The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1896-10-03
oARLlsLE ExPLAINs.
ShoWS How the Government Keeps Sill
yer Dollars at Par with Gold.


james P. Helm, Louisville, Ky.-My
Dear Sir: Your letter asking how the
silver dollars which contain quantity
Of bullion commercially worth only
about So cents each are maintained at
a parity with gold, Notwithstanding
the fact that the government does not
directly redeem them, or the certili-
Gates issued upon them, in gold, is re-
csived, and, as q great many inquiries
npon the same subject are addressed
TO me daily from different parts Of the
country, which it is impracticable to
answer in detail, / take advantage of
your favor to answer them all at once.
All the standard silver dollars issued
from the minis since the passage of
the act of 1878, now amounting to more
than $4S3, 0O0, 900, have been coined on
public account from bullion purchased
by the government, and are legal ten
der in payment of all debt public and
private, without regard to the amount,
except when otherwise expressly stipu-
lated In contract between the parties.
They belong to the government when
coined and they are paid out by the
government at 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 government
has made no discrimination whatever
between the coins of the two metals,
gold having been paid on its coin obi
cations when gold was demanded and
silver having been paid when silver
was demanded.
Under this policy the coinage has
been 80 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,
gold, out Of use, and thus destroy the
basis of our monetary system: and SO
long as the two metals are of unequal
commercial value, at the ratio estab-
lished by law, this Limitation upon the
coinage is, in my opinion, absolutely
essential to the maintenance of their
parity in effeCting exchanges.
1t constitutes the principal safeguard
for the protection of our currency
against the depreciation which the ex-
perlence of all countries has shown
would otherwise result from the at
tempt to use two legal-tender coins of
the same denomination, but unequal
value. II the limitation were removed,
confidence In the ability Of the govern
ment to preserve equality in the ex-
changeable value of the coins would be
destroyed, and the parity would be lost
long before the amount of silver coin
age had become really excessive.
With free and unlimited coinage of
silver on account of private individuals
and corporation, 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 Overyalued silver forced into circu-
latiOp by legal tender provision
would soon expel gold from the coun-
try, 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 un-
der such conditions, the government
would be compelled from the begin,
ming to exchange gold for silver dollars
and their proper representatives when
ever demanded, just as it exchanges
gold for It's own notes when demanded;
and as the coinage of silver dollars
would be unlimited and therefore con-
stantly increasing a point would soon
be reached where it would be impossi.
BILE to continue the process of redemp-
ton.
The implied obligation of the gov
eminent to preserve the value of mon
ey which 1t coins from its own bullion
and fer its own use, and which 1t
forces its citizens to receive in ex-
change for their property and services,
has been supplemented by two statu-
tory declarations which substantially
pledge the public faith to the mainte-
nance Of that policy.
The act Of July IA, 1890, after provid-
ing the secretary of the treasury should,
under such regulations as he might
prescribe, redeem the treasury notes
issued in the purchase of silver bullion
in gold or silver coin at his discretion,
declares that it is 'the established pol.
icy 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 Nov. /, 1868, again de.
clares it to be "the policy Of the United
States to continue the use Of both gold
and silver as standard money, and to
coin both gold and silver on standard
money of equal intrinsic and inter-
changeable value, such equality to be
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