The Portland daily press., 1896-09-16
MAKES 1T PLAIN ENOUGH.
Secretary Carlisle Tells How Present
Silver Dollars

silver DOLLARS
Are Kept at a Parity with the Standard
Gold Dollars-with Free Coinage That
Would Be Impossible.
Washington. September 15.-Seoretary
Carlisle from his summer retreat in
Bar Harbor, Me-, has addressed the fol-
lowing letter to James 2. Helm, Louis
vile, KY.
My Dear 6ir-Your letter asking how
the silver dollars which contain the
quantity of bullion commercially wort b
only about 53 cents each are maintained
at parity with gold, notwithstanding
the fact that the government does not
directly redeem them or the certificates
issued upon gold, is received, and great
many inquiries upon the same subject
are addressed to me daily from different
parts of the country, which it is impran-
tioable to answer in detail,lan l will
take advantage of your favor to answer
them all at once.
All standard silver dollars, issued Fl ON
the mints since the passage of the act
of 1878, now amounting to more than $685.
600, 000, have been coined Oh public ac-
count, from bullion purchased by the
ment of all debts public and private
without regard to the amount, except
when otherwise expressly stipulated
in contract between the..parties.
They Lelong Ito the government when
coined. They are paid by the govern
ment at a parity with gold for ser
vices of all kinds and are received from
the people at parity with gold in pay
ment of all public dues and demands.
The Oovarumant vpada M diScrimipa.
tion whatever between the coins ofAthe
two metals, gold having been paid on
its coin obligations when gold was de-
manded and silver paid when silver 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 as to
drive the more valuable coin out of use,
and thus destroy the basis of our none
tary system, as the two metals are of un-
usual commercial value at the ratio es-
tablished by law.
This limitation upon coinage is, in
my opinion. absolutely essential to the
maintenance Of their parity In affecting
exchanges. 1t constitutes the principal
safeguard for the protection Of our cur
renoy against depreciation, which the
experience of all countries has shown
would otherwise result from the attempt
to use the two legal tender coins OF the
same denomination, but of unequal
value. If the limitation were removed,
confidence in the ability of the govern
ment to preserve the equality in ex-
changable.. value of the coins would
lost long before the amount of silver
coinage had become reallysexcessive. kE
With the free and unlimited coinagesof
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 over-valued silver forced into circu.
lation by the legal tender provisions,
would soon expel gold from the country.
10 maintain the parity under such
conditions the government would be
compelled from the beginning to ex-
change gold for silver dollars, or their
paper representatives whenever demand
ed, just as 1t now exchanges gold forsits
coinage of silver dollars would be un-
limited and therefore constantly increas-
ing, the point would soon be reached
where it would be impossib BILE to con-
tinue the process of redemption. The
obligation Of the government to preserve
the value of money which it coins, from
its own bullion and for it's own use,
which it forces it's citizens to receive in
exchange for their property and services,
has been supplemented by two statutory
declarations which substantially pledge
the public faith to the maintenance of
that policy.
The act of July IA, 1890, after provid.
ing that the Secretary of the Treasury
should under such regulations as ne
might prescribe, redeem treasury notes
issued in the purchase of silver bullion
in M c1 of h
declares it is the established policy
of the United States to maintain the
two metals on parity with each other
upon the present legal ratio, or such
ratio as may be provided by law, and
the act of November IL, 1898 again de-
declares it to be s'the policy of the Unit
ed States to continue the use of both
gold and silver as standard money, and
coin both gold land silver into money
of equal intrinsic and exchangable
value. such eQuality.to be secured through
international agreement, or by suoh
safeguards Of legislation as will insure
the maintenance of the parity of the
value of the coins of the two metals and
the equal power of every dollar at all
times in markets and In payment OF
debts.
With the knowledge of these assuran-
ces, the pt ople have received these coins
and have relied on the good faith of tine
government, and the confidence thus
inspired has become its most important
factor in the maintenace of the parity.
The public has been satisfied that as
long as our present monetary system
Is preserved the government will do
whatever it's moral obligations and ex-
press declarations require it to do. Very
largely as the consequence of this con-
fdence in the good faith of the executive
authority, silver coins have not depr eel
ated in value.
1t is not dou bted that whatever can
be lawfully done to maintain the equali-
ty in the exchangeable value of the two
metals will be done whenever it becomes
necessary. Although silver dollars and
silver certificates have not, up to the
present time, been received in exchange
Tor gold, yet if the time shall ever come
when the parity cannot be otherwise
maintained, such exchanges will be
made. 1t will be the duty of the Secre-
tary of the Treasury and all other public
officials to execute In good faith the poll
cy declared by. Congress whenever
he shall be satisfied that the
silver dollar cannot be kept equal in
purchasing power with the gold dollar,
except by receiving it in exchange for
the gold dollar, when suoh exchange be
don, andad If will ha his dutv tn odo,,+