The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1877-12-13

] CHCS DIS VI Tic EiOSl u6CtsSdTS uuly
and will be carefully guarded by Con
gress and the people alike. The public
/ debt of the United States, to the amount
I of S729, ,000,0 600 bears interest at the rate
/ of six per cent; and Sos, 100000 at
| the rate of five per cent; and the only
way in which the country can berelieved
| from the payment of the high rates of
! interest is by advantageously refunding
the Indebtedness. Whether the debt is
ultimately paid in gold or in silver 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
unquestionable right to pay its bonds in
| in silver coin, the little benefit from
that process would be greatly overbai-
lanced by the injurious effect of such
payment, if made or proposed against
the honest convictions of. the public
credit.
All the bonds that have been issued
since February ~, 1873, when gold be-
came the only unlimited legal tender
metallic currency of the country, are
justly payable in gold coin or coin Of
equal value. During the time of these
issues the only dollar that could be, or
was received by the Government in ex-
change for bonds, was the gold dollar.
To require the public creditors to take
| in payment any dollar of less CONNER
cial value would be regarded by them
as repudiation of the full obligation
assumed. The bonds issued prior to
1873 we're issued at time when the gold
dollar was the only coin in circulation,
or contemplated by either the Govern
ment or holders of the bonds as the coin
which they were to be paid. 1t is far
better to pay these bonds in that coin
than to seem to take advantage of the
unforeseen fall of silver bullion, by pay
ing them in new issue of silver coin
that is so much less valuable.
The powero of the United States to coin
money, and to regulate the value thereof,
ought never to be exercised for the pur-
pose of enabling the Government to pay
its obligations il a coin Of less value
than that contemplated by the parties
when the bonds were issued. Any at
tempt to pay the National Indebtedness
in coinage of a less commercial value
than the money of the world would in
volve a violation of the public faith, and
work irreparable Injury to the public
credit. 1t was the great merit of the act
of March, 1869, in strengthening the
public credit, that it removed all doubt
as to the purpose of the United States
to pay their bonded debt in coin. That
act was accepted as pledge of public
faith. The Government has derived
great benefit from it, in the progress
thus far made in refunding the public
debt, as low rates of interest and an ad-
herence to the wise and Just policy of
an exact observance of the public faith
will enable the Government rapidly to
reduce the burden of interest on the
National debt to an amount exceeding
$20,000,000 per anuum, and effect an
aggregate saving in the United States
of more than three hundred millions
$500, ,000,000) of dollars before the bonds
can be fully paid.
In adapting the new silver coinage to
the ordinary uses of currency, in the
everyday transactions of life, and pre-
serving the quality of legal-tender to be
assigned to it, consideration of the first
Importance should be so to adjust the
ratio between the silver and the gold
, coinage, which now constitutes our
specie currency, as to accomplish the
desired end of maintaining the circula-
ton of the two metallic currencies, and
keeping UP the volume of the two
| PlCCiOuo hlCtsilo do Jul IiltillISlC DlOICy
1t is mixed question for scientific
reasoning and historical experience to
; determine how far and by what methods
practicable equilibrium can be main
tained which will keep both metals in
circulation in their appropriate spheres
of common use. An absolute equality
of commercial value, free f.om disturb
ing fluctuations is hardly attainable, and
6 without it an unlimited legal-tender for
private transactions, assigned to both
metals, would tend to drive out of circu-
lation the dearest coinage, and disap-
point the principal object proposed by
the legislation in view.
y 1 apprehend, therefore, that the two
conditions of near approach to an
, equality of commercial value between
o the gold and silver coinage of the same
= denomination, and of limitation of
: amounts for which the silver coinage is
. to be legal tender, are essential to
. maintaining both in circulation.
y If these canditions can be successfully
= observed the issue from the mint of
:, silver dollars would afford material assis,
: tance to the community in the transition
to redeemable paper money, and would
facilitate the resumption of specie pay.
~ ments and its permanent establishment
y Without these conditions fear that only
), mischief and misfortune would follow
, = from coinage of silver dollars, with
II II the quality of unlimited legal tender
u Even in private transactions any expec
+ tation of temporary loss from an issue O.
70 silver coinage, to pass as legal tender
u . at a rate materially above its commercial
- value is, | am persuaded, delusion
= Nor can l think that there is any sub
u stantial distinction between an origina
u issue of silver dollars at nominal value
!, material above their commercial value
~ and the restoration of the silver dolla
~ at rate which once was, but has ceased
~ to be, its commercial value. Certainly
!n the issue of our gold coinage, reduced
u in weight materially below it's legal
l7 l1 tender value, would not be any the less
VI present debasement of the coinage b,
y i reason of its equaling or even exceeding
n ie in weight good coinage which at SOM
.. past time had been commercially equa
y to the legal-tender value assigned to tn
~ new issue.
ie In recommending that the regulation
~ OF any silver coinage which may b.
~ ~ authorized by Congress should observ
l9 1 these conditions of commercial valu
d. a. and limited legal-tender. 1 am governe,
" " by the feeling that every possible in
y crease should be given to the value o
u metallic money which can be kept il
x circulation, and thereby every possibl
~ ~ aid afforded to the people in the process
A. A. of resuming specie payments. 1t is be
70 70 cause of my conviction that disregar
d of these conditions would frustrate tn
good results which are desired from tn
Ut proposed coinage, and embarrass wit
d new elements of confusion and ur
eeIl certainty, the business of the country
~ ~ that | urge upon your attention thes
Ut considerations.
h1 SILVER AND THE PUBLIC DEBT.
60 l respectfully recommend to Congres
n n that, in any legislation providing for
u silver coinage, and imparting to it tn
~ quality of legal-tender, there be in
at pressed on the measure a firm provisio