The Canton advocate. [volume] (Canton, D.T. [S.D.]) 1877-1897, 1877-12-12


reduction Of interest one.third, BY refund
ing it at such reduced rate. If the United
States had the unquestionable right to pay
its bonds in silver coin, the little benefit
from that process would be greatly overbal-
anced by the injurious effect of such pay
ment, il made or proposed against the hon.
est convictions of the public creditors. ~
All the bonds that have been issued since
February 18th, 1873, when gold became the
only unlimited legal tender metallic cur.
rency 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 governmental
exchange for bonds was the gold dollsr. To
require the public creditors to take in pay
ment any dollar of less commercial value
would be regarded by them as reputation
Of the full obligation assumed. The
bonds issued prior to 1873 were issued
at a time when the gold dollar was the only
either the government or the holders Of the
bonds as the coin in which they were to be
paid. It 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
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 enabling
the. government to pay its obligations
in a coin of less value than that contem.
plated by the parties when the bonds were
issued. Any attempt to pay the national
Indebtedness in 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 wss 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 gov.
from it in the progress thus far made in re-
funding the public debtat low rates of in
terest. An adherence 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 of the nation
al debt to an amount exceeding $20, 0O0,0
per annum, and effect an aggregate saving
to the United States of more than $500, OO0,-
600 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
preserving 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 gold coinage, which
now constitutes our specie currency, as to
accomplish the desired end of maintaining
the circulation of the two metallic curren.
eies, and keeping up the volume of the two
precious metals as our intrinsic money. 1t
is a mixed question, for scientific
reasoning and historical. experience
- ln&o hou for ouH nv xrhof
methods q practicable equilibrium can be
maintained which will keep both metals in
circulation in their appropriate spheres Of
common use. An absolute equality of COM
mercial value, free from disturbing fluctua-
tons, is hardly attainable and without it an
unlimited legal tender, for private trans
actions, assigned to both metals, would tend
to drive out of circulation the dearest coin
age, and disappoint the principal object pro-
posed by the legislation in view.
/ apprehend, therefore, a that the
two conditions Of q near approach to equal
ity of commercial values between the gold
and silver coinage of the same denomina-
ton, and of limitation of the amounts for
which the silver coinage is to be q legal ten
der, are essential to mai ntaining both in cir
culation. If this condition can be
successfully Observed, the issue,
from the mint, of silver dollars,
would afford material assistance to the COM
munity in the transition to redeemable
paper money, and would facilitate the re-
sumption of specie payment and in its per-
manent establishment. Without these con-
ditions, fear that only mischief and mis-
fortune would follow from coinage of
silver dollars with the quality OF unlimited
legal tender even in private transactions.
Any expectation of temporary ease from an
issue of silver coinage to pass rs legal ten
der at rate materially above its commercial
value is, / am persuaded, delusion. Nor
can think that there il any substantial
distinction between an original issue Of
silver dollars at nominal value materially
above their commercial value, and
the nj restoration of the silver dol
lar to q rate which q once was,
but has ceased to be, its commercial value.
Certainly the issue of our gold coinage re-
duced in weight materially below its legal
tender value would not be any the less 3
present debasement of the coinage by reason
Of its equaling or even exceeding in weight
good coinage which at some past time had
been commercially useful to the legaltender
value assigned to the new issue. In recon-
mending that the regulation of any silver
coinage which may be authorized by con-
gress should observe these conditions
of commercial value and limited legal
tenders, / am governed by the feeling that
every possible increase should be given to
the volume of metallic money which can be
kept in circulation, and thereby every pos
sible aid afforded to the people in the pro-
cess Of resuming specie payments. 1t is the
excuse of my conviction that disregard of
these conditions would frustrate the good
results which are desired from the proposed
coinage, and emOarrass with new elements
of confusion and uncertainty the
business of the !, county that T. urge
upon your attention these consideration.
respectfully recommend to congress that
in any legislation providing for silver.
coinage and imparting to it the quality of
legal tender, there be impressed in the
measure frm provision -exempting the
public debt heretofore issued and now out
standing from payment, either Of principal
or interest, in any coinage of less value than
the present gold coinage of the country. al
y The organization of the i6
u ta@98q ifH3 CIVIL SERVICE fR
Of the country has, for number Of years,
attracted more and more of public attention.
So general has become the opinion that the
methods Of admission to it aud the condi-
tons Of remaining in it are unsound, that
both the great political parties have agreed