The Portland daily press., 1877-12-04

indulgence to brief and definite state
ment OF certain essential features of any
sucn legislative measures which l feel it
my duty to recommend. I do not propose
| to enter the debate represented on both sides
| by such able disputants in Congress. and before
the people, and in the press as to the extent to
Wnlch the legislation of any one nation can
cootroi tnis question even within its own bor-
| ders against the unwrtten laws of trade, or
the positive laws of other governments.
The wisdom Of Congress in shaping any par
ticuiar law that may be presented for my
| approval may wholly supersede the necessity of
my entering into these considerations, and l
| willingly avoid either vague or intricate in-
| quirles. 1t IS ooly certain, plain and praetic-
| able traits of such legislation that desire to
recommend to your attention. In any legisla-
| tion providing for silver coinage, regulating
| its value and impartiug to it the quality Of
legal tender, it seems to OF great i'm portance
| that Congress should not lose sight of its action
| as operating in twofold capacity aud in two
| distinct directions
| If the United States government were free
| from public debt its legislative dealing with
| the question of silver coinage would be purely
| sovereign and governmental under no re-
| straints but those Of constitutional power the
public good as affected by the proposed legisla-
| ton. But in the actual circumstances 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 the
| silver 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 obligations of the public faith tran
| scend all questions of profit or public advan-
| tage, otherwise its unquestionable maintena-
| nance is the dictate as we'll of the highest ex-
| pediency as of the most necessary duty and
| will ever be carefully guarded by Congress and
the people alike. The public debt of the
United States to the amount of $729,000 600
| bears interest at the rata of six per cent. and
1 S70S mn 0n0 tha a nf a. and
| the ouly way in which the country can be re-
| lieved from the payment OF these high rates of
| interest is by advsntageously refundng the
Indebtedness. Whether the debt is ultimately
paid iu gold or silver coin is of but little mo-
ment compared with the possible reduction of
| interest one third by refupding it at such re-
| duced rates. If the United States has the un-
questioned right to pay its bonds in silver coin
| the little benefit from that process would be
| greatly overbalanced 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 issued since Feb
| ruary II, 1873, when gold became the only un-
| limited legal tender metallic currency of the
country, are partly pay able in gold coin, or in
| coin of equal value. During the time of these
| issues the only dollar that could be or was re-
| eeived by the government in exchange for
| bonds, was the gold dollar. To require the pub
| lie creditors TO take in repayment any dollar of
| less commercial value would be regarded by
| them as reputation of the full obligation as
| samed. The bonds issued prior to 1878 were
| Issued az 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 to pay these bonds in that coin
| than to seem to take advantage of the unfore-
| seen fall Of silver bullion to pay in new issue
| Of silver coin thus made so much less valuable.
The power of the United States to coin money
and to regulate the value thereof ought not to
| be exercised for the purpose of enabling the
government to pay its Obligations in coin of
LESS value than that Contemplated by the par
ties when the bonds were issued. Auy attempt
to pay the national indebtedr ess in a coinsge
of less commercial value than the money Of
the world would involve a violation of the pub
lie faith, and work insuperable injury to the
public credit
1t was the great merit OF the act of March.
1869, in strengthening the publ, credit that il
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 ben
eft from it in the progress thus far made in re.
funding the public debt at low rates of interest.
An adherence to the wise aud just policy of an
exact observance of the public faith will ena-
ble the government rapidly to reduce the bur-
zen of interest on the national debt to an
amount exceeding twenty million dollars per
| annum, and effect an aggregate saving to the
United States of more than three hundred mil
lion dollars before the bonds can be fully paid.
La adapting the new silvec coinage to the ordin-
ary uses of currency in the every day transac-
tious of life, ana prescribing the quality of legal
ten der to be assigned TO it, a consideration of
| the first importance should be so TO adjust the
| ratio between the silver and the gol1 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 aud historical
A.aka
methods practicable equilibrium can be main
| taiued which will keep both metals in circula-
ton in their appropriate spheres of common
| use. An absolute equality of commercial value
| free from disturbing fluctuations, is hardly al
taiuable and without it an unlimited legal ten
der for private transactions assigned to both
metals would irresistibly tend to drive out of
circulation the dearer coinage and disappoint
the principal object proposed by the legislation
| in view. L apprehend, therefore, that the two
| conditions of near approach to equality of
commercial value between the gold and silver
| coinage of the same denomination aud of a
| limitation of the amounts for which the silver
coinage is to be the legal tender are essential to
maintaining both in circulation. If these con-
ditions can be successfully observed the issue
| from the mint of silver dollars would afford
material assistance to the community In the
transition to redeemable paper money aud
would facilitate the resumption of specie pay
ment and its permanent establishment. With
| out these conditions, fear that only mischief
and misfortune would flow from coinage of
| silver dollars with this quality of Unlimited
legal tender, even in private transactions. Any
eXL ectatiOn of temporary ease from an issue of
silver coinage to pass as legal tender at a rate
ma eraly above Its commercial value is Il am
persuaded) delusion, nor can l think that
| there is any substantial distinction between an
| original issue of silver dollars, at a nominal
value, materially above their Commercial value,
and the restoration of the silver dollar at rate
| which once was, but has ceased to be, its CON.
| mercial value. Certainly the issue of our gold
| coinage, reduced in weight materially below its
| legal tender value, would lot be any the less a
present debasement of the coinage by reason of
| its equalling, or even exceeding in weight
good coinage which at some past time had been
commercially equal to the legal tender value
assigned to the new issue.
In recommending that the regulation of any
silver coinage which may be authorized by
Congress should observe these conditions of
commercial value aud limited legal tender, l
am governed by the feeling that every possible
increase should be given to the volume of me-
tallic money which can be kept in circulation,
and thereby every possible aid afforded to the
people in the process of rssumiDg specie pay
ments 1t is because of my conviction that
disregard of these conditions wonld Illustrate
the good results which are desired from the
proposed coinage and embarrass with new ele-
ments of confusion and uncertainty the busi-
ness of the country, that urge upon your at
tenton these considerations. L respectfully
recommend TO congress that IN any legislation
providing for silver coinage and imparting to
it the quality of legal tender there be impressed
on the measure a firm provision exempting the
public debt heretofore issued and now outstand-
| ing from payment either of principal or inter-
est in any coinage of less value than the present
gold coinage of the country.
The Civil Service.
The organization of the civil service of the
country has for a number of years attracted
more and more of public attention So gem
eral has become the opinion that thu methods
of admission to it, and the conditions of re-
| naming in it, are unsoand that both sthe great
| political parties have agreed in the most ex-
plicit declarations of tbe necessity of Reform
| and in the most emphatic demands for it L
| have fully believed these declarations and de-
mands to be the expression of a siucere convc-
| ton of the Intelligent masses of the people up
| on the subject and that they should be receg-
| nized and followed by carr est aud prompt ac-
| ton on the part of the legislative and execu-
| tive departments of the government. In pur-
| suance of the purpose indicated before my ac-
| cession to office, L eDdeayored to haye my own
| views distinctly understood, and upon my in
| auguraton my accord with the public opinion
| was stated 10 terms believed to be plain and
| unambiguous. My experience In the executive
| duties has strongly confirmed the belief in the
| great advantage the country would find in
| observing strictly the plan of the Constitution,
| which imposes upon the executive the sole duty