The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-11-20
THE FUNDAMENTAL FAULT
Is the Paper Dollar, RedeemabIe in
Coin and Reissuable
Which Drives Out of Use the Coin Necessary
for Redemption
No Change In the Currency System viii
Afford Relief Unless 1t Provides fer
the Retirement of the
Legal Tenders
ASS ocla,ed Press Special Wire.

Associated Press Special Wire
NEW YORK, Nov. 19.-The one hun.
dred and twenty-seventh annual BANQUET
OF the chamber of commerce of the state
OF New York was held at Delmonico's
this evening. The yearly dinner of this
organization is among the most import
ant events of the metropolis, and that of
tonight was no exception. The chambe
always musters notable speakers and dis
tlnguished men around its board. Utter
ances that have moved the policy OF the
government have been made on these occa-
sions, and it was at the end of the cham
hers dinner that Secretary of the Treas
ury Window was stricken with sudden
death few years ago. Covers were set
for 215 tonight.
1t was somewhat after o'clock when
President Orr, welding the gavel of the
chamber, raped for order, and in a brief
speech, in which he referred to the Ar.
menlan atrocities, introduced Secretary
Carlisle, who spoke on Our Currency Sys-
tenn.
Mr.. President and Gentlemen:-I have
but little to say this evening, and will
take put little time to say it. Two years
ago at your annual banquet ] said that
the disposition and ability Of the govern
ment to maintain its own credis at the
hiphest standard and to preserve the in
tegrity of all forms of currency in circu-
lation among the people could rot bs
reasonably doubted, and Uaght not to be
ths subject OF further controversy. But
the task is both difficult and expensive.
Since that declaration was made here in
tefest bearing bonds to the amount of
$l62. 325, 100 have been issued to procure
gold for the REDEEM prion of the Unitea
States notes. ThesEOtes still remain the
same as at the beginning. The notes are
redeemed, but they are unpaid. Our
legal standard of value is as sound as that
of any country in the world, ald if we
had such currency system AS to guaran.
tee It's rerm,anent maintenance, nc. gov.
eminent would com mand a larger credit
or realize greater benefits from it than
ours; but the great investors of the
world appreciate ths difficulties under
which We are laboring, and until these
difficulties are removed, we cannot reas-
onahly hope to ses perfect confidence 70.
stored at home and abroad.
The fundamental vics in our currency
system is the legal tender note redesma-
BILE in coin by the government and reis-
suable under the law. There are other
defects. but this threatens the liability
OF the whole volume of our currency.
So long as these notes are outstanding
the slightest diminution OF the coin re-
serve at once excites feeling of apprs-
hension and dlstrust, affects the values
of all securities, curtails investments
and more or less systematically embar>
rasses all the business affairs of the
people. In attempting to provide cir
cuating medium consisting of its own
notes redeem a ble in coin on presentation
and reissuable after redemption, the gov
ernment OF the United States is engaged
in business for which it is wholly un-
fitted and which was never for a moment
plated by its founders. It has a
right to borrow money and issue evil
dences uf the debt, but il was never con-
mplated that it should convert itself
into bank of issue and furnish o legal
tender paper currency for the use OF the
people. The treasury department. ought
10 be, and was intended to be, simply
public agency for the maagement of the
FISCAL affairs of the government as q gov
ernment, not as bank.
No changes IN our currency system will
affo rd relief unless 1t provides for the re-
tirement OF the legal tenders.
The circulation of legal tenders has q
tendency to drive out of the country tho
very coin in which the government is
compelled to redeem them, and it has OK.
pellsd millions of dollars from our bor-
ders. Although our govern ent and our
own people are compelled to receive them
they will not discharge international OBJ.
ligations-the gold must 60 out to settle
all final balances against us. No other
government in the world is required to
supply gold from its treasury to dis