The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-11-20
our CURRENCYSYSTEM
CARLISLE SPEECH BEFORE THE
NEW YORK CHAMBER
OF COMM MERCE.
ITS ANNUAL BANQUET LAST NIGHT

lie DE iarts ,he Fundamental Vice in
turs urrency system go be the legal
Tender Note Redeenable i'm oin by
the Government and RG.Issuabie by
Law-Jhc Prom Sc of she Govern
ment 10 Paw Va oneY is Not Money
Free Coinage Of Silver Dis scussed.
NEW YORK, Nov. 19.-The 127th an
uual banquet Of the Chamber of Com
merce of the State of New York was
held at DelmOnicO's this evening. The
yearly dinner of this organization is
among the most important events Of
the metropolis and that of tonight
was no exception.
The chamber 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 these dinners that Sec
retary of the Treasury Window was
stricken with sudden death few years
ago. Covers for 275 were laid tonight
The decorations were striking. Back
of President 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 Presi-
dent Orr raped for order and in a
brief speech in which he referred to
the Armenian atrocities introduced
Secretary Carlisle, who spoke on Our
currency system"
Secretary Carlisle said: "Two wears
ago / said that the disposition and
ability 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 rea-
sonably doubted and ought not to be
the subject of further controversy. But
the task is both difficult and cxpen-
sive. Since that declaration Was made
here, Understanding bonds to the
amount Of 1862, ,315, 400 have beer is
sued to procure gold for the redemp-
tion of United States notes, and the
notes still remain the same as at the
beginning. The notes are redeemed.
but they are unpaid. Our legal stand
ard of value is as sound as that of any
country in the world, and if we had
such q currency system TO guarantee
its permanent maintenance, no gov
eT4ntcut would command a larger
credit or realize greater benefits froTH
1T than ours; but the great investors
OF the world appreciate the difficulties
under which we are laboring, and un-
til these difficulties are removed we
cannot reasonably hope to see perfect
confidence restored at home or abroad.
The fundamental vice in our currency
system is the legal tender note, re-
deemable in coin by the government
and re-issuabIe 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 slight
est diminution Of the coin reserve at
once eXcites feeling Of apprehension
and dIstrust, affects the values of all
securities, curtails investments, and
more or less seriously embarrasses all
the business affairs Of the people.
I'm attempting to provide a circu-
lating medium consisting Of it's own
notes redeemable in coin on presenta-
tion and reasonable after redemption,
the government of the United States
is engaged in a business for which it
is wholly untitled and which was
| never for a moment contemplated by
its founders. 1t has right to borrow
money and issue evidences of the debt,
but it was never cOnDIated 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
| int inI 10 ho civ Ia IN
| agency for the management Of the
| fiscal affairs of the government-as a
| government, not as a bank and no
| change made in our currency will af-
| ford relief unless it provides for the
retirement OF the legal tenders.
"The circulation of legal tenders has
a tendency to drive out of use and out
| of the country the very coin in which
| the government is compelled TO re-
deem them; and it has expelled mil
| lions of dollars from our borders. Al
| though the government and our own
| people are compelled to receive them.
| they will not discharge international
| obligations, and gold must go out to
settle all final balances against us.
| No other government in the world is
required to supply gold from it's treas
ury to discharge the private obliga-
tions of its citizens. While the pecun-
| iary loss to which the people have been
subjected by the issue and continued
circulation of legal tender paper has
been almost incalculable, this has not
been the only injury inflicted upon the
| country.
''The theories that the government
can create money by placing it's stamp
upon paper or other material; that a
| Legislative enactment can make fifty
cents equal in value to one hundred
! cents; that artifcially inflated prices
paid in a deprecated currency, are
better for the people than natural
| prices, paid in a sound currency, and
various other vagaries now floating
| like bubbles in the political atmos-
| phere, are all directly attributable to
| the long and continued use of legal
tender paper. The proposition, that
! the promise of the government to pay
money is money, is just as absurd as
! the position that a promise to deliver
horse is a horse, and yet there are
eminent men. high in the public coun-