Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1877-12-07

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rich, the speculative, the operating the mon
ey dealing classes may not always feel the
mischefs or may find casual profits on vari-
able currency, but the misfortunes of such n
currency to those who are paid salaries or
wages are inevitable and remedies.
THE SILVER QUESTION
Closely connected with this general subject
| of the resumption of specie payments is one
| of subordinate but still of grave importance
| | mean the readiustment of our coinage sys-
tenn by the renewal of the silver dollar rs nm
element in our specie currency, endowed by
| legislation with the quality of legal-tender to
n greater or less extent. As there is no doubt
! of the power of Congress under the Constitu-
ton TO coin money and regulate the value
| thereof, and as this power covers the whole
range of authority applicable to the metal
the rated value and the lcgal-tender quality
which shall be adopted for the coinage the
considerations which should induce or dis
courage q particular measure connected with
the coinage belong clearly to the province of
| legislative discretion and Of public eNpedlen-
cy. without intruding upon this province OF
| legislation in the least. have yet thought
| the subject of such critical importance
in the actual condition of our affairs rs
to present an occasion for the exercise of the
! duty imposed by the Constitution on the Pres
! ident of recommending to the consideration OF
! Congress "such measures rs he shall Judge
necessary and expcdient' Holding the opin
ion. as l do that neither the interest of the
| government nor of the people of the United
| States would he promoted by disparaging sill
yer ms one of the two precious metals which
furnish the coinage of the world and that leg
| islation which looks to maintaining the vol
! ume of intrinsic money to AS full measure
! Of both metals rs their relative commercial
values will permit would be neither unjust
nor inexpedient, | must ask your indulgence
to a brief and definite statement of certain es
sential features. l do not propose TO enter the
| debateqepresented on both sides by such able
dsputants in Congress and before the people
| and in the press, as to the extent to which the
| legislation of any one nation can control this
question, even within its own borders against
the unwritten laws of trade the positive
laws of other governments. The wisdom OF
Congress III shaping any particular law that
may be presented for my approval may Who'll
~ supersede the necessity of my entering into
these considerations, and / willingly avoid
either vague or intricate inquiries. 1t is only
certain, plain and practical features of such
legislation that desire to recommend to your
attention. In any legislation providing for
silver coinage, regulating its value and I'M
parting to it the quality of legal tender, it
seems to me of great importance that Con-
gress should not lose sight of its action as OPP
erating in a twofold capacity and in two dis
tinct directions If the United States govern
ment were free from public debt, Its legisln-
tive dealing with the question of silver com
age would be purely sovereign and govern
mental, under no restraints but those of con-
stitutional power and the public good as af
fected by the proposed legislation but i'll the
actual circumstances of the nation, with vast
public debt distributed very widely among
our own citizens, and held in great amounts
also abroad the nature of the silver coinage
measure as affecting this relation of the gov
eminent to the holders of the public debt be-
comes an element in any proposed legislation
of the highest concern. The obligation of the
public faith transcends all questions of profit
or public advantage; otherwise its unques-
tionable maintenance is the dictate as well of
the highest expediency rs of the most neces-
sary duty, and will ever be carefully guarded
by Congress and the people alike.
The public debt of the United States to the
amount of S729, 0OO,OOO bears interest at the
rate of six per cent and SOS, 600. 600 at the
, rate of five per cent The only way i'll which
the country can be relieved of these high rates
of interest is by advnntageously refunding the
> indebtedness. Whether the debt is ultimate
" paid in gold or in silver coin is of but little
moment compared with the possible reduc-
{ ton of interest one-third by refunding II at
such reduced rates. If the United States had
the unquestioned right to pay its bonds III sill
yer coin the little benefit from that process
|
4 Gus effect of such payment. if made or pro
: posed against the honest convictions of the
/ public creditors All the bonds that have
) been issued since February T.. 1873, whel
i gold became the only unlimited legal tender
. metallic currency of the country. are Justly
:. payable i'll gold coin, or in coin OF equal val
) ne. During the time of these issues the only
>, dollar that could be or was received by tht
1t government in exchange for bonds was the
J. GOLD dollar To reuuirp the puDlic QitOr
i to take in repayment any dollar of less com
;, mercial value would be regarded by them n
1t a Reputation of the full obligation assumed
! The bonds issued prior to 1873 We're issued n
) time when the gold dollar was the only CON
II in circulation, or contemplated by either tn
III government or the holders of the bonds AS tn
u coin in which they were to be paid. 1t Is fa
20 better to pay these bonds i'll that coin than Il
IL seem to take advantage of the unforeseen fal
{ of silver bullion to pay i'll n new issue of sll
r yer coin thus made so much less valuable
u The power of the United States to coin none
80 and TO regulate the value thereof ought not L
= be exercised for the purpose of enabling tn
- government to pay its obligations III com o
VI less value than that contemplated by the par
II ties when the bonds were issued. Any AT
u, tempt to pay the national Indebtedness Ill
III coinage of less commercial value than tn
~ money of the world would involve yiolatio
III of the public faith and work irreparable inju
. ry to the public credit 1t was the great lnel
+i9 il of the act of March. 1868, in strengthcnin
II, the public credit. that it removed all doubt a
ld to the purpose of the United States to pa
H. their bonded debt in coin. That act was Il,
u cepted as a pledge of public faith. The GOV
- eminent has derived great benefit from II /
nc the progress thus far made IN refunding III
u! | public debt at low rates of interest An az
nS herence to the wise and just policy of an e'
IL act observance Of the public faith will onabl
es the government rapidly to reduce the burde
e; of interest on the national debt to an amour
- exceeding $50, 000,OOO per aunum, and etie'
OF an aggregate saving to the United States {
VI more than three hundred million dollars b
Oh fore the bonds can be fully paid In adap
nj ing the new silver coinage to the ordinar
'r- uses of currency i'll the every day Transaction
ur of life and prescribing the quality Of leg
III tender to be assigned to il, n consideration
the first importance should be so to adjust Il
ratio between the silver and the gold con
N age which now constitutes our specie Gu
ry rency, Us to accomplish the desired end
as maintaining the circulation of the two meta
ch lie currencies and keeping up the volume
he the two precious metals rs our intrinsic MOI
di- ey. 1t is a mixed question for scientific re
Gle soning and historical experience 10 dcterlnil
IN how far and by what methods a practic
he equilibrium lie maintained which W
he keep both metals i'll circulation IN their N
he proprate spheres of common use. An abs
nd lutte equality of commercial value, free fro
lily disturbing fluctuations, is hardly attainabl
pie and without il unlimited legal-tendcr
ac- private transactions, assigned to both metal
of would irresistibly tend to drive out of circul
pc ton the dearer coinage and disappont Il
to principal object proposed by the legislatit
Fps in view l apprchend, therefore, that 4
n two conditions of n near approach TO equal
ion of commercial value between the gold and +