The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-09-19
70 MAINTAIN PARITY.
Secretary Carlisle Expiaines the Policy
of the Government.

Harbor, Me-, has addressed 10 one of
his kentucky correspondents the fol
lowing letter:
"Mr. James +. Helm. Louisville. Kv.-My
Dear Sir: Your letter asking how the sill
yer dollars. which contain q quantity OF
bullion commercially worth only about %
cents each. are maintained at parity
with gold Notwithstanding the fact that
the government does not directly redeem
them, c. the certificates issued upon them.
I'm gold, Is received. and. ms great many
inouiries upon the same subject are adj
dressed 20 me daily from d'nerent parts
OF the country, which IL ~ impracticable
TO answer IN detail, Will take advantage
Of your favor to answer them all at once.
IAN the standard silver dollars issued
from the minis since the passage OF the
act OF 1878 now amounting TO more than
Sl33 OO0. 600 have been coined on public ac-
count from bullion purchased by the gov
eminent. and are legal tender In payment
OF all debts, public and private, without
regard TO the amount cxcept when other
wise expressly stipulated In the contract
between the parties. They belong TO the
government when coined and they are paid
out by the government AZ parity with
gold for property and services OF all kinds.
and received from the people at a parity
with gold in the payment OF AL public dues
and demands.
THE government has made no discrm-
nation between the coins q the two metals,
gold having been paid on its coin obliga-
lions when gold was demanded. and silver
having been paid when silver was de-
mandcd Under this policy the coinage
has been so limited by law and the policy
OF the treasury department that the
amount coined has not becOiie so great as
TO drive the more valuable cCin. gold, out
Of use. and thus destroy the basis OF our
monetary system ana so long as the two
metals are OF unequal corr mcrcial value,
ut the ratio established by law. this limi-
tation upon the coinage Is. In my opinion,
absolutely essential 10 tho maintenance
OF their parity in emecting exchanges. IL
constitutes the principal SAFE guard for the
protection OF our currency against the de-
preciation which the eNperisncc or all coun-
tries has shown would otherwise result
from the attempt 10 use two legal tender
coins OF the same denomination. but of
UNEQUAL value. III ths limitation were re-
moved, confidence I'm The ability OF tho gov
eminent 10 preserve equal.ty In the eN-
changeable value Of the ccins would be
destroyed and the parity would be lost
long before the amount % silver coinage
had become really excessive.
with free and unlimitod coinage Of sill
yer on account OF private individuals and
corporations the government would be
under no moral obligation 20 maintain the
rarity and. moreover. II would be unable
10 do So because the volume OF over
a legal tender provision would soon cNpcl
gold from tae country or put such a pre-
MUM upon Il that Il wouii be impossible
20 procure and hold In the treasury a suf-
ncient amount 10 provide for the redemp-
ton OF silver on presentation. In order to
maintain the parity under such conditions
the government would be compelled from
the beginning 20 Exchange gold for silver
dollars and their paper representatives
whenever demanded. just as Il now OK
u f4a 81 ~ tlt.4.. -
handed and. as the colnage OF silver dol
lars would be unlimited. ard. therefore.
constantly increasing, a pnin. would soon
bc reached where I would be- impossible 10
continue the process OF redemption
"'rhe implied obligation Of the govern
ment to preserve tie value ~ the money
which IL coins from it's own bullion and
for it's own use, and which forces its clti-
zens TO receive In exchange for their prop
erty and service had been supplemented
by two statutory declarations which sub
stantially pledge the public faith TO the
maintenance OF that policy. The act OF
July lI, 1880, after providing that the Sec
rotary 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 at his
discretion, declares that II IL the estab-
lished policy OF the United States 10 main
tain the two metals on a parity with each
other upon the present legal ratio, or such
ratio as may be provided by law" and
the act of November !, 1898. again declares
Il 20 be the policy of the United States TO
continue the use of both gold and silver as
standard money and 10 coin both gold and
silver into money o. equal Intrinsic and ex-
changeabie value such quality TO be Sc
cured through international agreement. or
by such safeguards OF legislation as VIII
insure the maintenance OF the parity OF
value OF the coins Of the two metals and the
equal power OF every dollar az all times In
the markets In the payment OF debts
with knowledge CT these assurances the
people have received these coins and have
relied confidently upon the good faith OF
their government, and the confidence thus
inspired has been most Important factor
I'm the maintenance or the parity. The pub
lie has been satisfied that, 40 long az the
present monetary system Is preserved, the
government Will do whateve.' It's moral OBJ
legations and expressed declarations re-
Quire Il TO do. and very largely a a conse-
quenco OF this confidence IN the good faith
OF the executive authorities the silver coins
have not deprecated I'm value. IL Is not
doubted that whatever can be lawfully
done TO maintain equality In the exchange
able value OF the TWO metals will be done
whenever Il becomes necessary and al
though silver dollars and silver certificates
have not, up 20 the present time been re-
ceived ia exchange for gold, yet n the time
shall ever come when the parity cannot be
otherwise maintained such exchange will
be made II Is the duty OF the secretary
OF the treasury and OF all other public
officials 70 execute in good faith the policy
declared by congress, AMI whenever he
shall be satisfied that the silver dollar can
not be kept equal IN purchasing power with
the gold dollar except ~ receiving II In
exchange for the sold dollar when such
exchange IL demanded. II viii be his duty
TO adopt that course But " our present
policy i8 adhered 10 and the coinage il kept
within reasoiable limits. the means here
tofore employed for the maintenance OF
the parity viii doubtless b, found suffi-
clent In the future and our silver dollars
and silver certificates VIII continue 10 cir
culate at par with gold. thus enabling the
people 10 use both metals instead OF one
only, as would be the case II the parity
were destroyed by free coinage.
j. @. CARLISLE" 2
ryNill Mr.. Bryan answer this ques-
ton? Under free coinage OF silver by
the United States will not a Mexican
atlVer dollar le ae xolun hle M an Amer