The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1895-11-30
SATURDAY. NOVEMBER 80, 1885,
CARLISLE ON CURRENCY

3 u
Secretary of the Treasury Carlisle
was the principal speaker at the an
nua1 banquet of the New York cham,
Der of commerce last week. His SUBJ
ject was "Our Currency System" and
in the course OF his remarks he pointed
out many of the weak points OF our
bunglesoine system OF finance. In ex-
planation of the issue OF Sl62.3l5, ,4OO
interest bearing bonds during his in
cumbency of Office for the purpose OF
maintaining the redemption OF United
States notes, he said:
sThe fundamental vice in our cur
rency system is the legal-tender note
aedeemable in coin, by the govern
ment and re-issuable under the law.
There are other defects, but this
threatens the stability of the whole
volume OF our currency. So long as
these notes are outstanding. the slight
est diminution of the coin reserve ex-
cites feeling of apprehension and
distrust, affects the values of securi-
ties, curtails investments and more or
less embarrasses theb usiness affairs OF
the whole people. In attempting to
provide circulating medium consist
ing of its own notes redeemable in
coin on presentation, and re-issuable
after redemption, the government OF
the United States is engaged in busi-
ness for which it is wholly untitled
and which was never for moment
Contemplated by its founders. 1t has
right to borrow money and issue evil
dence of debt, but it was never con-
templated that it should convert itself
into bank of issue, and furnish legal
tender paper currency for the use OF
the people. The treasury department
ought to be and was intended to be
simply public agency for the manage
ment of fiscal affairs of the govern
ment, as a government, not as bank.
No change in the currency system will
afford relief unless it provides for the
retirement of the legal tenders.
ssThe circulation of legal tenders has
tendency to drive out of use and out
of the country the very coin in which
the government is compelled to re-
deem them. And it has expelled mil
lions of dollars from our borders. AL
though the government and our own
people are compelled to receive them,
they will not discharge international
obligations and gold must go out to
settle all final balances against us. No
other government in the world is re-
quired to supply gold from its treasury
to discharge the private obligations OF
its citizens.
"While the pecuniary loss to which
the people have been subjected by the
issue and continued circulation of legal
tender paper has been almost incalcul-
able, this has not been the chief injury
inflicted on. our country. Theories
that the governments can create money
by placing its stamp upon paper or
other materials; that a legislative en-
actnent can make so cents equal in
value to 100 cents; that artificially in
flated prices aid in deprecated cur
rency are better for the people than
natural prices paid in sound cur
rency, and various other vagaries now
floating like bubbles in the political
atmosphere, are all attributable to the
long continued use of legal tender
paper"
In discussing the question of Issuing
fiat money, Mr.. Carlisle made this
statement:
"The proposition that a promise OF
the government to pay money is money
is just as absurd as the proposition
that promise to deliver horse is a
horse, and yet there are eminent men
high in public councils, who believe
that the United States promissory |
note is actual money, and the statute
which compeis all people to accept it
as actual money is constitutional
enough to be continued in force. The |
agitation of free coinage of legal ten
der silver is predicated on the same |
vicious principle that underlies the
legislation making paper promises a
legal tender, but there is practical
difference between the two systems.
The United States note was forced |
idan from the people to the govern
ment, which the government promised |
to repay in dollars; but the free coin
age of legal tender silver at the ratio |
of 16 to would be a forced loan from
the people to the owners of the silver |
mines and silver bullion without a
promise of repayment by anybody"
His closing remarks were strong and
emphatic, still in such simple language |
that his position could not be misun-
derstood. He said:
"The campaign against the PROPOSE
tion to debase our standard of value |
should not he abandoned or suspended.
If the friends of sound and stable
measure of value are vigilant and act
i've, this effort cannot possibly succeed,
and the question will soon recede from
public view. But the Unieed States
legal tender notes will remain to com.
plicate the currency system and en-
barrass the government. Vague and
indefinite declarations by the great
political organizations of the country
not only increase doubt and distress
abroad, but encourage harmful agita-
lion at home, and 1 hold, therefore,
that it is the duty of all who may be-
come in any way responsible for the
Welfare of the country to insist that
here shall be no further equivocation
DR. evasion in our treatment of this
subject. Let us have no more ambig-
ious phrases. no more inconsistent
ind irreconcilable clauses in party
platforms or in public utterances, but
ct us make our meaning so clear. and
,ur purpose so plain that they can
neither be misunderstood nor success
ully misinterpreted." )" l.
WHAT WILL THE POLICY BE?