Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-09-16
SECRETARY CARLISLE
Answers Numerous Questions Concerning the
Parity Of Gold and.Siiyer.

My dear sir: Your letter asking how,
silver dollars, which contain a uuan
THY of bullion commercially worth
only about 90 cents each, are main
tanned at parity with gold notwith-
standing the fact that the government
does not directly redeem them, or Ger
tiicates issued upon them, in gold, Is
received, and, as "a great many in
quiries upon the same subject are ad-
dressed to me daily from different
parts of the country, which it is i'm
! practicable to answer in detail, | Will
take advantage of your favor to an
swer them all at once;
| All standard silver dollars issued
| from the minis since the passage of the
| act Of 1873. now amounting to more
| than SA33, 600 900. have been coined on
the public account from bullion pur-
chased by the government, and are
legal payment of all debts, public and
private. without regard to amount. ex-
cept when otherwise expressly Stipu-
lated in the contract between parties.
They belong to the government when
coined, they are paid out by the gov
eminent at parity with gold for prop
crty and services of all kinds and re
ceived from the people at a parity with
sold in payment of public dues and de-
mands.
The government made no discrimna-
ton whatever between coins Of the
two metals gold having been paid on
it's coin obligations when gold was de-
mandcd and silver having been paid
when silver was demanded,
Under this policy coinage has been
81, limited Ia and The rtnliry- ff a.
treasury department. that the amount
coined has not become so great as to |
drive the more valuable coin gold out
OF use and thus destroy the basis Of
cur monetary system: and as long a.
the two metals are Of unequal CONNER
c!al value. at ratio established b.
law. this limitation upon coinage is. in
ny opinion, absolutely essential to tn
maintenance Of their parity in effect
ire exchanges 1t constitutes the prin-
yjpal safeguard for the protection %
cur currency against depreciation
which the experience Of all countries
has shown would otherwise result
from an attempt Ia use two legal ten
der coins OF the same denomination
but Of unequal value.
II the limitation were removed con-
ment 10 preserve an equality in cX-
Manageable value Of coins would be
destroyed and the parity would be lost
long before the amount Of silver coin
age had become really excessive. With
the free and unlimited coinage of sill
Yer on account OF private individuals
and corporations. the government
would be under no moral obligation to
(.
would be unable 10 do So because thu
volume of over-valued silver forced in
to circulation by the legal tender pro-
vision would soon eXpel gold from thg
country. or put such a premium upon
il that it would be impossible to pro
cure and hold in treasury a sufiicien,
amount to provide for the redemption
of silver on presentation.
To maintain the party under sucl
compelled from the beginning would b.
compiled from the beginning to eX
change gold for silver dollars, or Their
paper representatives. whatever de
manded. 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 in
creasing. point would soon be reached
|
tinue the process Of redemption. The
implied obligation Of the government
10 preserve the value Of the money
which it coins from its own bullion and
for its own use, and which if forces
its citizens to receive in exchange for
their property and services. has been
supplemented by two statutory declare
tions which substantially pledge the
-l,,+
policy.
The act of July "A. 1890 after provid
ing that the secretary should, under
such regulations as he might prescribe,
redeem treasury notes issued in the
purchase of silver bullion, in gold 81
silver coin at his discretion. declares
it is the established policy of the
United States TO maintain the tW0
metals on a parity With each other up
on the legal ratio or such ratio as may
be provided by law" and the act Of
November /. 1899, again declares ii t.
be the policy Of the United States t.
continue the use of both gold and sill
Yer as standard money and coin both
gold and silver into money n equal in
trinsic and eXchangeable value. such
equality to be secured through interna-
tiOnal agreement or by the safe guards
Of such legislation as Will insure tn
maintenance of the parity of value OF
coins of the two metals and equal
power Of every dollar at all times in
markets and in the payment Of debt.
With the knowledge OF these assuI
ances the people have received these
coins and relied confidently upon the
good faith Of their government: and
the confidence thus inspired has be-
come the most important factor in tho
maintenance Of the parity The public
has been satisfied that SO long as our
present monetary system is preserved
the government will do whatever its
moral obligations and express declara-
tons require it to do, and largely as A
consequence of this confidence in the
good faith of the executive authorities
silver coins have not denreCiated in
value. 1t is not doubted that whom
ever ii can he lawfully done to main
tain an equality in exchangeable value
of the two metals win be done when
ever it comes necessary, although sill
Yer and silver certificates have not up
10 >;