The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-12-02
Secretary CarIisIe's New York Speech

The present administration is fortunate
in having as the chief of its financial de-
partment so notable master OF the art
of clear exposition as Secretary Carlisle
has shown himself to be during the
course of the cam paign for sound finance
that has been in progress during the last
two years or more. His addresses on the
monetary question have bean powerful
aids to the movement for sounder cur
rency. and without doubt they have
gained in force from the very fact of tier
alton. Probably no more striking teSti-
mony to tine skill and power of the secre-
| tary's utterances could be forthcomin z
| than the enthusiastic reception accorded
| him at the banquet of the New York
| chamber of com merce on Tuesday even
ing last.
two years ago he had addressed the
chamber on n similar occasion, when he
SAID that the disposition of the govern
ment to maintain its own credit at the
highest standard and to preserve the in
tegrity of all forms of currency in circula-
ton among the people could not reason
ably Dc doubted, and ought not to be
made the subeicJ of further controversy.
While, however. he said. scarcely any
one now seriously dou BITS either the dis
position or the ability OF the executive
branch OF the government TO accomplish
these or jects, all who have given any
BltentlOU 10 lne subject ID uSt TedlIZe tUhl,
in tbs existing state OF our legislation,
the task Is both difficult and expensive.
Since that declaration nf his was made,
interest bearing bonds to the amount of
$162, 3l5, 400 have been issued to procure
gold for the redemption OF United States
notes and treasury notes, and the oDliga-
tions of the government on account
of the notes still remain the
same as at the beginning. The notes
have been redeemed, out they are unpaid,
and If our legislation is not changed. no
matter how often they may be presen ed
and redeemed hereafter. they will remain
unpaid. If this policy of redemption and
reissue is continued, the INTEREST," bearing
debt will be greatly increased, while the
Don-interest bearing debt will not be in
the least diminished. The government
is at a great lsadvantage, for the reason
that it has undertaken to keep an unlim-
tied amount of circulating nutes Ell Ial in
value to gold coin and, at the same time,
it has no legal authority to compel any
body to give it gold in exchange for the
notes. or to pay gold on any demand due
to it. The obligation is all on one side
and tho power is all in the other. AL
though the amount OF United States
notes is fixed at $346, 63l 900 ana the
amount of treasury notes outstanding is
little over $40, 600, 900, yet the total
amount that may be presented for re-
demption is unlimited because there is
no restriction as to the numDe OF times
the same note may be returned to the
treasury and exchanged for gold.
The difficulty, the secretary said, is not
with our legal standard of value, which
is as sound as that of any other country
in thu world, and if we had such cur
rencv system as would certainly Guaran-
tee its permanent maintenance, no gov.
eminent or people could command larg-
er credit or realize greater benefits from
49, . r
the worI realize the difficulties under
which we are laborinG, ana until these
dttculties dre removed we cannot hops
to see perfect confidence restored at home
aud abroad. The chief of these fiji.
cultics is of course, the existence OF
legal tender notes rcdeematlc in coin by
the government and reasonable under the
law. SO long. the secretary said.a these
notes are outstanding the slightest III
minution of the coin reserve authorized
by law TO- their redemption at once ex.
eites feeling o! apprehension and dis
trust in the public mind, affects the val
ues of all oui securities, curtails invest
ment. and more or less seriously embar-
rasses all the business affairs of the peo-
pie. How much has been lost to our lco.
pie on account OF unavoidable tiuctuation
in the reserve 1t is impossi BILE to state,
but all classes have stuff red more or less
from the effects of these fluctuations
upon the markets Of products, upon wages
and upon the values IF all kinds of prop
ety.. and consequently the condition of
that fu1d is subject of constant atten-
ton and anxiety throughout the country
With an Almost constant Drain upon it,
with frequent and sudden demands for
very large sums for boarding or for ex-
por nd with no certains means of re-
plenishing it, except by sales of bo.,ts.
1t is absolutely impossible to maInt.in
the rsaerse at any fixed amount, and
therefore impossible to keep the public
constantly assured of financial stability
ana s"lety.
No lack OF clearness or vigor marked
MI. Car!isle's suggestion as to the duty
OF congress and OF the political parties in