The Red Cloud chief., 1896-09-25

maintenance Of the parity between
gold and silver, written by Secretary
Carlisle, was made public yesterday:
"BhH HARnoH, Me, Sept. IL
James 4. Helm, Louisville, Ky. My
Dear Sir: Your letter asking how
the silver dollars which contain a
quantity of bullion, commercially
worth only about ffty.thrcc cents
each, are maintained at n parity with
gold. Notwithstanding the fact that
the government docs not directly re-
deem them, or the certificates issued
upon them, in gold, Is received and.
ms n great many inquiries upon the
same subject are addressed to inc
daily from different parts OF the
country, which IL is impracticable to
answer in detail. | will take advan.
tagc OF your favor TO answer them all
Mt once.
"All the standard silver dollars is.
sued from the mints since the passage
OF the act OF 1878, now amounting tn
more than Si33, O00. 900, have been
coined on public account from bullion
purchased by the government and are
legal tender in payment OF all debts,
public ana private, without regard to
the amount, except when otherwise
expressly stipulated in the contract
between the parties. They belonged
to the government whcn coined and
they are paid ont by the government
at a parity with gold for property md
services OF all kinds, aud received
from the people Mt u parity with gold
in the payment of all public dues and
demands. The government has made
no discrimination whatever between
the coins OF the two metals, gold hav.
ing been pnid OF its coin obligations
when gold was demanded, and silver
having been paid when silver was de.
manded.
RESTRICTIONS PRESERVE mi
"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 rs to drive the more valuable
coin. gold. out of use. and thus de-
stroy the basis of our monetary sys.
TEN; and SO long rs the two metals are
OF unequal commercial value, at the
ratio established by law, this limita-
ton upon the coinage is, in my ppm
ion, absolutely essential to the main
eenance OF their parity in effccting
exchange. IL constitutes the primer.
cal safeguard for the protection OF
our currency against the depreciation
which the experience Of all countries
has shown would otherwise result
from the attempt to use two legal
tender coins of the same dcnomina-
ton, but Of unequal value. IL the
limitation were removed, confidence
In tue ability OF the government To
preserve equality in the ~cXchangcablc
value of the CONS would he destroyed
aud the parity would he lost long be.
fore the amount of silver coinage had
become really excessive.
with free and unlimited coinage
OF silver son ccoun of private
individuals and corporations, the gov
erSmont would he under no moral
obligation to maintain the parity. and,
moreover, IL would be una BILE to do SO,
because the volume OF the over valued
silver forced into the circulation by n
legal Lender provision would soon ex-
pei gold from the country or put
such u premium upon II hat IL would
be impossible to procure and hold in
tho treasury u sufficient o to
provide for the redemption Of silver
en- presentation.
THE GOVERNMENTS OBLIGATION.
"In order TO maintain the parity
under such conditions the government
would bs compelled from tho begin
ming to exchange gold for liver dol
lars, and their paper representatives,
whenever demanded: just as IL now
exchanges gold for its own notes when
demanded. and as the coinage of
silver dollars would be unlimited and
therefore increasing, n point would
soon be- reached where IL would be
impossible to continue the process OF
redemption. Tho implied obligation
OF the government 10 preserve the
value OF che money, which IL coins
from its own bullion and for its own
use and which IL forces its citizens to
receive In exchange for their property
and services has been supplemented
by two statutory declarations which
ri bstantially pledge the public faith
TO the maintenance of That policy.
1.-THE act of July -, 1890, after pro-
viding that the Secretary 81 the Treas
Try should. under such regulations as
he might prescribe, redeem the treas
ury notes issued in the purchase Of
silver bullion in gold or silver coin at
his discretion, declares that H. is the
established policy %! the United States
TO maintain the two metals on a parity
with each other upon the present
legal ratio, or such ratio as may he
provided by law and the act of No.
Vember /, 1893. again declares il 10 be
the policy of the United States to
continue the uso of both gold and
silver as standard money, and to com
both gold and silver into money OF
equal Intrinsic and interchangeable
value, such equality tn he secured
through international agreement, or
by such safeguards of legislation as
will insure the maintenance 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 aud
In the payment of debts
GOLD REDEMPTION.
with knowledge OF these as.ur-
hnces, the people have received these
coins and have relied confidently
upon the good faith OF their govern.
ment, and tho con ideucc thus inspired
has been "A most potent factor in tho
maintenance OF the parity. The pub.