Birmingham state herald., 1895-11-20
MIR CARuSLE'S SPEECH Delivered at the Chamber of
 Commerce Dinner.
 
HE MENTIONS HIS TROUBLES
And Asks That Greenbacks Be Substituted for
 Interest Bearing Bonds.
AN uNEQUHocAL PLATFORM WANTED
to Express Their Wishes Cleveland Alludes to the Freq Silver Move ment as Financial Madness.

New York, Nov. 19-The chamber of commerce held it's l27th annual banquet tonight at Delmonico's. The banquet hall was decorated with stars and stripes and the greatest enthusiasm prevailed. Alexander b. Orr, president of the cham Der of commerce, presided, and around him were seated besides the speakers of the evening Hon. Carl Schurz, Rear Ad- miral Henry Erben, Mayor Strong, Hon. Hilary A. Herbert, Hon. Judge Harmon. Gen. Thomas H. Ruger, Commander Montgomery Card, J. N. Constable. w. H. Webb, Calvin s. Brice, Gen Horace Porter J. Edward Simmons. John Jacob Astor and James G. Cannon. The meet ing was called to order by President Orr, who introduced the Hon. John G. Car llsle, secretary of the treasury, who spoke on ''our currency questions" as follows:
 Two years ago I said 10 you that the disposition and ability of the govern ment to maintain its own credit al the highest standard and to preserve the integrity of all the forms of currency in circulatio among the people could not be reasonably doubted and ought not to be the subject of further controversy. While scarcely any one now seriously doubts either the disposition or the abil- ity of the executive branch of the gov ernment to accomplish these objects, all who have given any attention to the subject must realize that in the exist ing state of our constitution the task is both difficult and expensive. Since the declaration was made here interest bearing bonds to the amount of $142, ,315,- 400 have been issued to procure gold for the redemption of the United States notes and treasury notes. and the obli- gations of the government account of the notes still remain the same as al he beginning. The notes are redeemed, but they are unpaid, and if our constitution is not changed no matter how often they bt paid and redeemed hereafter, they will remain unpaid. If this policy of re- demption and reissue is continued the interest bearing debt will be greatly in- creased, while the non-interest bearing debt will not be in the least diminished. The disadvantages of such system are so obvious that it 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 1t 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.
 Although the amount of United States notes is fixed at $S46, ,6S1 ,000 and the
 
 a little over $14OO00000. yet the total amount that may be presented for re- demption is 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 The fundamental vice in our currency system is the legal tender note. redeemable in coin by the government and reissuable under the law. This threatens the stabil- ity of the whole volume of our currency a nd ha aaf nd sr,,,, 1xxva tuations. of which it is impossible to keep the public aware. It 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 finan- cial affairs of the government. The cir culation 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 it has ex- pelled millions of dollars from our bor- ders. No other government in the world is required to supply gold from it's treas ury to discharge the private obligations of it's citizens. and no government ought to be required to do so. The fact that the government is required to borrow money is an injury to its credit and the credit of it's people; but the injury resulting from this cause is insignificant in comparison with the ruin that would follow an aban-
 
 are outstanding; for all of our currency would thus be reduced to the silver standard. The theories that the gov- ernment can create money by placing it's stamp upon paper; that legislative en- actment can make 50 cents equal to TOO cents; that artifcially inflated prices paid in a depreciated currency. are bet ter for the people than natural prices. paid in sound currency: and various other vagueries are all directly attributa- h hln to thn Ano onx.ft 70 tender paper money.
 "The proposition that a promise of the government to pay money as money Is just as absurd as the proposition that promise to deliver a. horse Is a horse. The agitation of the free coinage of legal tender silver at a ratio which would put only 50 cents worth of bullion in silver dollar is predicated upon the same vicious principle. The United States note was forced loan from the people to the government. which the govern ment promises to repay in dollars. but the free coinage of silver at the ratio of 16 to or at any other ratio not correspond ing with the commercial value of the two metals would be a forced loan from the people to the owners of silver mines and silver bullion without a promise of repayment by anybody. One loan was forced for the benefit of the government in 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 time of profound peace. In principle the two meas sures are precisely alike.
 '"rhe free coinage of legal tender silver would be far more unjust than the issue of legal tender United States notes. However, 1t is not my purpose now to discuss the question of free coinage I think the abandonment or suspension of the aggressive movement against this financial heresy would be most unwise at this time especially in view of the fact that a concerted effort Is evidently now being made in the south and west to re- gain the greater lost during the last six months. If the friends of a sound measure of value are vigilant this effort cannnt nnssihlY succeed.