The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-09-17
HEEXPLAlNSPARITY
CARLISLE TELLS ABOUT TIE STAN
DARD SILVER DOLLAR.

DARD SILVER DOLLAR.
silver 1t Can, and to Preserve the
Parity Government Buys the Silver,
Mints it and Owns the Coin-Pubiic
Faith is What Makes it go-Government
Would have to Make 1t Good with
Cold il the Demand Were Ever Made,
and Will do SO, Sa, Carlisle.
Par Harsbor, Me-, Sept. 16.-Secretary
Carlisle has written the following let
her on the subject of the maintenance OF
HE nar-ity between gold and silver;
Bar Harbor, Me-. Sept. II, 1896.
"AT-. lanes P. Helm, Louisviilt, Ky:
"Mv Dear Sir: Your letter asking
how the silver dollars, which contain
quantity Of bullion commercially worth
as1lv about So cents each, are MAINTAIN
cd at a parity with gold, notWithstahd-
ing the fact that the government does
not directly redeem them or that certifi-
ates issued Jpon them, in gold, as re-
ceived. and as a great many inquiries
upon the same subject are addressed 10
me daily from different parts OF the
country, which it rs impracticabie 10
answer in detail, / will take advantage
of your favor to answer them all at
cnce.
BOUGHT THE BULLION.
1.-THE standard silver dollars issued
from the min Us since the passage OF the
act Of 1878, now amour ting to more than
1855. OOo. 900 have been coined on public
account from bullion purchased by the
government. and are legal tender in
payment of all deEts, public and prl-
gate, without regard to the amount, ex-
rept when otherwise stipulated be-
tween the PARTIES. They bOiong to the
government when coined and they are
osid out by the government at a, parity
with gold for property and services of
ell kinds and received from the people
1T parity with gold in the payment of
Ill public duties and demands. The
government has made no Discrimination
whatever beteew the coins of the two
metals, gold having been paid upon IT'S
coin obligations when gold was demand
ed, and silver having been paid when
silver was demanded.
COINAGE LIMITED.
Under this policy, the coinage has
been so limited by law and the policy
of the treasury department, that the
amount coined has not become so great
as to drive the more valuable coin, gold,
out of use, thus destroying the basis of
our monetary system; and so long as
the two metals are Of equal CONNER
ciaT value at the ratio established by
law, this limitation upon the coinage is
absolutely essen tial to the maintenance
of their parity in effecting exchanges.
1t constitutes the principle of a safe
for the protection of our
exchanges against the depression which
the experience OF all countries has
shown would otherwise result from the
to use two legal tender coins OF
the same denomination, but of I'M |
equal value. If the limitation Were re-
moved, confidence in the ability OF the |
government to preserve equality in the |
exchanable value of the coins would |
be destroyed, and the parity would be
lost long before the amount of silver |
coinage had become really excessive. |
GOVERNMENT ABSOLvED.
with free and unlimited coinage of |
silver on account of private individuals |
and corporations, the government |
would be under no moral obligation to
maintain the parity, and, moreover, it |
would be unable to do so, because the |
volume Of overvalued silver forced into |
the circulation by legaa tender pINovis- |
ion would soon expel gold from the |
courtry. or put such a premium upon it /
that it would be impossible to procure |
and hold In the treasury a sufficient |
amount TO provide for the redemption Of /
oliver on presentation. In order to |
main tain the parity under such condi-
lions. the government would be COM
PEELED from the beginning to exchange |
gold for silver dollars and their paper |
representatives, whenever demanded; |
Just as 1T now exchanges gold for its /
own notes when demanded; and as the |
of silver dollars would be I'M
Gimited, and there constantly in |
creasing, a point would soon be reached |
where it would be impossible to con-
tinue the process Of redemption.
THE PUBLIC FAITH.
THE implied obligation of the gov
ernment to preserve the value of the
money which II coins from its own bul-
'son and for its own use, and which IT
forcse its citizens TO receive in ex-
change for its property and services.
a1e1F, bCNil SAAH4thAANdANSu ny INp SLdlu-
tory declarations which substan TALLY
pledge the public faith TO the mainten-
ance of that policy. The act of July
Ia. 1890. after providing that the secre-
tary of the treasury should, under such
as he might prescribe. re-
deem the treasury notes received in the
purchase of silver bullion. In gold or
silver coin at its discretion declares
that it is the established policy of the
United States 10 maintain the two
metals on parity with each other upon
the present legal ratio or such ratio as
may he provided by law and the act |
IF November l, 1898. again declares il
To he the policy of the United States 10
continue the use of both gold and silver
As standard money. and to coin both
gold and silver into money OF equal in
trinsic and exchangeable value. such
10 be secured through iaterna-
tionaa agreement, or 10y such safesua r6s
Of legislation as will insure the main
tenance OF the parity of value of the
coins of the two metals, and the equal
power of every dollar at all times in the
markets and in the payment of debts
MATTER OF CONFIDENCE.
with knowledge Of those assurances.
he people have received these coins,
They have relied cnofidently uDon the