Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-09-16
CARLISLE'S LETTER
Senator Faulkner's Comments Upon
One of Its Statements.
ALLEGES 4 REVERSAL OF POLICY
How He Says 1t Will Affect the
Gold Reserve.
CH A n q z n Z E ID + ID

II
tanning the parity of the gold and silver
now in circulation, has caused some excite
ment among the democrats The feature
of the letter which is regarded of the
Utmost interest and almost startling in
its import is the following statement fore
shadowing the redemption Of silver dollars
in gold:
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 power with the
gold dollar. except by receiving it in ex-
change for the gold dollar, when such ex-
change is demanded, it will be his duty
to adopt that course"
This declaration. it is believed, will place
silver certificates and the silver dollars
now outstanding in the same relation to
Sherman notes. The int!mdtiOn that silver
woCli be redeemed In gold On demand, If
that were necessary to maintain the parity,
is likely to lead to the demand being made
frcm some quarters.
Senator FauI&ner's Comments.
Chairman Faulkner gave out a peppery
interview the subject this afternoon.
y Star reporter asked the Senator if he
had read the letter of the Secretary of the
Treasury addressed to Jas. 2. Helm of
Louisville, KY, from Bar Harbor, Me,
September l., 1916.
yes" said the Senator, II have read the
letter referred to and my astonishment is
only equal to my regret that the Secretary
of the Treasury should have announced
policy which invites q depreciation in our
currency and will at once encourage the
gold speculato tors and money lenders of the
country to additional raids upon our gold
reserve, with view of forcing the gov
eminent to continue issuing interest-bear-
ing bonds to carry out the policy suggested
in the letter of the Secretary of the Treas
ury. / shall not comment upon the reasons
which these gentlemen holding the views
of Mr.. Carlisle have as to why the silver
certificate and the silver dollar have today
in this country the same purchasing power
as the gold dollar. but ! cannot refuse to
express my absolute dissent from the pol
icy announced by Mr.. Carlisle as the one
which will govern the treasury in reference
to redeeming silver certificates and coined
silver dollars gold.
In a letter addressed to ne on the 26th
of August, 1888. Secretary Carlisle stated
follows: SO far as 1 have been able to
ascertain. neither the Treasury Depart
ment nor any subtreasury has ever Leen
called upon TO redeem silver dollars in
gold. and such dollars have, in fact.
been redeemed in gold This statement
from the head of the Treasury Department.
made on the sith of August, 1896 shows
that the holders of silver certificates or
silver dollars have never entertained the
opinion that the contract on the face of
the cert11cdle, Whlcn expressly PROVIDES
for their redemption in silver dollars,
should be construed by the executive de-
partment emitting the holders to de-
mand gold dollars. and much less had any
one ever conceived the idea before that
the silver dollar. made by law legal ten
der in payment of all debts and in the dis
charge of all obligations, and designated
In the statute the standard money of
the country should be redeemed in any
other coin.
A Former Declaration.
$50 late as July 1. 1896, there was issued
under authority Of Mr.. Carlisle. for the in
formation Of the people of this country.
Treasury Circular. No. 123 in which the
policy of the government and the Treasury
Department was announced over Mr.. Car
Isles own signature. In this circular. on
page II. under the head of Redemption,
he says: Gold coins and standard silver
dollars, being standard coins of the United
States, not redeemable.' Silver certif-
Gates are receipts for standard silver dol
lars deposited. and are redeemable in such
dollars only
win not this public declaration. for the
first time in the history of the Treasury
Department, of a course which reverses its
entire policy as to this part of our circula L
ing medium, tend to force a depreciation OF
that character Of currency, will not those
now interested in forcing the Treasury De-
partment to carry out this policy pro-
claim at once to the country and to the
world that the hundred millions of dollars
of gold reserve, placed by law in the treas
ury for the purpose of redeemng United
States notes, cannot meet the demand upon
IL, and that more bonds must be issued to
maintain 1t and to enlarge II, as then, has
been imposed upon it the additional bur-
den of the redemption of Ss31 .259,5U3 OF
silver certificates, and $25,115,99S Of silver
dollars now in circulation, aggregating
1886. .fS5.5O7, which. with the United States
notes and treasury notes under the act of
1880, place total burden upon the gold re-
demption fun of SS59, 799, S23.
Effect of the Recent Announcement
Under the former rulings of the treas
ury providing for the redemption of United
States and treasury notes aggregatins
s416,364.316 out of the gold reserve of one
hundred millions, it was questionable
whether the redemption fund was not toe
small to give confidence to the ability OF
the government to sustain this policy, anG
now, having doubled the liability upon the
gold reserve what effect will the announce
ment by the Secretary of the Treasury
have upon the confidence of the people ir
United States notes have become scare,
and are not row so easily cornered for the
purpose of drawing large sums of golC
from the federal treasury, but the silver
certificates and silver dollars are the money
found almost exclusively In circulation a
this time, and can be easily and rapil!
accumulated for the purpose of demanding
of the treasury their redemption in gold
under the declaration of the futur,
course of the Treasury Department. 1
presents more definitely and clearly thar
any action ever before taken by the treas
ury Its intention to place this government
absolutely under the control of the bankers
of this country and Europe, and ieav,
to them the determination as to the tim,
and amount of the increase of the inter
est-bearing bonds of the United States, t,
maintain the gold standard. 1 have M
hesitation In saying that Il this Is the pol
Icy to govern the United States in :he fu
ture under the gold standard. am NOR,
determined than ever, and / believe tn,
people will be, to see that the annihila
ton of values and destruction of prop
erty by executive construction of he cur
rency laws, and the turning over of th
financial interests Of seventy millions o
our people to a half dozen bankers in th
country and Europe shall cease. come I,
end. This emphasizes the necessity a
well as the duty of those who bel:ev
in American financial independence TO sup
port the American policy represented b.
the democratic ticket"