The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-16

F. Holm, Louisville: Your letter asking how
the silver dollars, which contain quantity
OF bullion, commercially worth only "a cents
each, are maintained at parity with gold
Notwithstanding the fact that the government
uoes not directly redeem them or the GER
tlficates issued upon them in gold. is re-
cseIyeu, ana as great many inquiries upon
.he same subject are received by me daily
from d1nerent parts of the country which If
is is lmpractlcable to answer in detail, l will
eahe AuFanlase or your favor to answer
them all at once.
All the standard dollars issued from the
mints since the passage of the act of 1878
now amounting to more than s433 OO0 O000
nave been coined on public account from
bullion purchased by the government and are
legal tender In payment of all debts, public
anu private without regard to the amount
except when otherwise expressly stiDrlatad
In the contract between the parties. They
Deiong TO the government when coinsd and
they are paid out by the government ~ !.
parity with gold for property and services Of
ell kinds, and received from the peooie al
parity with gold in the payment of ali
pun puDnc aues and demands. The government
mas made no discrimination whatever between
tne COINS OF the two metals gold having been
PAID on its coin obligations, when yoii WIS
demanded, and silver having heen naid ,rhas
silver was demanded
. Under this policy the coinage has been so
limited, by law and the policy of the treas
ury department. that the amount coined has
not become so great as to drive the moro
valuable coin, gold out of use and Thus de-
stroy the basis of our monetary system: and
SO long as the two metals are of UNEQUAL
commercial value at the ratio established nv
law, this limitation upon the coinage is In nv
opinion; absolutely essential to the maintain
ance OF their parity in effecting exchanges
IL constitutes the principal Safeguard for tba
protect1on OF our currency against the de-
probation which, the experience of all com
trfes mas shown, would otherwise result from
the ttle attempt TO use two legal tender coins of
tne same denomination but of UNEQUAL value
II the limitation were removed, confidence in
the ability of the government to preserve
equaiily IN the exchangeable value of the
coins Would De destroyed and the parity would
be lost before the amount of silver coinage
had become really excessive. With free and
unlimited coinage of silver on account of pri
Vate individuals and corporations the govern
ment would be under no moral oblipation to
maintain the parity, and moreover it womb
De unable to do so, because the volume of
oyer-Yalued silver forced into circulation nv
legal tender provision would soon exneI
goid from the country or put such premium
upon II that It would be impossible to pro-
cure and hold in the treasury a sufac;ant
amount to provide for the redemption of siivar
on presentation - SA'ei
In order to maintain the parity under such
condltons, the government would be com
PEELED, from the beginning. to exchange eoIa
Tor silver dollars and their paper Representa-
yves whenever demanded, just as 1t now ex-
changes gold for Its own notes when da
manded, and, as the coinage of silver dolIars
would be unlimited and therefore constantly
increasing, point would soon be reached
mi tfr7fra -
process of redemption ''o
The implied obligation of the government
10 preserve the value of the money which It
coins from it's own bullion and for its nr =,
use and which 1t forces its citizens to reco,Ia
In exchange for their property and services
mas been supplemented by two statutory
t,e.1i aeciaratoas which substantially pledge the
pubic laith to the maintenance Of that nolicv
The act Of July IA, $780, after providing that
the secretary of the treasury should I,ndor
sucn regulations as he might prescribe, re-
QEem
chase OF silver bullion, In gold or silver coin
at MS discretion, declares that It is .stha
es.annsned policy Of the United States to
maintain the two metals on parity with each
otner upon the present legal ratio. or such
ratio as may be provided by law and the
&C, ss OF NOV. 1893. again declares it to be
tne poilcy OF the United States to conttn1Ie
the use Of both gold and silver as STANDARD
money and to coin both gold and silver
INTO money OF equal intrinsic and interchange
able value, such equality to be secured
through international agreement or NV such
safe- e-guards Of legislation as will insure tha
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 markets
and In the payment of debts.n
with knowledge of these assurances. the
people have received these coins and have
relied confidently upon the good faith Of
their government; and tie confidence thus
inspired has been most potent factor In the
nalntenance NAN OF the parity The public has
been satisfied that, so long as our present
monetary system Is preserved, the govern
ment will do whatever its moral obligations
ana express declarations required 1t to do,
and very largely as a consequence of this
confidence in the good faith of the executive
authorities the silver coins have not de-
preciated in value. It is not doubted that
whatever can be lawfully done to maintain
equality IN the exchangeable value of the
two metals will be done whenever 1t becomes
necessary. and, although silver dollars and
silver certificates have not, up to the present
time, been received in exchange fer gold
yet IL the time shall ever come wIIsH-the