The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-09-16

Washington. Sept. 15.-Secretary Car
Isle from his summer retreat in Bar
Harbor, Me-, has addressed to one of
his Kentucky correspondents the fol-
lowing letter. which is this day made
public:
Your letter. asking how the silver dol
lars which contain quantity OF buiilon
commercially worth only about 80 cents cents
each, are maintained at a parity with
gold. Notwithstanding the fact that, the
government does not directly redeem
them, or the certificates issued upon them.
inquiries upon the same question are
addressed to me daily from different parts
Of Of the country; which 1t 1 i Imp impraSStisn
tage of your favor to answer them all
at once.
All the standard silver dollars issued
from the mints since the passage of the act
Of 1878, now amounting to more than
siSS, 100000. have been coined to public
account from bullion purchased by the
ment OF all debts. public and private,
without regard to the amount except when
otherwise expressly stipulated in the con-
long to the government when coined, and
they are paid out by the government ut 4
parity with gold for property and services
at a parity with gold in the payment of all
public dues and demand.
The government has made no discrim-
nation whatever between the coins of the
two metals, gold having been paid on its
coin obligations when gold was demanded
and silver having been paid when silver
was demanded. Under this policy the the
the policy of the treasury department.
amount coined has not become so great
as to drive the more valuable coin. gold:
out of use, and thus destroy the basis of
our monetary system; and so long as the
two metals are of unequal commercial
value, at the ratio established by law, this
limitation upon the coinage, Is, in my
opinion absolutely essential to the main
tenance of their parity in effecting ex-
changes. 1t constitutes the principal safe
against the depreciation which the eX-
perience of all countries has shown would
otherwise result from the attempt to use
two legal tender coins Of the same de-
nomination, but of unequal value.
If the limita ton were removed conf
dence in the ability of the government to
uc of the coins would be. destroyed and
the parity would be lost long befOre the
amount OF silver coinage had become real,
of tree anf o nrYats n
dividuals and corporations. the govern
ment would be under no moral obligation
to MAINTAIN a, parity, and moreover, it
would he unable to do so. because the vol
ume of over-value in the silver forced into
the circulation by q legal tender provision
would soon expel gold from the country
~
would be impossible to procure and hold
in the treasury a sufficient amount to
provide for the redemption of silver on
presentation. In order to. maintain the
parity under. such conditions, the gov
ernment would be compelled from the be-
ginning to exchange gold for silver dol
Whenever % , demanded just as it now ex-
changes gold for its notes when demand
ed; and as the coinage of silver dollars
would be unlimited and therefore con-
ctnnt1U incrau sing n npint Wpn11 lp
reached where it would be impossible to
continue the process of redemption.
PARITY REQUIRED BY LAW.
The implied obligation of the govern
ment to preserve the value of. the money
which it coins from It's own bullion ana
Zens to receive in exchange for their
property and services has been, supple
msntsd by TIVE satTtGry dfGlara,iSns
faith to the maintenance of that policy.
The act of July a.. 1890 after providing
that the secretary of the treasury should,
scribe, redeem the treasury notes issued in
the purchase of silver bullion in gold or
silver coin, which. is his discretion. de-
the United States to maintain the two
metals on parity with each other upon
the present legal ratio. or such ratio as
1888, again declares 1t to be "the policy OF
the United States to favor the use of both
gold and silver as standard money and to
coin both gold and silver xc5o into money on
such equality to be secured through in
ternational agreement or by such safe
guards of legislation as will insure the
maintenance OF the parity of values Of the
coins of the two metals and an equal
power on every dollar at all times in the
markets and in the payment of debts"
With knowledge of these assurances. the
people have received these coins and have
relied confidently upon the good faith of
their government; and the confidence thus
inspired has been a most potent factor in
the maintenance of the parity. The pub
lie has felt satisfied that. so long as our
present monetary system Is preserved. the
government will do whatever its moral
obligations and express declarations re-
quire it to do. and very largely as con.
sequence of this confidence in the good
faith of the executive authorities, the coins
have not depreciate in value. It is not
doubted that whatever can he lawfully
done whenever it becomes necessary, and
although silver dollars and silver certii-
Gates have not. up to the present time.
the time shall ever come when the parity
caEnot be otherwise maintained, such ex-
changes viii be made; 1t is the duty
execute in good aR' faith the oShiy poley as
ciared by congress and whenever he shall
be satisfied that the silver dollar cannot
the gold dollar. except by receiving it in
exchange for the gold dollar when such
exchanges is dem andcd, il will be his duty
policy is. adhered to and the coinage is
kept within rea sonable limits. the means
heretofore employed for the maintenance
of the parity will doubtless be, found suf-
tcient In the future and our silver dollars
and silver certificates will continue to cir
culatc at par with gold, thus enabling the
people to use. both metals instead Of one
only, as would be the case IL the parity
were DESTROYED by free coinage