Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1877-12-05

taS ~ vi - -tfSENsDON bNdiS 60
The rate OF 6 per cent. and the o, ly way IN
which the country can be relieved
from payment OF the higher rates OF inter
-st is 10y a~uvantageouskY rounding The in
iebtedness. Whether the debt is ulti-
,nately paid IN gold or silver coin is of but
little moment compared with the possible
reduction of interest oDe-third by ref1nGIDg
II at such a reduced rate. Ii The United
States bad the unqnestionshle rignt 10 pay
Its bonds in silver coin, the little benefit
from that process would be greatly over
balanced by the injurious effect of SUCH
payment If made Or proposed against
the convictions of the public creditors
All the bonds that have been issued since
Feb. y, 1873, when gold became the only
unlimited legal tender as the metallic cur
rency OF the country are justly payable in
gold coin or in coin OF equal value. During
the time of these issues the only dollar that
could be or was received by the government
in exchange for bonds was the gold dollar.
To require its public creditors % take in
payment any dollar of less commercial value
Would be regarded by them as a reputation
OF the full obligation as umed. The bonds
issued prior 10 1877 were issued
at a time when The gold doiIar was the only
coin in circulation or contemplated by either
the government or holders OF bonds and the
in coin which these bond were TO be paid.
l. i, far better 10 pay these bonds in that
coin tt an to seem TO take advantage of the
Unforeseen fall of silver bullion. To pay in
a new issue of silver coin thai made so much
les available the power of the United States
to coin money and regulate the value thereof
ought never TO be exercised for the purpose
OF enabling the government to pay
lis obligations In e coin OF les
value tnan that contemplated by the parties
when the bonds we're issued. Any attempt
to pay the national Indebtedness in a coinage
of less commercial value than with The
money of world would involve a violation
OF the public faith and work i,reparabie
injury 70 the public credit. 1t was the
great merit of the act OF March 1869
in strengthening the public credit that II
removed all doubt as TO the purpose OF the
United States to pay The bonded debt IN
coin. That act was accepted as a pledge
Of public faith. The govern
ment nas derived great benefit
from it in the progress thus far made in re-
funding the public debt at low rates OF inter
est. An adherence to the wise and lust pol
icy Of an exact observance OF the public faith
will enable the government, torapldly reduce
the burden of interest ON the national debt to
an alnou t exceed G twenty million dollars
per annnm, aud effect an aggregate saving
10 the United States Of IN re than $500, U00,
600 before the bonds eau be fully pad.
In adapting the new silver cola ,se TO the
ordinary Uses OF cur ency IN the
every day transaction Of the life and
preserving the quality o the legai tender ii
is of the first Importance that 1t should be
so to adjusted that the ratio between the
silver anu the gold coinage which now con
stitutes our specie currency as to accomplish
The desired end OF maintaining The c.rcula,
tin of the Two metallic curreLcies anu
keeping up the volume OF the Two precious
metals IN ,ur intrinsic money. 1t is a
mixed question for scientific Ieasoni G and
h ~.storicat experience TO determine
how far and by what method
a practicable equilibrium can be maintained
which viii keep both metals IN circulation
IN their appropriate spheres OF com non use
Or absolute equality of commercial value
r free from disturbing fuctuation is hardly at
tainable and without it an unlimited lega
t tender for private transactions assigned Il
e both metals would ten to drive out OF clrcu
;. lation the dearest coinage and disappoln
the principal object proposed by tn
legislation in view. | ~apprehend tina
the two conditions of a near ap
r proach to equality of commercial yalu
0 between the gold and silver coinage of til
g same denomination and a limitation of TIL
e amounts for which the silver coinage is t
e be a legal tender, as essential to m4intainln
e both in circulation. If these conditions ca
e successfully observed the issue from tn
mint of silver dollars would afford materia
assistance TO the community IN the %transitlo
r to redeemab e paper money, and would fl
g %cilitate the resumption OF specie paymen
and its permanent establishment. Withor
this condition, | fear that only mischi'
n and misfortune would folio
fiom a coinage of silver dollar with qualit
of unlimited legal tenders, even in priva1
transactions. Any expectation of temporar
ease from an issue OF silver coinage to pa
1T as legal tenders, at a rate materially aboy
its commercial value is | am persuaded
re delusion, nor can | think that there is an
le substantial distinction between an origin;
of issue of silver dollar at a nominal Walt
he materially above the commercial value, an
j. the restoration of the silver dollar at a RAJ
is which once was, but has cease
lie TO be, its commercial value. Certainly u
* issue of our gold coinage, reduced in w1igl
lie materially below its legal tender valu
Is would not be any the less a present dt
81
es basement of coinage by reason of its equa
ing, or even exceeding in weight, a goC
a coinage which at some past time had bee
n commercially equal to The legal tend
es value assigned to the new issue. In recon
mending that the regulation of any silv'
IT. coinage which may be authorized by co
in gress should observe these conditions
commercial value and limited leg
a lender, [ am governed by the fee
80 ing that every possible increase shou
,st be given TO the volume OF metallic none
which can be kept in circulation and ther
Of by every possible aid afforded to the pc
a. pie in process of resuming specie paymer
1t is because of my conviction that a d
- regard of these conditions would frustra
- good results which are desired from t
90, proposed coinage, and embarass with til
IN new element of confusion and uncertain
the business of the country, that urge
" your attention these considerations.
a 1 respectfully recommend to congress tt
M in any legislation providing for a sily
it coinage and imparting TO it the quality
m legal tender, there be impressed on t