The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-23
THE ERRORS OF A DISTINGUIsHED
LAWYER.

Elsewhere we publish this morning
letter from Mr.. w. Is. Petit, the distin-
guiehed lawyer OF Fluvanna county re-
viewing the statement recently made by
Secretary Carlisle. and reproduced by us,
regarding the way the silver dollar is
kept at "A parity with the gold dollar.
Mir. Petit is right In his criticism of Mr..
Carlisle to certain extent. From the
way the Secretary of the Treasury puts
bis case ii might be assumed that the
United States Government paid out gold
TO its army and navy officers, to the con-
tractors for it's warships. to its pension
ers and TO all its other creditors when
ever those creditors desired it. And pos
sibly 1t does this, though we have no
idea that IL does. It collects it's revenues
in greenbacks. sherman notes. silver
certificates. silver dollars and gold dol
lars; and though before the Sherman
law was passed, about eighty per cent.
of its revenues were paid it in gold or
gold certificates, since the passage of
that law IL has been paid practically in 10
gold 1t must pay out what it collects,
and We suppose. as a matter of course,
that IL makes its creditors take that or
nothing. without regard to what they may
desire. But we understood Mr.. Carlisle
I'm much narrower sense than Mr.. Pet
tit understands him. When he said the
Government paid gold to those who want
ed 1t. we supposed he referred 10 the
fact that II pays gold on demand for
all the greenbacks and Sherman notes
that are presented to It. and this is GER
tainly a most important part of the pro-
cedure by which gold and silver dollars
are kept at parity. IL this was not done
the parity between the two would soon
break down. never mind what else might
be done. To state the case accurately,
then land no doubt as Mr.. Carlisle had
it in his mind. the parity between the
two is maintained by the Governm mt
receiving the silver dollars in payment
OF all debts due TO it, and paying out
gold TO all those who demand gold for
it's demand notes This is the way il
is done and il is most expensive way,
that will break the Government in time,
though it were much richer than il is.
The fundamental error Of Mr.. Petuts
whole case is in his idea that the value
OF money comes from its being legal
tender in payment Of debt. That is a fun
damental error shared in by all the
Teople OF the United States who have
gone wrong on the financial issue, and
1t is at the bottom Of all their hereses.
Now. we don't want TO be misunder-
stood. We want 10 be distinctly under
stood Ak saying that it's quality of legal
tender has nothing whatever to do with
tho value or the currency of sound
money. and the only effect OF that quail
ity on sound money, II it has any effect
at all. Is TO n1ure II. Understand, we
do not deny that money must he legal
tender In payment of debt. ON the con
frary. we expressly affirm 1t. But that
legal tender quality has no sort Of part
In helping it TO perform It's ordinary
functions. Its use is this: Men fall out
about their rights and obligations. \
claims that owes him $2v0 while b
claims that he owes him only S1CO. So
ciety, through the laws. must provide
machinery 10y which the matter in dis
pute between them can be ended. This
provision Is the legal tender character OF
money. Is tenders a SlJJ OF legal tender
money. and \ refuses it. Now II az the
end OF the lawsuit \ brirGs against b il
turns out that 500 was all that b owed
A. II will have been in the right from the
moment he made the tender and \ viii
have been In the wrong. If any in
furious consequences have flowed out OF
the non-settlement OF the matter. the
responsibility for those consequences Will
rest upon \, and not upon Il. This is
che function of legal tender in money.
and this is it's sole function 1t: {. e.,
she mere legal tender quality, is utter
~ without value for commercial pur-
poses. but is most disastrous in its eff
feet IL II Is resorted 10 In commercial
transactions. II money is 10 be OF any
value whatever as an agency In commerce
IL must bs money that the creditor is as
willing 20 receive as the debtor Is 10 part
with H. The moment a debtor resorts
10 his legal authority TO force creditor
TO receive what that creditor does not
want. transactions between those two
como TO an end. IL money is TO perform