The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1896-09-23
THE HON. JOHN C.
Explains The Existing Parity In a
Letter TO Mr.. James p. Helm,
Louisville.
1t IL On a Parity With All of His
Latter Day Utterances.
Silver A Legal Tender For All Debts.

| w dShth nun NY WI
James p. Helm, of Louisville:
Your letter asking how the silver dol
lars which contain quantity of bullion,
commercially worth about fifty-three
cents each, are maintained at a parity
with gold, notwithstanding the fact that
the Government does not directly re-
deem them, or the certificates issued up
on them, in gold, is received, and as a
great many inquiries NJ on the same sub
ject are addressed to me daily from
different parts of the country, which it is
impracticable to answer in detail, | will
take the advantage OF your favor to ans
wer them all at once.
All the standard silver dollars issued
from the minis since the passage of the
act OF 1873, now amounts to more than
1888 900 900, have been coined on public
account from bullion purchased by the
Government, and are legal tender in pay
ment of all debts, public aud private,
without regard to the amount except
when otherwise expressly stipulated in
the contract between the parties. They
belong TO the Government when coined
and they are paid out by the Government
at a parity with gold for property and
services OF all kinds, and rec iv d from
the people at parity with gold in the
payment of all public dues and demands.
The Government has made no discrimi.
| nathan hat 10 r
the two metals, gold having been paid
upon its coin obligations when gold was
demanded and silver having been paid
when silver was demanded. Under this
policy the coinage has been so limited by
law and the policy OF the Treasury De-
partment 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 I'M
equal commercial value, at the ratio Is.
tabished by law, this limitation upon
the coinage is, IN my opinion, alb
solutely essential to the maintenance of
their parity in eflecting exchanges. 1t
constitutes the principal safeguard for
the protection of our currency against
the depreciation which the exp rience
OF all countries has shown would other
wise result from the attempt to use two
legal tender coins of the same deuomi-
nation, but of unequal values.
If the limitation were removed conf
dence in the ability If the Government
to preserve 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 b come
really excessive. With free aud unlim-
tied coinage of silver ON account OF pri
vate individuals and corporations the
Gov, rnment would be under no moral
| obligation to maintain the party, and,
more over, it would be unable to do so,
| because the volume OF overvalued silver
| forced into circulation by legal tender
provision would soon expel gold from
the country or put such a premium upon
it that it would be impossible to procure
and hold in the Treasury a sufficient
amount to provide for the redemption of
silver upon presentation. In order to
maintain the parity under such cond-
tions the Government would be COM
PEELED from the beginning to exchange
gold for silver dollars, aud their paper
representatives, whenever demanded,
Just as il now exchanges gold for its own
notes when demanded, and as the coin
age OF silver dollars would be unlimited,
and, therefore, constantly increasing,
point would soon be reached where it
would be impossible to continue the pro.
cess OF redemption The implied obliga-
ton of the Government to preserve the
value OF the money which it coins from
its bullion and for its own use and which
it forces its citizens TO receive in ex-
change 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 II, 1890, after provd-
ing that the Secretary OF the Treasury
should, under such gulaiions as he
might prescribe, redeem the Treasury
notes issued in the purchase OF silver
bullion, in gold or silver coin at his dis
cretion, declares that il is "the establish
ed policy OF the United States to main
tain the two metals on aparity with each
other upon the present legal ratio or
such ratio rs may be provided by law
And the act OF November |, 1898, again
declares it to b, "the policy OF the
United States to continue the use OF both
gold and silver ss standard money, and
to coin both gold and silver into money
Of equal intrinsic aud exchangeable value,
such equality to be secured through in
ternational agreement or by such safe.
guards OF legislation as will insure the
maintenance OF the parity Of value of the
coins Of the two metals aud the 6qnal
power Of every dollar at all times in the
markets and In the payments Of debts"