The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1895-11-27


commerce held it's 127th annual banquet
at Deimonico's Tuesday night. Many
men distinguished in political and finan-
claI circles were present. Alexander e.
Orr, president of the chamber of COM
merce, presided. The leading speaker
was Hon. John G. Carlisle, secretary
OF the treasury, whose theme was Our
Currency Question" He spoke in part
as follows:
Two years ago said to you that the dis
position 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 people, could not be reasonably
doubted and ought not to be the subject OF
further controversy. While scarcely any
one now seriously doubts either the dis
| position 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 expensive. Since that
declaration was made here, intereSt-bear-
| ing bonds to the amount of $162, 315, 400 have
| been issued to procure gold for the redemp-
| ton of United States notes and treasury
notes. and the obligations of the govern
ment on account of the notes still remain
he same as at the beginning.
Laws Must Be Changed.
1.-THE notes are redeemed, but they are
unpaid. and If our legislation is not
changed, no matter how often they nay be
presented and redeemed hereafter, they VIII
remain unpaid. If this policy Of redemp-
ton and reissue Is continued the interest
bearing debt will be greatly increased,
while the Notwithstanding debt will not
| be in the least diminished. The diSadvan-
tages of such system are so obvious that
| iC ri u vnan nv fa re-
! The government has undertaken to keep
an unlimited amount of circulating notes
| equal in value to gold coin, and, at the same
time, it has no legal authority to compel
anybody to give 1t 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 $S46, 6S1 900. and tire
amount Of treasury notes outstanding Is
! little over 100000, yet the total amount
that may be presented for redemption is
unlimited, because there is no restriction
as to the number of times the same note
may be returned to the treasury and ex
| changed for gold.
Responsible for Many vagaries.
1.-THE theories that the government can
| create money by placing it's stamps upon
! paper; that a legislative enactment can
make SO cents equal to 100 cents; that arti-
dcially inflated prices. paid in depre-
! eiated currency, are better for the people
than natural prices, paid in a sound cur
] rency, and various other vagarieS are all
/ directly attributable to the long continual
use of legal tender paper. The proposition.
! that a promise of the government to pay
! money is money, Is just as absurd as the
| proposition that promise to deliver a
/ horse is horse.
1.-The agitation for the free coinage oflegal
tender silver at ratio which would put
only so cents worth of bullion in a silver
| dollar is predicated upon the same vicious
I MI
| forced loan from the people to the govern
ment, which the government promises to
| repay In dollars, but free coinage of legal
| tender silver at the rate of sixteen to one, or
| at any other ratio not corresponding with
| the commercial value of the two metals,
would be a forced loan from the people
to the owners Of silver mines and silver
bullion without a promise of repayment
| by anybody. One loan was forced for the
benefit of the government in time of
| war, but the proposition of the advocates
! of free coinage is to force another loan
| for the benefit Of private individuals and
corporations, in time Of profound peace.
| In principle, the two measures are precise
ly alike. The free coinage of legal tender
| silver would be far more unjust than the
issue Of legal tender United States notes.
Leading Vice of Our system.
1.-THE fundamental vice in our currency
| system is the legal tender note, redeemable
4
| under the law. This threatens the stability
! of the whole volume of our currency and
has caused immense losses by fluctuations,
| of which it is impossible to keep the public
aware. 1t was never contemplated that the
| government should convert itself into
bank of issue. The treasury department
is simply public agency for the manage
| ment of the fiscal affairs of the govern
| ment.
1.-THE circulation Of legal tender United
! States notes and treasury notes has
! tendency to drive out of use and out of the
| country the very coin in which the govern
| ment is compelled to redeem them; and 1t
has expelled millions Of dollars from our
| borders. No other government in the
world is required to discharge the private
| obligations of it's citizens, and no govern
ment ought to be required to do so. The
| fact that the government is required to bor-
| row money is an injury to it's credit and the
| credit of it's people, but the injury resulting
| from this cause is Insignificant in COM
parison with the ruin that would follow n
| abandonment Of the reserve while the
| notes are outstanding, for all our currency
| would thus be reduced to the silver stand
| ard.
Must Be No Equivocation.
rhe speaker closed with a hope that the
| political platforms of both the great parties
would henceforth be clear and uneQuivocal.
| III a majority of the people Of the United
| States are in favor of the maintenance If
| the present standard Of value and opposed
| to the free and unlimited coinage of legal
| tender silver, they ought to have an OPP
| portunity to say so in form which will
| preclude all controversy as to whether they
| have said so or not. On the other hand, If
a majority Of our people are in favor of
| abandoning the present standard of value
| and establishing silver monometallism ny
| the free ana unlimited coinage OF that
metal into full legal tender money. they
| should have an opportunity to say that.
When this issue Is directly presented we
| need not fear the result"
Would Discard the Knapsack.