The citizen., 1895-11-29
CARLISLE ON Finance
Addresses the New York
Chamber of Commerce.
He Says Greenbacks Must Go, But
Refrains from Defining the Best
Future Currency Policy-Points
Out What the Pound Sterling Has
Done for London.

Out w nat the round sterling has
Done for London.
New York, Nov. 20.-The chamber of
commerce held its one hundred and
twenty-seventh annual banquet last
night at Delmonicos. The banquet
hall was decorated with the stars and
stripes, and the greatest enthusiasm
prevailed. Alexander L. Orr, president
of the chamber of commerce. presided,
and around him were seated. besides
the speakers of the evening, Hon.
Carl Schurz, Rear-Admiral Henry Err
ben, Mayor Strong, Hon. Hilary \.
Herbert, Hon. Judson Harmon, Gen.
Thomas II. Ruger, Commander Mont
gomery Sieard, James \. Constable,
William II. Webb, Calvin 5. Brice,
General Horace Porter, j. Edward
Simmons, John Jacob Astor and James
q. Cannon. The meeting was called to
order by President Orr, who spoke at
considerable length and closed with an
appeal for funds TO aid the sufferers in
Armenia. He then introduced the
Hon. John G. Carlisle, the secretary of
the treasury, WHO spoke on "Our Cur
rencv Question" He said in part:
Points Out Danger.
"rwo years ago | had the honor to
attend your annual banquet and to
make some remarks, in the course of
which l said that the disposition and
ability of the government to maintain
its own credit at the highest standard.
and to preserve the integrity of all
the forms of currency in circulation
among the people, could not be reason
ably doubted and ought not to be the
subject of further controversy Since
that declarat sion was made here, inter-
est bearing bonds to the amount of
Sl62, 315, 400 have been issued to procure
gold for the redemption of United
States notes and treasury notes, and
the obligations of the government on
account of the notes still remain the
same as at the beginning. The notes
are redeemed, but they are unpaid, and
if our legislation is not changed, no
matter how often they may be pre-
sented 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 non-interest bear
ing debt will not be in the least di-
minished.
The Fundamental Vice.
Every student of monetary science
and every practical man of business
knows that the fundamental vice in
our currency Gstem is the legal tender
note, redeeable in coin by the govern
ment and reasonable under the law.
So long as these notes are outstanding
the slightest diminution of the coin re-
serve authorized by law for their re-
demption at once excites a feeling of
apprehension and distrust in the pub
liz mind, affects the values of all our
securities, curtails investments, and
more or less seriously embarrasses all
the business affairs of the people.
Says Grcenbacks Must Go.
''In attempting to provide circu-
lating medium consisting of its own
notes, redeemable in coin on presenta-
tion, and reissuable after redemption,
the government of the United States is
engaged in business for which it is
wholly untitled, and which was never
for a moment contemplated by its
founders. 1t has a right to borrow
money and issue evidences OF the debt.
and it has a right to coin money and
regulate its value-that is. to declare
what the relative values of the metals
shall be in the coinage-but it was
never contemplated that it should con-
convert itself into bank of issue and
furnish legal tender paper currency
for the use of the people, and the
longer it is required to conduct such a
business the greater viii be the injury
to the government and to the people.
No change that can be made in our
currency system will afford the relief
to which the government and people
are entitled unless it provides for the
retirement and cancellation of the legal
tender United States notes.
At the Mercy OF Foreigners
"The circulation of legal tender
United States notes and treasury notes
has 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 expelled mil
lions of dollars from our borders. The
maintenance at par of the United
States notes and treasury notes com
pels the government of the United
States not only to furnish gold TO pay
the private debts of its own citizens
abroad, but to furnish it to every
foreign nation and to the subjects of
every foreign nation whenever they
want it for any purpose; and, in order
to procure it for them we must, from
time to time, increase the public debt
by sales of bonds.
What Gold Has Done for London.
''The merchant and banker cannot
prosper when the farmer and mechanic
are idle or only partially employed, nor
can the farmer or mechanic prosper
when the operations of the merchant
and banker are improperly obstructed.
The pound sterling has made London
not only the principal market, but the
clearing house of the world. No matter
what character of currency other ma
tions ray use, no matter what standar,,
Of 7alue they may adopt, all their n
ternational balances are subjected a.
last to the test of the pound sterling.
and all their international bills of ex
change are naturally attracted to Il