The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-11-20
CARLISLE ON OUR CURRENCY.
LEGAL TENDER NOTES THE BANE
OF THE PRESENT SYSTEM.

rency, However, Constantly Men-
aced by the LEGAL Tenders.
New York. Nov. 1e-The chamber OF
/ commerce held its I-5th annual banquet
/ tonight at Delmonicf's. The banquet hall
was decorated with lie stars and stripes
/ and the greatest enthusiasm prevailed.
/ Alexander T. Orr, president of the cham
| Der of commerce presided. and around
( him We're seated besides the speakers OF
/ the evening. Hon. Calr SChurz Rear Ad-
miral Henry Erben, Mayor Strong, Hon.
! Hillary A. Herbert lion. Judson Harmon,
/ Cen. Thomas H. Rueer, Commander Mont
/ gomery Sicard, james n. Constable,
/ William H. Webb. Calvin S. Brice. Gen.
/ Horace Porter, ]. Edward Simmons, John
Jacob Astor and James c. Cannon. The
meeting was called 10 order by President
orr. who introduced the Hon John G.
| Carlisle Secretary o. the Treasury, who
spoke on "Our Currency Question"
He said Two years ago said TO you
that the disposition and ability Of the
| government TO mai-4;ain its own credit
at the highest stan, ird, and to preserve
rency in circulation among the people.
I could not be reasonably doubted, ana
ought not to be the subject of further
discussion. While s Tcely any one now
] seriously doubts efiAer the dispostior
or the ability of e. executive branch
| Of the government ~ accomplish these
| objects, all who hayl given any atten-
| ton to the subject ,ust realize that in
the existing state OF our legislation, the
task Is both difficult ad expensive. Since
/ the declaration was inade here interest
| bearing bonds to the amount of Sl62,3l5,-
400 nave been issued o procure gold for
| the redemption of United States and treas
/ ury notes, and the obligations Of the gov
/ ernment on account Of the notes still
| remain the same as at the beginning
| The notes TpIpCmpI klff thew "a
paid, and IL our legislation is not changed
no matter how often they may be pre-.
sented and redeemed hereafter, they viii
remain unpaid. If this policy Of redemp-
ton and REISSUE is continued, and inser-
est.bearing debt will be greatly increased,
While the MISUNDERSTANDING debt viii
not be in the least diminished The dis
advantages of such n system are so OBJ
vious that it is hardly necessary to enum-
crate them. The government has UNDER
taken to keep an unlimited amount o.
circulating notes equal in value to gold
coin, and, at the same time, it has no
legal authority 70 compel anybody TO
give it gold in exchange for the notes or
TO pay gold on any demand due to IL.
notes is fixed at $346, So, 900, and the amount
| OF treasury notes outstanding - a little
over $li0 600, 600, yet the total amount that
may be presented for redemption is unlm-
tied, because there is no restriction as 10
the number of times the same note may
be returned to the treasury and exchang-
THE fundamental viee in our currency
system Is the legal tender note redeem
able in coin by the government, and reis-
, suable under the law. This threatens the
| stability of the whole volume of our cur
rency and has caused immense losses bv
fluctuations of which it is impossible to
: keep the public aware. 1t was never con-
templated that the government should
convert Itself into bank of issue The
treasury department is simply a public
agency for the management Of the fiscal
affairs of the government.
THE circulation Of legal tender United
States notes and treasury notes has a
tendency to drive out of use and out OF
the country the very coin in which the
government is compelled to redeem them:
and ii has expelled millions of dollars
from our borders. No other government
from its treasury to discharge the pr
Vate obligations of its citizens. and no
, government ought to be required to do
so. The fact that the government is re-
quired TO borrow money, is an injury to
! ! its credit and the credit of its people, but
! the injury resulting from this cause Is
( Insignificant in comparison with the ruin
that would follow an abandonment of
the reserve while the notes are outstand-
ing, for all our currency would thus be
reduced to the silver standard
The theories that the government can
create money by placing its stamp upon
paper; that a legislative enactment can
make 80 cents equal to 100 cents; that
ruinously inflated prices paid in a de-
preciated currency, are better for the
| people than natural prices, paid i'm a
sound currency, and various other yaga-
Ties table are tbs all slreGtly attrb
of legal tender paper. The
, proposition that promise OF the govern
ment to pay money is money, is just as
t absurd as the proposition that promise
to deliver a horse is a horse.
1.-The agitation for the free coinage of
put only so cents worth Of bullion in a
: silver dollar is predicated upon the same
J vicious principle, The United States
to the government, which the govern
ment promises to repay In dollars, but
at the ratio of 16 to I, or at any other ra-
tio not corresponding with the CONNER
cial value OF the two metals, would be a
e forced loan from the people to the own
r ers of the silver mines and silver bullion
Z without "A promise Of repayment by any
body One loan was forced for the benefit
of the government, in a time of war,
} but the proposition of the advocates of
= free coinage is TO force another loan for
! the benefit of private individuals and
: corporations in a time of profound peace.
In principle, the two measures are pre-
cisely alike.
''The free coinage Of legal tender silver
would be far more questionable than the
issue of legal tender United States notes.
, However, it is not my purpose now to dis
cuss the question of free coinage. think
the abandonment or suspension of the az
gressive movement against this financial
heresy would be most unwise at this
= time, especially IN view of the fact that
e the concerted effort is evidently now being
made in the south and west to regain
. the ground lost during the last six
months. If the friends Of a sound meas
t ure of value are vigilant this effort can
= not possibly succeed: But the legal ten
- der notes will remain to cOmplicate the
- currency system until congress agrees to
( their retirement and the substitution of
1 others in their places This legislation Is
4 | imperatively demanded, as It concerns
E the welfare on all the people"
- Referring to the producer and consumer
I the secretary said Neither the cotton
: of the south or the wheat of the west
= would be worth very much If there were
no railroads to carry It. or no merchaTlts
or bankers to supply the means for its
transfer from one place to another.
THE merchant and banker cannot pros.
per when the farmer and mechanics are
Idle or only partially employed nor car
the farmer or mechanic prosper when the
operations OF the merchant and banker arf
prohibited or improperly obstruefed ~
nation can reasonably hope to control the
trade Of any considerable part Of me
= world. or even TO realize the full bene.
' fits Of It's own trade, unless It's exchange
are based on a standard Of value recog.
nized as sound and permanent in all tRe
2 centers Of commerce