The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-20
The Secretary Of the Treasury
Discoursed on His Pet
Subject.
REDEMPTION OF THE NOTES
If the Policy Is Continued the Interest
Bearing Debt Will Be Greatly
Increased.

NEW YORK, N. Y, Nov. 19.-The
Chamber of Commerce held its one hun
dred and twenty-seventh banquet tonight
at Delmonico's. The banquet-hall was
decorated with the Stars and Stripes and
the greatest enthusiasm prevailed. Alex.
ander E. Orr, president of the Chamber of
Commerce, presided, and around him were
seated, besides the speaker of the evening,
Hon. Carl Echurz, Rear Admiral Henry
Erben, Mayor Strong, Hon. Hilary A.
Herbert, Hon. Judson Harmon, General
Thomas H. Ruger, Commander Mont
gomery Sicard, James II. Constable, Will
liam H. Webb, Calvin s. Brice, General
Horace Porter, j. Edward Simmons, John
Jacob Astor and James G. Cannon. The
meeting was called to order by President
Orr who introduced the Hon. J. G.. Car
Isle, Secretary of the Treasury, who spoke
| on "Our Currency Question"
Mr.. Carlisle said in part:
1.-TWO years ago I said to you 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 psopIe 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 ability of the executive
branch of the Government to accomplish
| these objects, all who have given any at
| tention to the subject must realize that in
the existing state of our legislation
| the task is both difficult and ex-
pensive. Since that declaration was
made here interest-bearing bonds to the
amount of $162, ,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 presented and redeemed hereafter,
they will remain unpaid. If this policy
of redemption and reissue is continued, the
interest-bearing debt will be greatly in
creased, while the non-interest-bearin z
debt will not be in the least diminished.
The disadvantages of such system are so
obvious that it is hardly necessary to emu
merate them. The Government has under
taken to keep an unlimited amount of cir
culating notes equal in value to gold coin,
and at the same time it has no legal au-
thoritv to compel anybody 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 $346, ,6s1 ,000 and the
amount of treasury notes outstanding is
little over $140, 100000, 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 sta
bility of the whole volume Of our currency
and has caused immense losses by fuctua-
tions, of which it is impossible to keep the
public aware. It was never contemplated
that the Government should convert itself
| into a bank of issue. The Treasury De-
partment is simply a public agency for
the management of the financial affairs of
the Government.
THE circulation of legal tender United
States notes and treasury notes has ten
dency 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. No other Government
| in the world is required to supply gold
from its treasury to discharge the private
obligations of its citizens, and no Govern
ment 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 its people, bet 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 outstanding, for all
our currency would thus oe reduced to the
silver standard.
"The theories that Government can
create money by placing its stamp upon
paper; that legislative enactment can
make so cents equ al to 100 cents; that ar
tificially inflated prices, paid in deprecia-
ted currency. are better for the people
than natural prices paid in sound cur
rency, and various other vagaries, are all
directly attributable to the long continued
use of legal tender. The proposition that
| promise of the Government to pay money
is money Is as absurd as the proposition that
| promise to deliver horse is a horse. The
agitation for the free coinage of legal ten
der silver at ratio which would put only
so cents worth of bullion in a silver
dollar is predicated upon the same
vicious principle. The United States note
| was forced loan from the people 10 the
| Government, which the Government prom
| ises to repay in dollars, but the free COIN
| age of legal tender silver at the ratio of 16
to 1, or at any other ratio not correspond
| ing with the commercial value of the two
| metals, would be forced loan from the
people to the owners of silver mines and
silver bullion without promise of repay
ment by anybody. One loan was forced
for the benefit of the Government, in q
time of war, but the proposition of the ad-
vocates of free coinage is to force another