The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-09-22
CARLISLE on THE PARITY.


In his letter to Mr. James P. Helm,
Secretary Carlisle had very considerable
to say about the maintenance of the
parity between gold and silver. He
said that with free and unlimited coin
age Of silver on account of private indi-
viduals and corporations, the govern
ment would be under no moral obliga-
ton to maintain the parity, and, more
over, it would be unable to do so be-
cause the volume of overvalued silver
forced into circulation by a legal ten
der provision would soon expel the gold
from the country or put such a prem
lum upon it that it would be impossible
to procure and hold in the treasury a
sufficient amount to provide for the re-
demption of silver on presentation;
that in order to maintain the parity
under such conditions the government
would be compelled from the beginning
to exchange gold for silver dollars and
their paper representatives whenever
demanded, just as it now exchanges
gold for its own notes when demanded,
and as the coinage of silver dollars
NOuAQ DG OltlllIANGQ anu liAGI Z CO1-
stantly increasing, a point would soon
be reached where it would be impossi-
bic to continue the process Of redemp-
ton.
No one asks that the government
assume any moral obligation in regard
to free silver. The secretary assumes
that free silver would drive out gold,
H. for For.
his statement he would doubtless invoke
Gresham's law. But what he states
would be an assumption still.
Free coinage of silver does not con-
template the redemption OF silver dol
lars in gold; it means that silver, equally
with gold, shall be a money of ulti-
mate redemption.
The secretary further says:
THE implied obligation of the gov
eminent to preserve the value OF the
money which it coins from its own bull
lion and for its own use and which it
forces its citizens to receive in exchange
for their property and services has been
supplemented by two statutory declara-
tons which substantially pledge the
public faith to the maintenance of that
policy The act of July Il, 1890, after
providing that 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 policy of the United
States to maintain the two metals on
parity with each other upon the pres
ent legal ratio. Or such ratio as may be
/ provided by law And the act of No
! vember l, 1893 again declares it to be
/ the policy of the United States to con-
( tinue the use of both gold and silver as
standard money, and to coin both gold
and silver into money of equal intrinsic
and exchangeable value, such equality
| to be secured through international
! agreement or by such safeguards of leg
islation 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
That statement about the govern
ment forcing its citizens to take these
silver dollars in exchange for their
property and services will bear a little
looking at Wherein does this policy
of the government under the acts of 1886
and 1898 and its policy under the act Of
April ?, 1892. differ? Section 16 of
that act says:
"And be it further enacted. That all
the gold and silver coins which shall
have been struck at, and issued from
the said mint, shall be a lawful tender
in all payments whatsoever etc.
There is nothing in the act about
it being -the established policy of the
United States tc maintain the two met
ais on a parity" But during all the
years from 1892 to 1873, under free coin
age. the parity was thing that took
care of itself and did not place any
moral or other obligation upon the gov
eminent. The secretary offers no ex-
plantations of this fact; if he had. it
would have destroyed the value of his
other facts for the purposes of his the
ory. Gold and silver We're maintained
on a parity from 1892 to 1873 because
there was free coinage of silver and
every dollar coined was legal tender
Restore the conditions that existed prior
to 1873 and the results prior to 1873 will
be restored.
THE BANKERS TO BE SfUZZLED.