Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-12-12

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lation providing for a
SILVER COINAGE,
regulating it's 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
in operating in a two-fold capacity and
two distinct directions If the United
States government were free from a
debt, its legislative dealing with the
question of silver coinage would be
purely sovereign and governmental,
under no restraint but those of consti-
tutional power and the public good, as
affected by the proposed legislation.
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 rela-
ton of the government to the holders
of the public debt, becomes in any pro-
posed legislation of the highest con-
Germ. The obligation Of the public faith
transcends all questions Of profit or
public advantage otherwise its unques-
tionable maintainenee is the dictate as
well of the highest expediency, 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 $780,
100000, bears interest at the rate of
per cent, and $7OSOOO,O0O at the
rate of 5 per cent. and the only way
in which the country can be relieved
from the payment of the high rates Of
interest is by advantageously refunding
the Indebtedness, whether the debt is
ultimately paid in gold or silver coin;
is of but little moment compared
with the possible reduction of interest
one-third by refunding it at such a re-
duced rate. If the United States had
the UNREASONABLE 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 July II, 1873,
when gold became 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 any dollar of less com
mercial value would be regarded by
them as reputation of the full obliga-
ton assumed. The bonds issued prior
to 1871, were issued at Il time when the
gold dollar was the only coin in circu-
lation 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 unforeseen fall of sill
Yer 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-
aiding the government to pay ITS
obligations In a coin of less
value than that contemplated by the
parties when the bonds were issued
Any attempt to pay the national in
debtedness in coinage of less CONNER
cial 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, 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 govern
ment has derived great benefit from it,
In the progress thus far made In re-
funding the public debt, at low rates of
interest, and adherence to the wise and
lust policy Of an exact observance of
the public faith will enable the govern
ment rapidly to
REDUCE THE BURDEN OF INTEREST.
of the national dept to an amount ex-
ceeding twenty million dollars per an
mum, and effect an aggregate saving to
the United States of more than three
hundred million dollars before the
bonds can be fully paid In adopting
the new silver coinage to the ordinary
| euoSo VI WILL Ol1Cy III viz CFC1y OetS
transactions of life, and preserving the
quality of legal tender to be assigned to
it. consideration of the first import
ance should be to adjust the ratio be-
tween the silver and the gold coinage
which now constitutes our specie cur
rency, 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. It is a vexed
question for scientific reasoning and
historical experience to determine
how far and by what methods
a practicable equilibrium can be main
tanned, which will keep both metals in
circulation in their appropriate spheres
of common use, as absolute equality
of commercial value, free from disturb
ing fluctuations is hardly attainable,
and without it, an unlimited legal tender
for private transactions assigned to both
metals would tend to drive out of circu-
lation the dearest coinage and disap-
point the principal object proposed by
the legislation in view. [ apprehend.
! tbaraf0ra that tho two conditions &c n