The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-09-16
HOW The PARITY
IS MAIN AIMED
Secretary Carlisle Explains
the Coinage of Silver
and Gold.
PREFERENCE NOT SHOWN
Information Given TO a Batch
of Correspondents in
One Letter.
UNCLE SAM IS IMPARTIAL.
When Yellow Metal Money Is De.
manded. II Is Paid, and So
Is the White.
UNCLE SAM IS IMPARTIAL

WASHINGTON, D. c., Sept. 15.--Secre-
rotary Carlisle, from his summer retreat in
Bar Harbor, Me-, has addressed to one of
his Kentucky correspondents the following
letter, which is this day made public:
James p. Helm, LoWispilIe-MY DEAR SIR:
Your letter asking how the silver dollars
which contain quantity of bullion CONNER
cially worth only about 50 cents are main
tanned at parity with gold, Notwithstanding
the fact that the Government does not directly
redeem them or the certificates issued upon
them in gold, is received. and as great many
inquiries upon the same subject are addressed
to me daily from different parts of the country
which ir is impracticable to answer in detail
will take advantage OF your favor to answer
them all at once.
AL the standard silver dollars issued from
minis since the passage of the act of 1873, now
amounting to more than $433, 000, 900, have
been coined on public account from bullion
purchased by the Government, and are legal
tender in payment of all debts public and pri-
vate, without regard to the amount, except
when otherwise expressly stipulated in the
contract between the parties. They belong to
the Government when coined, and they are
paid out by the Government at parity with
gold for property and services of all kinds, and
received from the people at parity with gold
in the payment of all dues and demands. The
ever 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 coinage has been
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 the country and thus de-
stroy the basis of our monetary system; and
so long as the two metals are of unequal COM
mercial value at the ratio established by law
this limitation upon the coinage is, in my
opinion, absolutely essential TO the mainte-
nance of their parity in effecLing exchanges
1t constitutes the principal safeguard for the
protection of currency against the deprecIe-
ton which the experience of all countries has
shown would otherwise result in the attempt
TO use two legal tender coins of the same de-
nomination but OF unequal value If the
Limitation were removed confidence in the
ABILITY OF the Government TO preserve equality
in the exchangeable value of the coins would
be destroyed and the parity would be lost long
before the amount OF silver coinage had be-
come really excessive,
With free and unlimited coinage of silver
on account OF private individuals and corpor-
ations, 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 oyeryalued silver forced into
circulation by legal tender provision would
soon expel gold from the country, or put such
premium upon il that 1t would be impossible
to procure and hold in the treasury sufficient
silver on presentation. In order to maintain
the parity under such conditions the Govern
ment would be compelled from the beginning
TO exchange gold for silver dollars ana their
paper representatives whenever demanded,
just as it now exchanges gold for its own notes
when demanded; and as the coinage of silver
dollars would be unlimited and therefore
constantly increasing a point would soon be
reached where it would be impossi BILE to con-
tinue the process of redemption, The implied
obligation Of the Government to preserve the
value OF money which it coins from it's own
bullion and for its own use and which it forces
its citizens to receive in exchange Tor their
property and service has been supplemented
by two statutory declarations, which sub
stantally pledge the public faith to the main
tenance of tnatspolicy.
The act OF joy ID, 1890, after providing that
the Secretary of the Treasury should, under
deem the treasury notes issued in the pur-
chase of silver bullion in gold or silver, at his
discretion, declares that ii is sthe esta blished
policy of the United States to maintain the
the present legal ratio, or such ratio as may be
provided by law" and the act of November /,
1893, again declares it to be 1.-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 intrinsic
and exchangeable value, such quality to be
secured through international agreement, or
By such safeguards of legis iation as will in
sure the maintenance of The parity of the value
of the coins of the two metals and the equal
kets in the payment of debts.
With knowledge OF these assurances the
people have received these coins and have re-
lied confidently upon the good faith of their
spired has been a most potent factor in the
maintenance of the parity. The public has
been satisfied that so long as our present mon
etary system is preserved the Government will