The Providence news. (Providence [R.I.]) 1891-1906, 1895-11-22
CARLISLE ON MONEY.
HIS SPEECH BEFORE THE NEW YORK
CHAMBER OF COMMERCE.
The Secretary Of tho Treasury Condemns
Our Present Monetary system and Makes
n Strong Plea For Sound Money"

J. ri tNH -
n strong Plea For .'sound Money"
Mr.. PRESIDENT n GENTLEMEN-Two
years ago l had the honor To attend your
annual banquet and 10 make some re-
marks. i'm the course of which l said that
the disposition and ability Of tho govern
mcnt 10 maintain its own credit at tho
highest standard and to preserve the in
tegrity OF all the forms OF currency In cir
c~ulation an : tho people could not be
reasonably = ibted and ought not TO be
tho subject OF further controversy. While
scarcely any one now seriously doubt
either the disposition or the ability Of the
executive branch Of the government TO ac-
complish these objects, all who have given
any attention 10 the subject must realize
thai in the existing state Of our legisla-
ton the task Is both difficult n expen.
siye. Since that declaration was made
here interest bearing bonds 20 the amount
Of size, 315, 400 have been issued to procure
gold for the redemption of United states
notes and treasury notes, and the obliga-
tions OF the government on account OF the
notes still remain tho Same MS at tho
beginning. The notes arc redeemed, but
they arc unpaid, and IL our legislation Is
not changed no matter how often they
may DC DTtStDIcu anu Ituttilltu ntItltlhtI
they will remain unpaid. IL this policy
of redemption and reissue Is continued,
the interest bearing debt will be greatly
increased, while the noninterest bearing
debt will not be in the least diminished.
The disadvantages OF such n system are
so obvious that 1t Is hardly necessary TO
cnumcrate them. The government has
undertaken to keep an unlimited moun
Of circulating notes equal in value to gold
coin, and at the same time IL has nc legal
authority to compel anybody to give 1t
gold In exchange for the notes or to pay
gold on any demand due to IL. The obliga-
ton is all on one side, and the power Is all
on the other. Although the amount of
United States notes Is fixed at s346, 6s1,-
900, and the amount of treasury notes out
standing Is q little over S140, 900, 900, yet
the total amount that may be presented
for redemption Ii unlimited, because there
Is no restriction as TO the number of times
the same note may be returned to the
treasury and exchanged for gold. Our
legal standard of value Is as sound as that
Of any country in the world, and IL we
had such a currency system rs would GER
tainly guarantee its permanent mainte-
nance no government or people would COM
mand q larger credit or realize greater
benefits from 10 than ours. But the great
investors of the world appreciate the diff
culties under which we are laboring, and
until those difficulties are removes we
cannot reasonably hope TO see perfect con-
fidence restored at home or abroad.
Every student of monetary science and
every practical man of business knows
that the fundamental vice in our currency
system is the legal tender note redeemable
in coin by the government and reasonable
under the law. There are other defects,
but this Is II fundamental and radical and
threatens the stability of the whole volume
Of our currency. So long as these notes
are outstanding the slightest ~diminution
Of the coin reserve authorized by law for
their redemption Mt once excites n feeling
Of apprehension and distrust I'm the public
mind, Affects the values Of all our securi-
ties, curtails investments N more or less
seriously embarrasses all the business af-
fairs of the people. How much has been
lost TO u people On account Of unavoid-
able fluctuations In the reserve IL Is i'm
possible TO state, but all classes have suf-
fcrcd more or less from the effects of these
fluctuations upon the markets forproducts,
upon wages and upon the values of all
kinds OF property, and consequently the
VI tAot tat III % GhbJttt vi OOh
slant attention and anxiety throughout
the country. With an almost constant
drain upon 1t, with frequent and sudden
demands for very large sums for boarding
or for export, and with no certain means
Of replenishing 1t, except by sales of bonds,
II IL absolutely impossible to maintain the
reserve at any fixed amount and therefore
impossible to keep the public constantly
assured Of financial stability and safety.
In attempting TO provide a circulating
medium consisting of its own notes re-
deemable in coin IN presentation and re-
issuable after redemption the government
Of the United States is engaged in a bust
ness for which " IL wholly untitled, and
which was never for n moment contem-
plated by its founders. IL has n right 10
borrow money and issue evidences OF the
debt, and IL has a right 20 coin money and
regulate its value-thati is, 10 declare what
the relative values of the metals shall DO
in the ~coinage-but IL was never contem-
plated h a IL should convert itself into n
bank of issue and furnish a legal tender
paper currency for the use of the people.
1t has no department or agency properly
organized or equipped for the transaction
Of such business, even IL this were a legiti-
mate governmental function. The treas
ury department ought to he and was in.
tended TO be simply a public agency for
the management Of the flscal affairs of the
government-as n government, not n bank
for the collection and disbursement of
the public revenue for public purposes
and for the supervision and control of such
other executive matters as might no in
trusted to IL by law IL is clothed with
proper authority for these purposes. but IL
Is not clothed with proper authority To
conduct a banking business, and the Ion
ger 1t il required to conduct such a business
the greater will be the injury 20 the gov
ernment and TO the people. No change
that can be made in our currency system
will afford the relief to which the govern
ment and the people are entitled unless IL
provides for the retirement and cancella-
tion of the legal tender United states
notes. Anything less than this will be
simply n palliative and not a cure for the
financial ills to which the country is now
subject.
Tie circulation Of legal tender United
States notes and treasury notes has a
t.pd..rxs a.. .lwtsa. 49, 80. -. a.