Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-12-13


the money of the people is sought for and can
only be gained by the resumption of specie
payments. The rich, the speculative, the op>
Grating, the money-dealng classes may not
always feel the mischiefs of, or may find cas-
ual profits in, variable currency; but the
misfortunes of such a currency to those who
are paid salaries or wages are inevitable and
remediless.
Closely connected with this general subject
for the resumption of specie payments is one OF
subordinate but still of grave Importance. !
mean the readjustment of coinage system by
the renewal of the silver dollar as an element
in our special currency endowed by legislation
with the quality of legal tender to 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 power covers the whole range of authoF~
ity applicable 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 a particu-
lar measure connected with the coinage, be-
long clearly to the province of legislative dis
erection and of public expediency. Without
intruding upon the province of legislation in
the least, have ye. thought the subject of
such critical Importance in the actual condi-
ton of our affairs as to present an occasion for
buS CAciStsS Va TIC uusJ luJpuStu w tue kCOHr
stitution on the President of recommending to
the consideration of Congress 'ssuch measures
as he shall Judge necessary and expedient, y
Holding the opinion, as do, that neither the
interests of the Governments nor of the people
of the United States would be promoted by
disparaging silver as one of the two precious
metals which furnish the intrinsic money of
the world and that legislation which shall
look to maintaining the value of that intrinsic
money to as full measure of both metals as
their relative commercial values will permit
would be neither unjust nor inexpedient |
must ask your indulgence to brief aud def
mite statement of certain essential features in
any such legislative measures which | feel il
my duty TO recommend. do not propose to
enter the debate represented on both sides by
such disputants 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 Dor.
ders, against the unwrtten 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 en-
teriug into these considerations, and willng>
ly avoid either vain or intricate inquiries. 1t
is only certain plain and practicable traits OF
such legislation that desire to recommend to
your attention. In any legislation providing
for silver coinage, regulating its value and
imparting to it the quality of legal tender, it
seems to me of great Importance that Congress
should not lose sight of its action as operating
in twofold capacity and in two distinct d.
rections. If the United States Government
were free from a public debt, its legislative
dealing with the question of silver coinage
would be purely sovereign and governmental,
nm M 0ir1fo hut 0f
power and the public good as affected by the
proposed legislation. But in the actual cir
cumstnaces of the nation with a vast public
debt, distributed very widely among our own
citizens and held in great amounts also
abroad, the nature of thesilver coinage measure,
as affecting 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 public
faith transcends all questions of profit or pubs
lie advantage otherwise, and its unquestiona-
BILE maintenance win ever be carefully guarded
by Congress and the people alike.
THE PUBLIC DEBT
of the United States to the amount of $780,
100000 bears interest at the rate of six per
cent, and $70S 100000 at the rate of i've per
cent, and the only way in which the country
can be relieved from the payment of these
high rates of interest is by adyantageously re.
funding the Indebtedness. Whether the debt
is ultimately paid in gold or silver coin is of
little moment compared with the possible re-
duction of interest one- third by refunding it
at such reduced rate. If the United States
had the unquestioned right to pay its bonds
in silver coin, the benefit from that process
would be greatly overbaanced by the injurious
effect of such payment if made or proposed
against the honest convictions of the public
creditors. All the bonds that have been is
sued since February IL, 1878, when gold be.
came the only unlimited legal tender metallic
currency 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 the public creditors to take in repay
ment any dollar of less commercial value
would be regarded by them as reputation
of the full obligation issued. The bonds issued
prior to 1878 were issued at time when the
gold dollar was the only coin in circulation,
or contemplated by either the Government or
the holders of the bonds as the coin in which
they were to be paid. 1t is far better 10 pay
these bonds in that coin than to seem to take
advantage of the unforeseen fall of silver bull
lion, to pay in new issue of silver coin that
made so much less valuable the power of the
United States to coin money and to regulate
the value thereof 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 violation
of the public faith and work irreparable injury
to the public credit. 1t was the great merit
of the act of March, 1866, in strengthening
the public credit to remove 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 pro-
gress thus far made in refunding the public
debt at a low rate of interest. An adherence
to the wise and just policy of an exact observa-
ton the public faith will enable the Govern
mcnt rapidly to reduce the burden of interest
on the national debt to an amount exceeding
$40, 200, 900 per annum, and effect an aggre-
gate saving to the United States of more than
$500, 000, 900 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 aud preserving the quality
of legal tender TO be assigned to it, a considers
alton of the first Importance should be to so
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 circulation of the two metallic
currencies and keeping up the volume of the
two precious metals as our intrinsic money. 1t
is mixed question for scientific reasoning and
historical experience: to determine how far
and by what methods practical equilibrium
can be maintained which will keep both metals
in circulation in their appropriate spheres of
common use on an absolute equality of COM
mercial value, free from disturbing fuctua-
tons 1t is hardly sttainable. and without it
an unlimited legal tender for private transaca
tions suitable to both metals would tend to
drive out of circulation the dearest coinage
and disappoint the principal object proposed
by the legislation in view.I apprehend there's
fore, that the two conditions of a near ap>
proach to equality of commercial value be-
tween the gold and silver coinage of the same
denomination, and limitation of the amounts
for which the silver coinage is to 5e a legal
tender, are essential in maintaining both in
circulation. If these conditions can be sucs
cessfully observed the issue from the mint of
silver dollars would afford material assistance
TO the community in the transition to redeems
able paper money, and would facilitate the
resumption of specie payment and its perma>
nent establishment. WilSont these conditions
fear that only mischief and misfortune would
follow from coinage Of silver dollars with the
quality of unlimited legal tender, even IN pri>
yate transactions A temporary ease from an