced. the cost of production need not be consid- ered. Prices of Gold and Silver. “It ts often objected that the pricer of gold and silver cannot be fixed in relation to each other, because of the varia:ion In the relative production of the metai his argument also overlooks the fact t if ui the demand for both metals at a fixed price is greater than the supply of both, roative production becomes immaterial. | in the early part of the present century the an- nual production of silver was worth, at the ccinage ratio, about three times as much as the annual production of gold; whereas, soon after 184 the annual production of gold became worth about three tims as much, at the coinage ratio, as the wnnual production of silver, and yet, owing to the maintenance of the bimetallic staicard, these enormous changes in relative produe- tion had but a slight effect upon the rela- tive values of the metal The Mine Owners’ Part. “If it is asserted by our opponenis that the free coinage of silver 1s intended only for the benefit of the mine owners, it must be remembered that free coinage cannot restore to the mine owners any more than demonetization took away, and it must a!so be remembered that the loss which the de- monctization of silver has brough: to the mine owners is insignificant compared to the loss which this policy has brought to the rest of the people. The restoration of silver will bring to the people gen: rally many times as much advar mine owners can obtain from it. Whi 1s not the purpose of free colaage to who belicve that the res‘oration of silver is needed by the whole people should not be deterred because an incidental benefit will come to the mine owner. Tho erection of forts, the deepening of harbore, ihe im- provement of rivers, the e on’ of public buildings—all these confer incidenial bene- fits upon individuals and communities, and yet these incidental benefits do not deter us from making appropriations for these purposes Whenever such appropriations ere necessary for the public good. “The argument that a silver dollar ts heavier than a gold dollar aud that, there- fore, silver is less conyventent to carry in large quantities is complet+ly answered by | the silver certificate, wnich is as easily car- ried as the gold cert or any ether kind of paper money. Objection to the Present Ratio. “There are some who, while admitting the benefits of bimet ain, object to the coinage at the present raio. If any are deceived by this , they ought to remember that t no biinciallists who are carnes any other posed to re lace e in ould n the result me because a chanze would pr because a ¢ try. A change AF effec 4, it we onan w i (Continued on Eleventh Page.)