The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1896-09-23
Silver Dollars.

Silver Dollars.
The following letter, setting forth the
real meaning and the facts about free
coinage of silver, has been written by
Secretary Carlisle from his summer re-
treat in Bar Harbor, Maine, and adj
dressed to James p. Helm, Louisville,
Kentucky:
My Dear Sir:-Your letter asking
how the silver dollars, which contain q
quantity of bullion comm ercially worth
only about fifty-three cents each,
are maintained at parity with gold,
withstanding the fact that the gov
eminent does not directly redeem them,
or the certificates issued upon them,
in gold, is received, and, as a great
many inquiries upon the same subject
are addressed to me daily from differ
ent parts of the country, which it is inn
practicable TO answer in detail, l will
take advantage of your favor to answer
them all at once:
All the standard silver dollars issued
from the minis since the passage of the
act of 1878, now amounting to more
than $433 900 900, have been coined on
public account, from bullion purchased
by the government, and are legal ten
der in payment of all debts, public and
private, without regard to the amount,
except when otherwise expressly stipu-
lated in the contract between the par
ties. 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 public
dues and demands.
The government has made no dis
elimination whatever 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 80 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 use, and thus destroy 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 maintenance of their parity in
effecting exchanges. 1t constitutes the
principal safeguard for the protection
of our currency against the deprecia-
ton which the experience of all coun-
tries has shown would otherwise result
from the attempt to use two legal ten
der coins of the same denomination but
of unequal value.
If the limitation were removed conf
in af ha
to preserve equality in the exchange
stroyed, and the parity would be lost
long before the amount of silver coin
age had become really excessive.
With free and unlimited coinage of
silver on account of private individuals
and corporations the government would
be under no moral obligation TO main
tain the parity, and, moreover, it would
be unable to do so, because the volume
of overvalued silver forced into circu-
lation by legal tender provision would
soon expel gold from the country, or
put such premium upon it that ii
would be impossible to procure and hold
in the treasury a sufficient amount to
provide for the redemption of silver on
presentation. In order to maintain the
parity under such conditions the gov
eminent would be compelled from the
beginning to exchange gold for silver
dollars, or their paper representatives
whenever demanded, just as it now ex.
changes gold for its own notes when de-
manded; and as the coinage of silver
dollars wonld be unlimited, and, there
fore, constantly increasing, poin
would soon be reached where il would
be impossible TO continue the process
of redemption.
The implied obligation of the gov
eminent to preserve the value of the
money which it coins from its own bull
lion, and for its own use, and which il
forces its citizens to receive in ex
change for their property and services
has been supplemented by two statutor.
declarations, which substantially pledge
the public faith to the maintenance o
that policy. The act of July ID, 1890
after providing that the secretary o
the treasury should, under such regula
tons as he might prescribe, redeem
the treasury notes issued in the pur
chase of silver bullion, in gold or silver
coin, at his discretion, declares that i
is the established policy of the United
States to maintain the two metals on
party with each other upon the presen
legal ratio, or such ratio as may be pro
vided by law" and the act of Novem
Der /, 1893, again declares it to be 18Th
Of ha TTnitaA Gtota IN