The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-09-16
GOLD FOR SILVER.
If Ever Demanded It Will Be
Given Out,
So Says Secretary Carlisle In a
Recent Letter.
TALKS ABOUT PARITY.
He Says Confidence Has Large
ly Maintained 1t.
Declares His Policy In Regard
to Gold Payments.
TALKS ABOUT PARITY.

Mr.. James P Helm, Louisvil1e-Nfy
Dear S1r:-YOur letter asking how sill
yer dollars which contain a quantity of
bullion commercially worth only about
% cents each, are maintained at a par
lty with gold, Notwithstanding the fact
that the government 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
QlI1erent parts of the country, which it
is impracticable to answer in detail
VIII take advantage of your favor to
answer them all at once
The standard silver dollars issued
from the minis since the passage of the
act of 1873, now amounting to more
than $433 600, 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 stipulated ex-
pressIy in the contract between the
parties. They belong to the govern
ment when coined and they are paid
out by the government at a parity with
gold for property and services of all
kinds and received from the people at
a parity with gold in the payment of all
public dues and demands. The govern
ment has made no discrimination what
ever between the coins Of the two met
ais, gold having been paid upon it's
coin obligations when gold was de-
manded, and silver having been paid
when silver was demanded.
OnQeT TINS pO4cY the coinage mas
been so limited by law 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 coin
age is, in my opinion, absolutely essen
tial to the maintenance of their parity
in effecting exchanges.
''This constitutes the principal safe
guard of the government for the protec-
ton of our currency against the de-
probation which the experiences of all
countries has shown it would otherwise
suffer from the attempt to use two le
gal tender coins of the same denomina-
ton but of unequal value. If the limita-
ton were removed, confidence in the
ability of 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 become
really excessive. With free and I'M
limited coinage of silver on account of
private individuals and corporations.
the government would be under no
moral obligation to maintain the pari-
ty, and moreover, it would be unable to
do so, because the volume of OVer-val-
ued silver forced into the circulation
by legal tender provision would soon
expel gold from the country, or put
such a premium upon it that 1t 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 I'M
der such conditions, the government
would be compelled from the beginning
to exchange gold for silver dollars and
their paper representative whenever
demanded; just as it now exchanges
gold for it's own notes when demand
ed; and as the coinage of silver dollars
would be unlimited and therefore con-
stantly increasing a point would soon
be reached at which it would be impos-
sible to continue the process of redemp-
ton. The implied obligation of the
government to preserve the value of
the money which it coins from it's own
bullion and for it's own use and which
it forces its citizens to receive in ex-
change for their property and services
has been supplemented by the whole
statutoru dealings which sUbstan-
TALLY pledge the public faith to the
maintenance of the policy. The act of
July IA, 1890, after providing that the
secretary of the treasury under special
regulations as he might prescribe re-
deem the treasury notes issued in the
purchase of silver bullion in gold or
silver coin at his discretion, declares
that it is the established policy of the
United States to maintain the two met
ais on a parity with each other upon
the present legal GaLlO OF SuCn ratio as
may be provided by law
And the act of November 1, 1893,
again declares it to be the policy of
the United States to continue to use
both gold and silver as standard mon
ey and to coin both gold and silver
into money of equal intrinsic and ex-
changeable value, such equality to be
secured by international agree
ment or by such safeguards of 1egisla-
ton as will insure the maintenance of
the parity Of value of the coins of the
two metals, and the equal power of
every dollar at all times in the mar
kets and in the payment of debts.
with knowledge of these assur-
surances. the people have received
these coins and have relied confident
1y upon the good faith of their gov
eminent; and the confidence thus in
spired has been a most potent factor
in the maintenance of the parity. The
public has been satisfied that so long
as our present monetary system is pre-
served, the government will do what
ever its moral obligations and express
declarations prescribe for it to do and
very largely as a consequence of the
good faith of the executive authorities,
the silver coins have not deprecated
in value. 1t is not doubted that what
ever can be lawfully done to maintain
equality in the exchangeabIe value of
the two metals will be done whenever
it becomes necessary.
Silver dollars and silver certificates
have not up to the present time been
received in exchange for gold yet, if
the time should ever come when the
parity can not be otherwise maintain
ed, such exchanges will be made. It
is the duty of the secretary of the
-s.,Ir-