The times. [volume] (Richmond, Va.) 1890-1903, 1895-11-20
CARLISLE ON FINANCE.
HE SHOWS THE F4LLACf OF FhLh
COINAGE hND FIAT MONEY.
The Practical Working offhe Redemption
OF Notes-A Promise to Pay Is NOT
Money-Mr. CIcveIand's Regrets'

N'fN''t'r-'-"+--
Alexander f. Orr, president of the Cham
Der of Commerce. presided, ana around
him were seated, besides the speakers
Of the evening. Hon. Carl Schurz, Rear
Admiral Henry ErDen. Mayor Strong,
Hon. Hilary a. Herbert, Hon. Judson
~ Harmon, General thomas II. kuser
Commander Montgomery. James y. Con-
stable, William If. webb, Calvin D.
Brice General Horace Porter. edward
simmons, John Jacob Aston. and James
q. Cannon.
The meeting was called 10 order by
President Orr, who introduced the Hon.
John u. Carlisle, Secretary OF the Treas
ury, who spoke Oh the currency question
as follows.
SiR. CARLlSLE's SPEECH.
Two years ago j said to you that the
disposition and ability OF Tie Government
to maintain its own credit at the highest
standard, and TO prove the integrity OF
All the forms of currency in circulation
among the people could not be reasonably
doubted. and ought not 10 be the subject
Of further controversy. While scarcely
any one now seriously doubts either the
deposition or the ability Of the execu-
tive hidltU pl the 1ONtIiliNNul ~ d~'tAH-
pish these objects. ali VINO have given
any attention to the subject must realize
that in the existing state Of our lesls-
lation, the task is both difficult aud eN-
pensiyc. Since that declaration was
made here. Understanding bonds TO the
amount Of Sl62 3l5.iC have been issued 10
procure gold for the redemption OF United
states notes and Treasury notes, and tho
obligations of the Government on account
l.. a. 1T
the beginning.
The notes are redeemed, but they are
unyaid. and n our Legislation Is not
changed no matter how often they may
bc presented and redeemed hereafter, they
will remain unpaid. II this policy of re-
demptiOn ana reissue Is continued tie
interest-bearing debt will be greatly In
creased, while the nOn-interest-D bearing |
debt will not be- IN the least diminished. !
The disadvantages of such Il system are so
obvious that II Is hardly necessary TO
enumerate them. The Government has !
undertaken TO keep an unlimited amount !
OF circulating notes equal in value TO
gold coin, and at the same time IL has no
legal authority 10 compel ANYBODY 10 give |
gold in exchange for the notes or To pay |
gold on any demand due TO IT.
AN ENDLESS CHAIN.
Although the amount Of United states
notes Is nXei al $40. Soi,os9 ana the amount
OF treasury notes standing Is lltue over
S1D.GRVp, the total amount that may be
presented for redemption IL uunmitea, be-
cause there IS no restriction as 10 Inc
NUMBER of times the same note may he
returned 10 uhe Treasury and exchanged
FOR gold. The Fundamental wee ~ cur
rency system IS the i,sal-tend note re-
deemaOe m com by the Government ana
reasonable under the law. his threatens
the STABILITY OF the whole volume OF our
currency ana has caused immense losses
boy fluctuations, Of which it is lmpOsSivie
to keep the public aware. ~
Government should convert Itself INTO
q bank Of issue The Treasury De
partnent Is simply a public agency Tor
The MANAGEMENT of the fiscal affairs OF
the Government. Tho circulation Of
legal tender United States notes ana
treasury notes has tendency 10 uilve
out OF use. and out OF the country, the
very coin in which the Government IS
compelled to redeem them, and A. has
expelled millions OF dollars from our
borders No other Government IN the
world IS required 10 supply gold from us
treasury 20 discharge the private opHea-
lions OF its citizens. and no Goyewmeht
ought 10 be required 10 DO so. The fact
that the Government IL required 10 Dor
row money is an injury 10 It's credit ana
the credit Of it, people, but the injury
resulting from this cause Is inslsnihcdnt
in comparison with the ruin that would
follow an abandonment OF the reserve
while the notes are outstanding for All
our currency would thus bee reduced 10
the silver standard
FREE-COINAGE FALLACY.
.sfhe theories that tie Government
can create money by placing its stamp
upon paper. that a legislative enactment
can make nifty cents equal to one hundred
centst that artticially inflated prices,
paid m deprecated currency, are bet
ter for the people. that natural prices,
paid I'm sound currency, and various other
yagaries, are all directly attributable
10 the lOng-cOntinued use OF legal tender
paper. The proposition that promise
Of the Government TO pay money IL just
as absurd as the proposition that d
promise to deliver a horse is a horse.
The agitation for the rec coinage of
lIal-tenGer silver at a raIlO which would
put only nifty cents worth OF bullion In
a silver dollar is predicated upon the
same vicious principe. the United states
was forced 10 loan from the people 20
the Government. which the Government
promises to repay IN dollars, but the free
coinage OF legal-tenGcr silver at the ratio
OF Is TO /, OF az any other ratio not cor
responding with the commercial value of
the two metals would be- Il forced loan
from the people to the owners Of silver
miles, and silver bullion without a prom
Use of repayment by anybody. one loan
was forced for me benefit OF the Govern
OF the advocates OF free coinage Is 10
force another loan FOR the benefit of
private individuals and corporations, in
a time OF profound peace
"In principle the two measures are
precisely alike. The free coinage OF legal
tender silver would Dee FAR more I'M
INST than the issue Of legal
tender United States notes. However. IL
is not my purpose now 10 discuss the
question of free coinage. / think the
abandonment or Suspension of the dg-
grcssiye movement against this financial
hereSv would be more than unWise at
this time especially IN view of the fact
that . concerted effort is evidently now
being made I'm the South and West 10
regain the ground lost during the last
six months
III the friends Of a sound money are
vigiiant the effort cannot possibly sue
coed. But the legal tender notes will
ROMAN to cOmplicate the currency sys-
tenn until Congress agrees 10 their retire
ment and substitution OF others In their
place This legislation is Imperative
~ demanded as Il concerns the welfare OF
all the people.
The speaker closed with hope that the
POLITICAL platforms OF both the great par
ties would Ienceforth be clear ana un-
equivccal
.If a majority of the people Of the
United States are I'm favor of the mainte-
nance of the present standard or Fsi-e
and opposed 10 the free and6 unlimitgl
coinage Of legal-tender silver, they ought
TO have an opportunity TO say 50 IN a
form which will preclude all controversy
as TO whether they have said 60 or not
On the other hand, IL a majority Of our
people are in favor OF ABANDONING the
present standard OF value and establish
ing silver recommendation by the free alI
unlimited coinage OF that metal int inii