The record-union., 1896-03-17

WASHINGTON, March 16-Rap-
resentative Patterson of Tennessee
made public to-day the following
letter, which he received this morning
from Secretary Carlisle:
Treasury Department, Office of the
Secretary, Washington, d. c., March
16, 1896.
Hon. Josiah Patterson, House of
Representatives-My Dear Sir: Your
favor of February 18th was duly re-
ceived, and ought to have been an
swered at once, but the pressure of Off
cial business has compelled me to delay
a response until now
You state that in speech delivered
by Hon. Charles F. Crisp in the House
Of Representatives on the 18th day of
February that gentleman said: He
(meaning the Secretary of the Treas
ury) refused to give silver for gold be-
cause he must hold the silver to pay the
silver certificates and Sherman notes,
issued Under the Act of 1890 and when
a Sherman note issued under the Act of
1890 is presented he redeems it in gold
and not in silver. What mockery is
this? What sort of friendly treatment
is accorded silver by this law and the
practice that obtains at the Treasury
| of the United States:' and you ask me
TO state fully how you Q have dealt
with the silver currency since your (1ny)
| lncumbency of the office of Secretary
of the Tresury, and whether you Cd
have in dealing with the subject dis
| credited silver?
/ In answer to your question, I can
only say that in all the operations of
the Treasury Department during my
| administration of its affairs the legal
tender gold and silver coins Of the
| United States have reen treated pre-
cisely alike, except that greater efforts
have been made to keep silver coins in
circulation than have bee made to keen
gold coins in circulation
The amount paid out by the depart
ment in silver coins and silver certifi-
Gates greatly exceeds the amount paid
out in gold coins and gold certifica tes.
and in no instance has the least dis
elimination been shown silver and its
paper representative. In no instance
has silver or silver certificates been re-
fused in payment of a debt or demand
on the Government, and in no instance
has the Government. refused to paw siJ-
yer coins or silver certificates in the dis
charge of its obligations when the hold
ers of the obligations demanded or re-
quested such payment
When United States notes or treas
ury notes are presented for REDEMPTION
gold is paid if it is demanded, and if sill
yer is demanded silver is paid. Thus
the coins of the two metals are treated
exactly alike in making payments by
the Government as well as in the dis
charge of the debts due to the Govern
ment.
1t has always been the policy of the
Treasury Department to encourage the
use of silver to the largest possible ex
tent, and in order to accomplish this
standard silver dollars will be sent by
| express at the expense of the Govern
ment to anyone who will deposit an
equivalent amount of silver certificates
or treasury notes of 1890 with the
! United States Treasurer or any Assist
ant Treasurer, or with a national bank
! depository, and subsidiary silver coins
Will be sent by express at the expense of
the Government to anyone who will de-
posit with such officers or banks anv
kind of United States currency or ma
tional bank notes; but gold is not sent
to anybody free of charge.
In August, 1893, there was a great
and unusual demand in nearly every
part of the country for currency of
small denominations, and in IFS at
tempts to supply the demand the Treas
ury Department paid out in defrayine
the expenses of the Government and
IN exchange for other form of currency
all the silver that could be lawfully
used for these purposes, so that for n
snort period 1t was compelled to sl1s-
pend payment in standard silver dollars
except in the redemption of silver GER
tlf1cates and treasury notes of 1890.
'The law authorizing the issue of sill
Yer certificates upon deposits of silver
provides that the coin deposited for
or representing the certificates shall be
retained IN the treasury for the pay
ent of the same on demand 1t is there
tore plain that whenever the amount of
silver dollars in the treasury does not
exceed the amount of silver certificates
outstanding, the Secretary of the Treas
ury cannot, without violation of the
law, pay out such silver except for the
redemption of certificates. At such
times he has no more right to exchange
silver dollars for gold than he has to
But there is also another fund in the
treasury which is required by law TO
be held for different purpose It CON
sists of the bullion and the standard
silver dollars coined from the bullion
purchased under the Act of July IA.
1890. That Act provides for the pur-
chase of silver bullion at the market
price, and the issue of treasury notes in
payment for it, and it also declares that
no greater or less amount of such notes
shall be outstanding at any time than
the cost of the silver bullion. and the
standard silver dollars coined there
from, then held in the treasury pur-
chased by such notes.
Under this provision the Secretary
is required to keep in the treasury at
all times an amount of silver bullion
at its cost price, and in standard silver
dollars coined from the purchased
bullion, exactly equal TO the amount Of
the treasury notes outstanding, and
he cannot, therefore, lawfully use such
standard silver dollars except for the
redemption and cancellation of treasury
notes.
My letter to the United States Sem
ate, upon which Mr.. Crisp's statement
seems to have been based, was written
on the 18th day Of August, 1893, and at