St. Paul daily globe., 1895-11-20
SECRETARY, CARLISLE POINTS
OUT THE WEAKNESS OF OUR
CURRENCY SYSTEM.
REMEDY MUST BE FOUND.
LEGAL TENDER NOTES SHOULD
BE WITHDRAWN TO I'M
PROVE OUR CREDIT.
DOUBTS MUST BE DIsPELLED.
FOrcible Presentation of Sound
Money Doctrines in New
York Address.

NEW YORK, Nov. 19.-The one
hundred and twenty-seventh an
nual banquet of the chamber of COM
merce of the state of New York was
held at Delmonico's this evening.
The yearly dinners of this organiza-
ton are among the most important
events of the metropolis, and that of
tonight was no exception. The cham
ber always musters notable speak
ers and distinguished men around
its board. Utterances that have
moved the policy of the government
have been made on these occasions,
and it was at one of the chambers
dinners that Secretary of the Treas
ury Window was stricken with sud-
den death a few years ago. Covers
for 275 were laid tonight. The dec
orationS were striking. Back of Pres
ident Orr's chair was the seal of the
chamber, surmounted by silk and
golden braided coat of arms of the
United States, draped in American
flags and flanked by the seals of the
state and city of New York. 1t was
somewhat after o'clock when Pres
ident Orr, welding the gavel of the
chamber, raped for order, and, in
a brief speech, in which he referred
to the Armenian atrocities, intro
duced Secretary Carlisle, who spoke
on Our Currency System" He
said:
"Mr. President and Gentlemen: I
have but little to say this evening, and
will take but little time to say it. Two
years ago, at your annual banquet, l
said that the disposition and the abil-
ity of the government to maintain it's
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 reasonably
doubted and ought not to be the SUBJ
Ject of further controversy. But the
task IS both difficult and expensive.
Since that declaration was made, in
terest-bearing bonds to the amount of
$152, ,315, 400 have been issued to procure
gold for the redemption of United
States notes. The notes still remain,
the same as at the beginning. The
notes are redeemed but they are un-
paid. Our legal standard of value is
as sound as that Of any country in
the world. If we had such a currency
system to guarantee its permanent
maintenance no government would
x
greater benefits from it than ours; but
the great investors of the world ap-
preciate the difficulties under which
we are laboring, and until these diff
cultieS are removed we cannot rea-
sonably hope to see perfect confidence
restored at home or abroad.
A BAD BUSINESS.
''The fundamental vice in our cur
rency system is the legal tender note,
redeemable in coin by the government
and reissuable 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 slightest diminu-
ton of the coin reserve at once Gre
ates a feeling of apprehension and dis
trust, affects the values of all secur-
tiles, curtails investments, and more
or less seriously embarrasses all the
business affairs of the people. In at
tempting to provide a circulating
medium consisting of its own notes re-
deemable in coin on presentation and
ernment of the United States is en-
gagged in a 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,
but it was never contemplated that it
should convert itself into a bank of
issue and furnish a legal tender paper
currency for the use OF the people.
The treasury department ought to be,
and was intended to be, simply a pub
lie agency for the management of the
fiscal affairs of the government-as a
government, not as a bank. No change
made in our currency system will af-
ford relief unless it provides for the
retirement of the legal tenders. The
circulation of legal tenders has a tend
ency 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 millions of
dollars from our borders. Although
the government and our own people
are compelled to receive them. they
will not discharge international obli-
cations and gold must go out to settle
all final balances against US. No other
government in the world is required to
supply gold from its treasury to dis
charge the private obligations Of its
citizens.