Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-09-24

(. Secretary Carlisle has written the fol-
lowing letter to Mr.. James z. Helm, of
3 Louisville, KY, On the subject of the
maintenance of the parity between gold
and silver
Your letter, asking how the silver dol
lars, which contain a quantity of bullion
commercially worth only about 53 cents
n each, are maintained at parity with
gold, Notwithstanding the fact that the
government does not directly redeem them
or certificates issued upon them, in gold,
il received, and, as great many inquiries
upon the same subject are addressed to
me daily from different parts of the coun-
try, which it is impracticable to answer
In detail, will 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
$443, 100000, have been coined on public
account from bullion purchased by the
government and are legal tender in pay-
ment of all debts, public and private, with
out regard to the amount, except when
otherwise expressly stipulated in the con-
tract 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 n
parity with gold in the payment of all
public dues and demands. The govern
ment has made no discrimination what
ever between the coins of the two metals,
gold having been paid on its coin obliga-
tions when gold was demanded, and silver
having been paid when silver was de-
manded.
Under this policy the coinage has been
SO limited by law and by 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 none
tary system. So long as the two metals
are of unequal commercial value, at the
ratio established by law, this limitation
upon the coinage is, in my opinion, abso-
lutely 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 experience of all
# countries has shown would otherwise re-
suit from the attempt to use two legal
tender coins of the same denomination,
but of unequal value. If the limitation
- were removed confidence in the ability of
the government to preserve equality in
the exchangeable value of the coins would
be destroyed and the parity would be lost
long before the amount of silver coinage
had become really excessive.
With free and unlimited coinage OF
silver on account of private individuals
and corporations, the government would
be under no moral obligation to maintain
the parity. and, moreover, it would he un
able to do so because the volume of over
valued silver forced into circulation by (
lpfrn tss,,, IN
the gold from the country or put such ;
premium upon it that it would be impos
sibie to procure and hold in the treasury
sufficient amount to provide for the re
demption of silver on presentation. Ii
order to maintain the parity under sucl
conditions the government would be com
PEELED from the beginning to eXchane,
gold for silver dollars and their pane
representatives whenever demanded, jus
as it now exchanges gold for its owl
notes when demanded, and as the coinag
of silver dollars would be unlimited nm,
therefore constantly increasing. a poin
would soon be reached where it would b
impossible to continue the process of re-
\ demption.
The implied obligation of the govern
Il ment to preserve the value of the none
which it coins from its own bullion an
for Its own use and which it forces il
N citizens to receive in exchange for thei
property and services has been supple
mented by two statutory declaration
which substantially pledge the public fait
10 the maintenance of that policy. Th
act of July IA, 1890, after providing tina
the Secretary of the Treasury shoul,
under such regulations as he might pr,
scribe, redeem the treasury notes issue
In the purchase of silver bullion, in gold G
silver coin at his discretion declares tha
1t is the Established policy of the Unite
States to maintain the two metals on
parity with each other upon the presc,
legal ratio, or such ratio as may be mr.
yided by law" And the act of Noyemb,
i, 1898, again declares it to be "the poli,
OF the United States to continue the II,
OF both gold and silver as standard none
and to coin both gold and silver I'M
money of equal intrinsic and exchang
able value, such equality to he secur,
through international agreement or
such safeguards of legislation as will i
sure the maintenance of the parity
value of the coins of the two metals. nj
the equal power of every dollar at n
times in the markets, and in the paymel
of debts.'
with knowledge of these assurance
the people have received these coins an
have relied confidently upon the good fai
A OF their government, and the coufiden
thus inspired has been most note
factor in the maintenance of the parit
The public has been satisfied that.
long as our present monetary system
preserved, the government will do whu
ever its moral obligations and expire
declarations require it to do, and, We
largely as consequence of this confiden
e in the good faith of the executive autb,
tiles, the silver coins have not depreciat
In value. 1t Is not doubted that who
ever can be lawfully done to mainta
equality in the exchangeable value of ii
two metals will be done whenever II h
comes necessary, and, although silver d,
~. lars and silver certificates have not. IN
' the present time, been received in @
NJ change for gold, yet, if the time sh.
ever come when the parity cannot
otherwise maintained, such exchapg
will be made.
1t is the duty of the Secretary of Ii
N Treasury, and of all other public officia
to execute in good faith the policy declar
by Congress. Whenever the Secreta
shall be satisfied that the silver dollar ca
not be kept equal in purchasing now
with the gold dollar, except by receivil
it in exchange for the gold dollar, VIII,
such exchange is demanded, it will he h
4 duty to adopt that course. But if O.
present policy is adhered to, and the col