The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-12-04

faith transcends all questions of profit
or public advantage. Otherwise its
unquestionable maintenance is the die
tate as well of the highest expediencx
as of the most necessary duty. and will
be carefully guarded by Congress and
the people alike.
THE PUBLIC DEBT
of the United States TO the amount Of
$729,000,000 bears interest at the rate
of per cent, and $708,000,000 at the
rate of per cent. and the only way in
which the country can be relieved from
the payment of the high rates of inter
est is by adyantageously refunding the
Indebtedness. Whether the debt is ulti-
mately paid in gold or silver is of but
little moment compared with the posi-
BILE reduction of interest one-third by
refunding it at such reduced rate. II
the United States had the unquestion-
able right to pay it bonds in silver coin
the little benefit from that process would
be greatly overbalanced by the injurious
effect of such payment, if made as pro-
posed, against the honest convictions of
the public creditors. All bonds that
have been issued since Feb. y, 1873,
when gold became the only unlimited
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 govern
mPnt in exchange for bonds was the
gold dollar. To require the public cred
itors to take in repayment any dollar of
less commercial value would be regarded
by them as q Reputation of the full OBJ
legation assumed. The bonds issued
prior to 1873 were issued at time when
the gold dollar was the only coin in cir
culati0n or contemplated by either the
governments or the holders of the bonds
as the coin in 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 to pay
in a new issue of silver coin that is made
so much less valuable. The power of
the United States to coin money and to
regulate the value thereof, ought never
to be exercised for the purpose of en-
abling the government to pay its obhga-
tions in a coin of less value than that
contemplated by the parties when the
bonds were issued. Any attempt to pay
the national Indebtedness in a coinage
of less commercial value than the money
OF the world would involve 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 il
removed all doubt as TO the pur
pose of the United States to pay the
bonded debt In coin. That act was ac
cepted as pledge of public faith. Tbs
government has derived great benefi
from it in the progress thus far made il
refunding the public debt at low rate
: of interest. An adherence to the wis,
and just policy of an exact observanc,
of the public faith will enable the gov
eminent rapidly to reduce the burden o
: interest on the national debt to al
: amount exceeding $20.000.000 pc
annum, and effect an aggregate saving
. to the United States of more than $500,
, 100000 before the bonds can be full,
: paid. In adapting the new silver coinag,
to the ordinary uses of currency, IL
the every day transactions of the life an'
preserving the quality of legal tende
to be assigned to it, consideration o
the first Importance should be to so al
Just the ratio between the silver and tn
: gold coinage, which now constitutes on
specie currency, as to accomplish tn
desired end of maintaining the circula
{ ton of the two metalc currencies an,
keeping mp the volume of the
TWO PRECIOUS METALS
l as our intrinsic money. 1t is a mix
5 question for scientific reasoning an
historical experience to determine hoy
4 far and by what methods a practicabl
!, equilibrium can be maintained whic
g keep both metals in circulation in thei
3 appropriate spheres of common use. A
= absolute equality of commercial value
!, free from disturbing fluctuations,
Q hardly attainable, and without it an III
: timed legal tender for private transac
y tons, assigned to both metals, woul
n tend to drive out of circulation the deal
i est coinage, and disappoint the princi
n pal object proposed by the legislation j
: view. I apprehend, therefore, tbs
e the two conditions of nea
: approach to equality of commercial valu
Q between the gold and silver coin
n age of the same denomination an
e of q Limitation of the amount
= for which the silver coinage is to be
& legal tender are essential to maintain
,, ing both i'll circulation. If these con
Il ditionS can be successfully observed til
d issue from the mint of silver dollal
: would afford material assistance to tn
is community in the transition to redeem
le able paper money and would facil
h tate the resumption of specie paymeI
Re and its permanent establishment. Witt
a out thse conditions I fear that only mi
re chief and misfortune would flo
'e from a coinage of silver dollars with I'll
st quality of unlimited legal tenders. Eve
l. in private transactions any expectatio
A. of temporary ease from an Issue of sifve
IS coinage to pass as legal tender at
4. rate materially above its commerce
be value is / am persuaded delusion, n,
lie can / think that there is any substanti
he distinction between an original issue
ut silver dollars at nominal value mate
lie tally above their commercial vail
IN and the restoration of Il
vs. silver dollar at a rate whit
er once was but has cease
IS to be its commercial value. Certain
ny the issue of our gold coinage, reduc'
ny in weight materially below its legal te
ly der value. would not be any the less
/ present debasement of the coinage
tie reason of its equaling or even exceedil
nd in weight good coinage which at son
II ,0aaE 4;,,1a hod 1,aa,, ao,,o VI, aY,fo1ly aa,,