American citizen. [volume] (Canton, Miss.) 1864-1890, 1877-12-08

ject of the resumption of specie payments is
one of subordinate, but still of grave i'm |
portance. mean the readjustment of our
coinage system by the renewal of the silver
dollar as an element in our specie currency,
by legislation with the quality of |
legal tender to Il greater or less extent. As
there is no doubt of the power of Congress
under the Constitution to coin money and
regulate the value thereof, and as this pow
er covers the whole range of authority APP
plicable to the metal, the rated value and
the legal-tender quality which shall be
adopted for the coinage, the considerations
which should induce or discourage partic-
ular measure connected with the coinage
belong clearly to the province of legislative
discretion and of public eXpediency.
Without intruding upon the province of
legislation in the least, l have
yet thought the subject of such critical i'm
pOrtance, in the actual condition of our at
fairs, as to present an occasion for the eXer-
else OF the duty imposed by the ConstItu-
ton on the President of recommending to
the consideration of Congress "such meas
ures as he shall judge necessary and eXpe-
dent" Holding the opinion, as 1 do, that
neither the interests of the Government nor
of the people of the United States would be
promoted by disparaging silver as one of the
two precious metals which furnish the
coinage of the world, and that legisla-
ton which shall look to maintainingthe vol
ume of that intrinsic money to as full
measure of both metals as their relative COM
mercial values will permit would be neither
diligence to a brief and indefinite statement
of certain essential features in any
such legislative measures which l feel
it my duty to recommend. do not
propose to enter the debate, represented
on both sides by such able dIsputants in
Congress and before the people and in the
press, as to the extent to which the legisla-
ton of any one nation can control this ques-
ton, even within its own borders, against
the unwritten laws of trade or the positive
laws of other Governments. The wisdom of
Congress in shaping any particular law that
may be presented for my approval, may
wholly superSede the necessity of my enter
ing into these considerations, and willing
ly avoid either vague or intricate inquiries.
1t is only certain, plain, and practical traits
of such legislation that L desire to recon-
mend to your attention. In any legislation
providing for a silver coinage, regulating its
value, and imparting to it the quality of
legal tender, it seems to me of great impOr-
lance that Congress should not lose sight of
its action as operating in two-fold capaci-
ty,and in two distinct directions. If the Unit
ed States GOvernmentw were free from public
debt, its legislative dealing with the ques-
ton of silver coinage would be purely SOW
| ereign and governmental, under no restraints
but those of constitutional power and the
public good as affected by the proposed leg
islation, but in the actual circumstances OF
| the Nation, with a vast public debt distrib-
uted very widely among our own citizens,
and held in great amounts also abroad, the
| nature of the silver coinage measure, as af-
| fecting this relation of the Government to
the holders of the public debt, becomes an
! element in any proposed legislation of the
highest concern. The obligation of the pub
! lie faith transcends all questions of profit OF
public advantage otherwise, and its un-
| questionable maintenance will ever be care
! fully guarded by Congress and people alike
1t can not even add to our peoples sense Of
this obligation to know, they do
that such maintenance is the dictate
as well of the highest expediency
! Of bo dIItx
THE PUBLIC DEBT
| of the United States to the amount of $129,.
100000 bears interest at the rate of six pei
cent; sos, 100000 at the rate of five pei
cent; and the only way in which the coun-
try can be relieved from the payment Of
ously refunding the Indebtedness. Whether
the debt is ultimately paid in god or in sill
yer coin is of but little moment compared
with the possible reduction of interest one
third by refunding it at such reduced rates
| If the United States had the unquestionablC
| right to pay Its bonds in silver coin, the lit.
| tie benefit from that process would b'
greatly overbalanced by the injurious effec
of such payment if made or proposed agains
the honest convictions of the public credit
Ors. All the bonds that have been ISSUED
since February u, 1873, when gold became
the only unlimited legal-tender metallic
currency of the country, are justly payable
| in gold coin or in coin of equal value. Dur
ing the time of these issues, the only dolla-
that could be or was received by the Gov
eminent in exchange for bonds was the golC
dollar. To take in repayment any dollar o
less commercial value would be regarded b.
them as a reputation of the full obligation
Assuming that the bonds issued prior t.
1878 were issued at a time when the gOl(
contemplated by either the Government O
the holders of the bonds as the coin will
which they were to be paid, it is far bette
to pay these bonds i'll that coin than to seel
to take advantage of the unforeseen fal
of silver bullion by a new issue of silve
coin SO much less valuable. The power o
the United States to coin money and regu
late the value thereof ought never to be eX
ercised for the purpose of enabling the Gov
eminent to pay its obligation in coin o
less value than that contemplated by tn
parties when the bonds were issued. An,
attempt to pay the national Indebtedness il
coinage of less commercial value than tn
money of the world, would involve viola
ton of the public faith and work irrepara
BILE Injury to the public credit. 1t was tn
great merit of the act of March, 1869, il
strengthening the public credit, tina
| it removed all doubts to the pur
pose of the United States to pay thei
bonded debt in coin. That act was accepted
as pledge of public faith. The Govern
ment has derived great benefit from it il
the progress thus far made in refundlng The
public debt at low rates of interest, ant
hence wise and just policy of an eXac
| observance of the public faith, will enable
the Government to rapidly reduce the bur
den of interest on the National debt to al
amount not exceeding $20,000,000 per an
mum, and effect an aggregate saving to tn
United States of more than $500, 900 900, be.
fore the bonds can be fully paid. In adapt
ing the new silver coinage to the or
binary uses of currency i'll tn
everyday transactions of life, ant
preserving the quality of legal tender to b.
assigned it, a consideration of the first i'm
pOrtance should be to so adjust the ratio be
tween the silver and the gold coinage, whicl
now constitute our specie currency, as to ac
complish the desired end of maintaining tn
circulation of the two metallic currencie
and keeping up the volume of the two pre-
cious metals as our intrinsic money. 1t is
mixed question for scientific reasoning an(
historical experience, to determine how o.
! by what methods practicable equilibrium
metals in circulation in their appropriate
| spheres of common use. An absolute equal
| ity of commercial value, free from disturbing
| fluctuations, is hardly attainable, and with
out it an unlimited legal tender for private
transactions assigned to both metals would
tend to drive out of circulation the deares
coinage, and disappOint the principal Objec
proposed by the legislation in view. Iappre
| bend, therefore, that the two conditions of
near approach to equality of commercial val
ue between the gold and silver coinage of thu
same denomination, and of limitation o
amounts for which the silver coinage is to bt
legal tender, are essential to maintaining
both in circulation. If these conditions car
| be successfully observed, the issue from the
mint of silver dollars would afford materia
assistance to the community in transition tC
redeemable paper money, and would facili-
/ tate its permanent establishment. Without
these conditions, l fear that only mis-
chief and misfortune would follow from q
coinage of silver dollars with the quality
of unlimited legal tender. Even in private
fran otafi Of fam 1f.x