The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-09-17
DISCUSSES THE SUBJECT OF
GOLD AND SILVER PARITY IN
AN OPEN LETTER.
WOULD PAY OUT GOLD FOR SILVER
If 1t We're Necessary to Do So TO Main
tain the Parity Between the Two Met
als-Gold Would Soon Leave
the Country.

Bar Harbor Me-, Sept. 1o.-To Mr..
James =. Helm, Louisville, Hy.-My
Dear Sir: Your letter asking how the
silver dollars, which contain quantity of
bullion commercially worth only about
80 cents, are maintaided at parity with
gold, Notwithstanding the fact that the
government does not directly redeem
them or the certificates issued upon them,
is received, and as great many inquiries
on the same subject are addressed to me
daily from different parts of the country,
which it is impossible to answer i'll detail,
| will take advantage of your favor to
answer all of them at once.
"All of the standard silver dollars is
sued from the minis since the passage OF
the act of 1878, now amounting to more
than S435, 100000, have been coined on
public account from bullion purchased
by the government and are legal tender
in payment of all debts, public and prl-
vate without regard to the amount, eX-
cept when otherwise expressly stipulated
in the contract between the parties. They
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 III pay
ment of all public dues and demands
The public has made no discrimination
whatever between the coins OF the TWO
metals. gold having been paid upon its
coin obligations when gold was demand
IL hn hnln
silver was demanded. Under TINS pollcy
the coinage has been so limited by law
and the policy of the treasury depart
mont that the amount coined has not be-
come so great as to drive the more Valua-
BILE coin, gold, out of use, and thus de-
strOy the basis of our monetary system,
and so long as the two metals are OF I'M
equal commercial value at the ratlo es-
tablished by law this limitation OF the
coinage is, in my opinion, absolutely es-
sential to the maintenance OF thelr paiii-
ity in effecting exchanges. 1t consul
tutes the principle of safeguard Tor the
protection of our currency against the
depression which the experience Oh al
countries has shown would otherwise re-
sult from the attempt to use two legal
tender coins of the same denomination,
but of unequal value. If the hmltatlon
were removed confidence in the ability OF
the government to preserve equallty III
| the exchangeable value OF the CONS
! would be destroyed and the parity W0ulu
he lost long before the amount OF SILVER
coinage had become really excessive.
| With free and unlimited coinage OF SILVER
IN account of private individuals and cor
norations the government would be I'M
| dor moral obligation to maintain the par
itv and. moreover, it would be unable TO
! do so because the volume of oVer-Valued
| silver forced into circulation by legal ten
| der nroyisiOn would soon cXpel gold from
the country or put such premium on
| it that it would be impossible to procure
! and hold in the treasury Il sulncieht
| amount to provide for the redemption OF
silver on presentation. In ordef 10
| maintain the parity under such condl-
tions thr government would be compelled
| from the beginning to exchange gold LOT
| silver dollars and their paper representa-
tiycs whenever demanded, just as II now
exchanges notes for its own notes Wheh
| demanded. and as the coinage OF silver
dollars would be unlimited and therefore
constantly increasing, Il point would
soon be reached where it would be I'M
nossible to continue the process OF re.
| dcmption. The implied Obligation OF
the government to preserve the value OF
| the money which it coins from It's own
|
| it forces its citizens to receive Ill eA-
change for their property and services,
has been supplemented by two statutory
declarations which substantially pledge
| tho hubble faith to the maintenance OF
| that Dolicv, The act of July H. lS!o'
after providing that the secretary OF the
treasury should, under such regulations
as he might prescribe, redeem the treas
ury notes issued in the purchase OF 81
yer bullion in gold or silver com at ms
| discretion, declares that it is the eStaD-
lished policy of the United states .;t 10
maintain the two metals on parity WIN
| each other on the present legal ratio, OF
| such ratio as may be provided by law,
and the act of November !, 1888, again
| declares il to be the policy of the United
| STATES to continue the use OF Doth gold
and silver as standard money, ana 10
coin both gold and silver into money, OF
equal intrinsic and eXchangeable value
such equality to be secured through inter
national agreement or by such saie-
| guards of legislation as will insure the
maintenance of the parity or value vi
| coins of the two metals and the equal
movers of all dollars at all times in the
| markets and in the payment OF debts
with knowledge of these assurances
the nooDle have received these CONS and
| have relied confidently upon the good
| faith of their government and the conf
dence thus inspired has been most po'
tent factor in the maintenance OF the par,
ity. The public has been satisfied that
| so long as our present money system If
preserved the government will do what
ever its moral obligation and express
declarations require it to do. and very
largely in consequence of its confidence
in the good faith of the executive author
tiles the coins have not deprecated III
value. 1t is not doubted that whatever
can be lawfully done to maintain the
equality in eXchangeable value of the
two metals has been done whenever ii
becomes necessary, and although silver
dollars and silver certificates have, NJ
to the present time, not been received III
| exchange for gold, yet if the time shall
ever come when the parity can not be
maintained, such exchanges would be
made. 1t is the duty of the secretary OF
the treasury and of all other public Off
| Gals to execute in good faith the policy
declared by congress- and whenever he
| shall be satisfied that the silver dollar
can not be kept equal in pur'
chasing power with gold dollars
except by receiving it in exchange fol-
gold dollars when such exchange is de
manded, it will be his duty to adopt that
course, but if our present policy is ad
borad IN and the coinage is kent within