Evening star., 1896-09-16
MAINTAINING THE PARITY
When Gold Should Be Exchanged fol
Silver.
Secretary Carlisle Tells How the
Keep the Two Metals Circulating.

Secretary Carlisle has written the fol-
lowing letter on the subject of the main
tenance Of the parity between gold and
silver:
BAR HARBOR, Me-, September -. 1896.
Mr.. James P. Helm, Louisville, KY:
My Dear Sir: Your letter asking how the
silver dollars. which contain a quantity
of bullion commercially worth only about
fifty-three cents 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, is received, and, as a great
many inquiries upon the same subject are
addressed to me daily from different parts
of the country. which 1t is impracticable
to answer in detail, will take advantage
of your favor to answer them all at once.
Coined on Public Account.
All the standard silver dollars issued
from the mints since the passage Of the
&C. of 1873, now amounting to more than
1888 900 900, have been coined on public ac-
count from bullion purchased by the gov
ernment, and are legal tender in payment
of all debts. public and private, without
regard to the amount, except when ether
wise expressly stipulated In the 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 be-
tween the coins of the two metalS-gold
having been paid on it's coin obligations
when gold was demanded, and silver hav-
ing been paid when silver was demanded.
Under this policy the coinage has been
SO limited by law and the policy of the
Treasury Department that the amount
coined has not become so great to drive
the more valuable coin-gold-out Of use,
and thus destroy the basis of our none
| tary systems, and SO long the two met
ais are of unequal commercial value at
| the ratio established by law, this limita-
| ton 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 de-
| probation which the experience of all
countries has shown would otherwise re-
| suit from the attempt to 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.
Difference With Free Coinage.
With free and unlimited coinage of silver
| on account of private individuals and cor
| porations. the government would be under
! no moral obligation to maintain the parity,
and, moreover. it would be unable to do So
because the volume of overvalued silver
forced into the circulation by legal tender
| provision would eXpel the gold from
| the country. or put such premium upon
| it that 1t would be impossible to procure
| and hold in the treasury sufficient amount
to provide for the redemption of silver on
| presentation In order to maintain the
| parity under such conditions the govern
| ment would be compelled from the begin
! ming to exchange gold for silver dollars
and their paper representatives, whenever
| demanded, just as 1t now exchanges gold
| for Its own notes when demanded, and as
the coinage of silver dollars would be un-
limited. and, therefore. constantly increas
Ing, point would soon be reached where
1t would be impossible to continue the pro
cess Of redemption.
The implied obligation Of the government
to preserve the value of the money which
1T coins from its own bullion and for It's
| own use and which it forces it's citizens tc
receive in exchange for their property and
services. has been supplemented by two
statutory declarations. which substantial,
pledge the public faith to the maintenance
of that policy.
The act Of July II. $780, after providing
that the Secretary Of the Treasury should.
urder such regulations as he might pre-
scribe. redeem the treasury notes issued
in the purchase of silver bullion in gold
or silver coin at his discretion, declares
that 1t Is 1.-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 may be
provided by law" and the act of Novcm-
Der l, 1893, again declares it to be "the
policy nf the United States to continue the
use Of both gold and silver as standard
NOR ey. and to coin both gold and silver
into money Of equal intrinsic and ex
| I'M tfvy 70 ha
cured through international agreement OF
by such safeguards of legislation 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 markets and in the payment Of
| debts"
With knowledge of these assurances the
people have received these coins, and have
relied confidently upon the good faith o.
their government, and the confidence thu.
inspired has been most potent factor IL
the maintenance of the parity. The pub
lie has been satisfied that so long as oul
present monetary system Is preserved tn,
government will do whatever it's mora
obligations and express declarations re
sequence of this confidence In the goof
faith of the executive authorities the sill
Yer coins have not deprecated in value.
RedceMing Silver in Gold.
1t is not doubted that whatever can b,
lawfully done to maintain equality in tn,
exchangeahle value of the two metals will
be done whenever it becomes necessary
and although silver dollars and silver Ger
tificates have not up to the present tim
been received in exchange for gold, ye
If the time shall ever come when tn
parity cannot be otherwise maintained
such exchanges will be made. 1t is tn
duty of the Secretary of the Treasury, an,
, of all other public officials. to execute il
, good faith the policy declared by Con
. | gress, and whenever he shall be satisfied
that the silver dollar cannot be kept equa
, in purchasing power with the gold dollar
except by receiving it in exchange for tn
| gold dollar when such exchange is de
ma nded, it will be his duty to adopt tina
course. But If our present policy is ad
hered to and the coinage is kept within
f reasonable limits the means heretofor
| employed for the maintenance of tn
, parity will doubtless be found sufficien