The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1891-06-06
FAIRCHILD ON THE CURRENCY,
The Country Should Have as Much
Silver as Is Needed.
From Providence Journal May Is.

From BrONldence JOuIllhl AnS H.
The Young Mems Democratic Club Of
this city gave complimentary banquet
last evening to Hon. Charles 5. Fairchild,
Secretary of the Treasury under Cleve-
lands Administration. They had invited
him to thi. city to enlighten them upon
the silver question.
Ex-Secretary Fairchild was accorded an
ovation upon rising. His subject was
SILVER and the Currency" During the
course of one honr and half he presented
a most lucid exposition Of the currency
question and its relation 10 the silver bill.
1t was placed before his audience in such
A manner that one who might previously
have given no attention to the question
could obtain clear knowledge Of its great
importance to the common veal.
Mr. Ea:rchild first described the iunc-
tons OF a currency \ circulating me-
dunn, he said, is not property in any sense
that land. houses, food and clothes are, it
is only useful to assist in the exchange Of
snch property. Settles the balances, in our
modern business, at the time when settle
meDts are desired of the transactions that
have arisen out of exchanges of property.
Therefore it is Il measure: measure OF
transactions. For 80 years the world has
measured its transactions by pound sterl-
inc. which is not coin, but weight in
gold. In legislation, no choice OF mankind
can move the world from that measure un-
less it will adopt another measure equally
fixed. IF this was not the case the world
would be unable to transact business ex-
cept by barter. All of our business trans
actions. all of South America, Europe,
Asia, Mexico, in fact of the whole world,
are measured by that pound sterling.
This pound sterling also measures every
other kind of circulating medium the
world over, whether it be silver, copper or
paper And every kind of circulating
medium which in its value differs from
that is quoted under one set of figures or
another.
We have in this country as circulating
mediums gold, gold certificates, silver dol
lars, silver certificates, and The new coin
certificates issued in payment for the silver
bullion the Treasury buys per day. Then
there are the national bank notes, in cur
rency of the United States. Then there
is the old greenback, the money of the
war. There is S100, 000, 900 in the Treas
ury to pay off these greenbacks, and for no
other purpose The statement of the
Secretary of the Treasury, made a few days
ago, that the S100,000,000 was in the
Treasury for the general credit of the
H.. ,rnlI
which the Treasury keeps there is to en-
able it to do banking business to the sat
isfaction of the people of the United States.
The Secretary of the Treasury also said
that no one could get sufficient greenbacks
together to get 10000, 900 out of the
Treasury, and therefore none of it is paid
out. The fact is the Government is con-
stantly buying these greenbacks in, and
Immediately reissuing them according to
law.
Besides the mediums before mentioned,
there are the subsidiary silver coins, which
have less silver in them than the proper
ton they bear to the dollar. Then there
are the minor coins. All these coins are
exchangeable and interchangeable and of
equal value throughout the United States
Why will man give you dollar for IA
hundred cents, or four quarters, or ten
dimes Because there is law on the
statute books which makes the subsidiary
coins demand obligation against the
United States, redeemable in full legal ten
der and ultimately redeemable in gold.
There were yesterday $4,000, 600 of sub
sidiary coin in the Treasury which have
been redeemed by the United States. The
national bank note, the greenbacks and
coin certificates retain their face value be-
cause the holder of every one believes he
can get the worlds coin for it when he
presents it. The same is true of the silver
certificate and the silver dollar.
Is it advisable to continue this condition
of things, this basis which is so certain that
no one ever looks at what kind of currency
he is putting into his pocket book ? 1t is
advisable in order that We may maintain
and retain our measure, in order that we
may know when we make contract what
we are to receive by that contract. Above
all things, this certainty is the most i'm
portant thing about circulating medium;
all other things about it are unimportant
compared. Can this certainty be disturb
ed? We have found that it can be. In
1861 there were about S300,000,000 of
gold and silver in the United States. The
Government issued greenbacks to the ex-
tent of 10000, 900; and in few days
every bit of gold and silver was out of sight.
1t was not until 1879 that we got back to
the certainty that was lost when the green
backs were issued.
Can his certainty be disturbed by silver?
In Mexico there is silver basis, and one
of its silver dollars is not worth one cent
more than the bullion in it. Its value
varies up and down, and the busine :
Mexico is based upon constantly chang
ing rate of exchange The United States
contains circulating medium Of $780,
100000 on par with gold, because it has
established the practice and belief of being
able to exchange its currency at its gold
value.
Can the United States maintain this sill
yer currency to an unlimited extent?
To what extent, do not know; neither
does anyone know; it is matter of exper-
iment. The moment the people get more
of the silver dollars and certificates than
they wish to use in their business, the sur
plus will be presented to the Treasury for
redemption. The moment the people find
that the Government cannot or will not
redeem it, it will sink to its bullion
value, as in Mexico. Heretofore the
Government has received the silver dollars
and certificates for Government dues,
and thus they have been redeemed.
The Treasury has stood in the position of
taking from the public creditor what he
wished to give, and paying him in what
ever form Of circulating medium he de-
sired to take By that means, the circu-
lating medium least wanted or desired by