Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1896-09-19
PARITY OF MONEY METALS,
Secretary Carlisle Writes a Letter TelIInr
How IL IL Maintained,

Secretary Carlisle Writes a Letter Telling
| How It Is Maintained.
| WASHINGTON, Sept. 1G. - Secretary
Carlisle has addressed to one of his
Kentucky correspondents the follow
| ing letter:
James p. Helm, Louisville Ky:
| MY Dear Sir-Your letter asking how silver
collars which contain quantity OF bullion
commercially worth only about SO cents each
are maintained at parity with gold, notwith-
standing the fact that the government does not
| directly redeem them or the certificates issued
upon them In gold, Is received, and as q great
many inquiries upon the same subject are ad-
dressed to me daily from different parts of the
| country which 1t is impracti cable to answer in
detail, will take advantage of your favor to
answer them oil at once All the standard sill
yer dollars issued from the mints since the
passage of the act of ls7S-now amounting to
more than S433, 900, ,OOO-have been coined on
public account from bullion purchased by the
government, and are legal tender in payment
OF all debts public and private without regard
10 the amount, except when expressly stipu-
lateu In the contract between the parties. They
oelons TO the government when coined and they
are paid out by the government at parity
with gold for property and services OF all kinds
ana received from the people at parity with
gold in the payment OF all public dues and de-
mands.
The government has made no discrimination
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
thls policy the coinage has been so limited by
law and the treasury department that the
amount coined has not become so great rs to-
orlve the more valuable coin-gold-out OF use
ana thus destroy the basis of our monetary
system; and so long as the two metals are of
unequal commercial value, at the ratio estnb-
ilsned by law, this limitation upon the coinage
lS In my opinion, absolutely essential to the
maintenance OF their parity in efecting ex-
chahges 1t constitutes the principal safe
guard for the protection OF our currency against
tne depreciation which the experience OF all
countries has shown would otherwise result
from the attempt to use two legal tender coins
OF the same denomination, but of unequal value.
IL tne limitation were removed confidence in
the ability of the government to maintain
equality In the eXchangeable value of the coins
would be destroyed and the parity would lie
lost long before the amount of silver coinags
had become really excessive. With free and
unlimited coinage OF silver on account of pri-
Vate individuals and corporations the govern
menu would be under no moral obligation to
maintain the parity and, moreover it would
ne unable to do so, because the volume Of over
valued silver forced into the circulation by a
le8al tender provision would soon expel gold
from the country, or put such premium upon
IL bhat III would be impossible to procure and
hold In the treasury a sufficient amount to pro-
Vlue Tor the redemption OF silver on presenta-
tion. In order to maintain the parity under
such conditions the government would be COM
PEELED from the beginning to exchange gold for
silver dollars and their paper representatives
whenever demanded, just as 1t now exchanges
gold for its own notes when demanded; and as
the coinage OF silver dollars would be unlim-
lteu, ana therefore constantly increasing n
point would soon be reached where 1t would be-
impossible to continue the process OF redemp-
tion.
The implied obligation OF the government to
preserve the value of the money which It coins
from Its own bullion and for it's own use and
which IL forces it's citizens to receive in ex-
chahge Tor their property and service, has been
supplemented by two statutory declarations
which substantially pledge the public faith to
the maintenance OF that policy. The act OF
July IL, 1869, after providing that the secretary
OF the treasury should, under such regulations
as ne might prescribe, redeem the treasury
notes issued in the purchase of silver bullion
In gold or silver, at his discretion, declares
that 1t 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 l. 1893 again declares it
to be THE policy OF the United States to con-
tinue the use of both gold and silver as stand
ard money and to coin both gold and silver into
money OF equal intrinsic and exchangea BILE
Value, such quality to be secured through in
ternational agreement, or by such safeguards
OF Legislation as will insure the maintenance
OF the parity of value OF the coins OF the two
metals and the equal power OF every dollar au
all times in the markets in the payment of
debts"
1t is the duty of the secretary of the TREASURY
and OF all other public officials to execute in
good faith the policy declared by congress-, and
whenever he shall be satisfied that the silver
dollar cannot be kept equal in purchasing pow
er with the gold dollar except by receiving 1t in
exchange for the gold dollar, when such ex-
change is demanded, it will be his duty to adopt
that course But If our present policy is ad-
hered to and the coinage is kept within reason
able limits the means heretofore employed for
the maintenance of the parity will doubtless be
found sufficient in the future, and our silver
dollars and silver certificates will continue to
circulate at par with gold, thus enabling the
people to use both metals instend of one only.
as would be the il the parity were de-
stroyed by free coinage j. G. CARLIsIE