The Providence news. (Providence [R.I.]) 1891-1906, 1895-11-20
MONEY SUBJECT
Discussed by Secretary Carlisle Be-
fore Gotham Merchants.
CHANGE IN CURRENCY SYSTEM
One Of the Chief Needs Of the
Government.

NEW YORK., Nov. 20.-Tho annual BAN
quot Of the Chamber of Commerce OF
the state Of New York was hold mt Del.
monico's last night. The menu was elabor.
ate and the service beautiful. A strlnged
orchestra In the gallery discoursed pa
triotic and popular melodies. New York's
most solid business men were present ut
the banquet.
Shortly after 0 o'clock President Orr
raped for order, and In % brief speech, In
which nc referred TO the Armenian atroci.
ties, introduced Secretary Carlisle, who
spoke on 'Our Currency System" lie
said:
1.-TWO years ago / had the honor to at.
tend your annual banquet, n to make
some remarks, in the course of which ]
said that the disposition and ability of the
government to maintain its own credit nj
the highest standard. and to preserve tho
integrity OF all the forms OF currency in
circulation mons the people, could not
be reasonably doubted, and ought not 10
be the subject Of further controversy.
"Sinco hat declaration was made here.
interest bearing bonds to the o OF
Si62, 3i5, 40ohavc been issuedto procure gold
for the redemption of United States notes
and treasury notes, aud obligations Of the
government on account OF the notes still
remain the same Us In the beginning.
The notes arc redeemed, but they are I'M
paid, and IL our legislation Is not changed,
no matter how often they be presented
and redeemed hereafter, they Will still 70.
main unpaid,
One-sided Obligation.
'If this policy OF redemption and reissue
is continued, the interest bearing debt will
ha ur.aflu innraasod xvhila tho p0ntntar.
est bearing debt will not be In the least
diminished. The disadvantages of such a
system are SO obvious that it Is hor.,y
necessary TO enumcrato the, The gov.
crnmcnt has undertaken TO keep an un.
limited amount Of circulating notes in
value cqnul TO gold coin, and, mt the same
time, 10 has 10 legal authority to compel
anybody 10 give IL gold in exchange for
the notes, or TO pay gold on any demand
due TO ii. The obligation Is all on ono side
aud the power Is all on the other.
Our legal standard OF value is as sound
as that of any country In the world, and
II we had such a currency system ms Would
certainly guarantee its permanent main.
tenancc, no government or people would
command q larger credit or realize greater
benefits from IL than ours; but the great
investors of the world appreciate the diff
~ficulties under which we are la ,ring, and
until these difficulties nrc removed we
cannot reasonably hope 10 see perfect con-
fdence restored ut home or abroad.
''rho fundamental vice in our currency
system is the legal tender note redeemable
in coin by the government and reasonable
under tho law. There are other defects,
but this Is Fundamental aud radical, and
threatens the stability OF the whole vol.
~, 80 AMI c,trranau Co 1OuD NJ thnca
notes are outstanding, the slightest dim.
mutton of the coin reserve authorized
by law for their redemption at once ex.
cites Il feeling Of apprehension n mis-.
trust 2, the public mind, affects the values
of all AIR securities, curtails investments
and, ihorc or less. seriously embarrasses
all tie business affairs OF the people.
.Il nticmpting TO provide n circulating
medium consisting of its own notes re.
decmsblo In coin on presentation and re-
issuablc after redemption the government
OF the United States Is engaged In a bust.
ness for which IL Is wholly untitled and
which was never for a moment contem.
plated by its founders. 1t was never con.
templated that Il should convert itself
into n bank of issue and furnish a legal
tender paper currency for the use CT the
people.
tali For hetirefnent.
"No change that can he made In our
currency system will afford the relic f to
which tho government md people arc EN-.
titled unless IL provides for the retire.
men and cancellation of the legal tender
United States notes. Anything less than
this will bc simply q palliative and not a
cure for tho financial ills to which the
country is now subject.
"Whilc tho %pecunlnry loss 10 which the
people have been Subjected by the issue
and continued circulation OF legal tendcr
paper has been nlmcsr i~ncalculable, this
has not been by my means the only in
jury inflicted upon the country. The
widespread Generalization OF public scrti-
ment resulting from tho false theories
which such II system necessarily engcn-
ders has been. and still Is, one Of tho great.
est sources of our |flnUuctIt difficulties.
Tho proposition that u promise Of the
government to pay IL money Is just n alb
surd us n proposition that IA promise to de-
liver "a horse is n horse. And yet there are
eminent men high In tho public councils
who believe that the United States prom
issory note Is actual money, and that tho
statute which conlpels all the people To re-
ccive IL ms actuN money Is constitutional
and ought 20 bo continued in force.
"Tho pound sterling has made London
not only the principal market, but tho
clearing house OF the world. England not
only realizes great profits from her own
trade. but tho international trade of all
our countries. for the siinplo reason that
the balances arc settled upon the basis OF
her standard of value, aud tho credits
which represent them almost necessarily
pass through the hands OF her merchants
aud bankers.
"With an inferior currency, we could
mover successfully contest her supremacy.
and the BELIEF that we can punish her or
enrich ourselves by destroying the value
of oir own money is ono VI tho most re-
markabic dclusions OF the agc. We arr
great enough nni strong enough 90 main
tain our commercial and financial indie
pcndcnce IN opposition 10 any country in
the world. bur IN order 20 do So we must
be allowed To use ms effective instrument