The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-16
Nothing Could Prevent Depreciation
of the White Metal Dollar Under
Free COiuage.
Mr.. BYNUM'S APPOINTMENTS
SUBCOMMITTEES OF THE NATIONAL
DEMOCRATIC COMMITTEE.
Charles j. Canda Made Chairman of,
Finance and John Il. FrenZeI Ap-
pointed Treasurer.

BAR HARBOR, Ne, Sept. 15-Secretary
Carlisle has written the following letter on
the subject of the maintenance of the parity
between gold and silver:
Mr. James P. Helm, Louisville, KY.
My Dear Sir-Your letter asking how
the silver dollars which contain a quantity
of bullion commercially worth only about
So cents, are maintained at parity with
gold Notwithstanding the fact that the gov
ernment does not directly redeem them or
the certificates issued upon them in gold,
is received, and, as great many inquiries
upon the same subject addressed to me
daily from different parts of the country,
which it is improbable to answer in detail,
L will take advantage of your favor to
answer them all at once
"Au the standard silver dollars issued
from the mints since the passage of the
act of 1873 amounting to more than
$433, 900, have been coined on public ac-
count from bullion purchased by the gov
ernment and are legal tender in payment
of all debts, public and private, without
regard to the amount, except when other
wise expressly stipulated in the contract
between the parties. They belong to gov
ernment when coined, and they are paid
out by the government at a parity with
gold for property and services of all kinds,
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 having
been paid upon it's coin obligations when
gold was demanded and silver having been
paid whenssiver was demanded.
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 to drive
the more valuable coin, gold, out of use,
and thus destroy the basis of monetary
system, and SO long as the two metals are
| of unequal commercial value, at the ratio
| established by law, this limitation upon the
| coinage is, in my opinion, absolutely essen
! tial to the maintenance of their parity in
| effecting exchanges. 1t constitutes the
| principal safeguard for the protection of
our currency against the depreciation
| which the experience of all countries has
| shown would otherwise result from the at
| tempt to use two legal-tender coins of the
| same denomination but of unequal values.
| If the Limitation were removed confidence
| in the ability of the government to pre-
| serve 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 become really exces-
| sive.
COULD NOT MAINTAIN PARITY.
with free and unlimited coinage of sill
| yer on account of private individuals and
| corporations the government would be un-
der no moral obligation to maintain the
parity, and, moreover, it would be unable
| to do So because the volume of overvalued
| silver forced into the circulation by legal
| tender provision would soon expel gold
from the country, put such a premium
upon it that it would be impossible to pro-
cure and hold in the treasury sufficient
amount to provide for the redemption of
silver on presentation In order to main
tain the parity under such conditions the
government would be compelled from the
beginning to exchange gold for silver dol
lars, and their paper representatives,
whenever demanded, just the same as it
now exchanges gold for its own notes
when demanded; and as the coinage of sill
yer dollars would be unlimited and there
fore constantly increasing. point would
socn be reached where it would be impos-
sibe to continue the process of redemp-
ton.
THE implied obligations of the govern
ment to preserve the value of the money
which it coins from its own bullion for it's
own use, and which it forces it's citizens
to receive in exchange for their property
and services, has been supplemented by
the two statutory declarations which SUBJ
stantially pledge the public faith to the
maintenance of that policy. The act of
July IA, 1890, after providing that the Sec
retary of the Treasury should under such
regulations he might prescribe redeem
the treasury notes issued in the purchase
of silver bullion, in gold silver coin at
his discretion, declares that it is the es-
tablished policy of the United States to
| Y1air1 f1ir he lie
each other upon the present legal ratio
or such ratio as may be provided by law
and the act of Nov. l. 1898, again declares
it to be the policy of the United States to
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 equality to
be secured through international agree
ment or by such safeguards of legislation
as will insure the maintenance of the par
ity of value of the coins of the two metals
and the equal power of every dollar at all
times in the markets and in the payment
OF debts.
PUBLIC NOW HAS FAITH.
with knowledge OF these assurances the
people have received these coins and have
relied confidently upon the coed faith of
their government; and the confidence thus
inspired has been a most potent factor in
the maintenance of the parity. The public
has been satisfied that SO long as our pres
ent monetary system is preserved the gov
ernment will do whatever its moral obliga-
tions and express declarations require ii to
do, and very largely as a consequence of
this confidence in the good faith of the
executive authorities the silver coins have