St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1878-03-08
The Presidents Veto on the Silver Bill
To the House of Representatives =

|
After very careful consideration of
| House bill 1893, entitled IAN act to
authorize the coinage of the silver dol
lar and to restore its legal-tender char
acter," | feel compelled to return it to
the House of Representatives,, in which
it originated, with my objections to its
passage. Holding the opinion, which
| expressed in my annual message, that
''neither the interests of the govern
ment nor the people of the United
States would be promoted by disparag-
ing silver as one of the two precious
metals which furnish the coinage of the
world, and that Legislation which looks
to maintaining the volumn of intrinsic
money to as full a measure of both
metals as their relative commercial
value will permit, would be neither I'M
just nor ineXpedient," lit has been my
earnest desire to concur with Congress
in the adoption of such measures to in
crease the silver coinage of the country
us would not impair the obligation of
contracts either public or private, or
injuriously affect the public credit. 1t
is only upon the conviction that this
bill does not meet these essential re-
quirements that l feel it my duty to
withhold from it my approval.
My present official duty as to this
bill permits only an attention to the
specific objections to its passage, which
seem to me SO important as to Justify
me in asking from the wisdom and duty
of Congress that further consideration
of the bill for which the constitution
has in such cases provided. The bill
provides for the coinage of silver dol
lars of the weight of 4121 grains each
of standard silver to be legal tender
at their nominal value for all debts and
dues, public and private, except where
otherwise expressly stipulated in the
contract. 1t is well known that the
market value of that number of grains
of standard silver during the past year
has been from 80 to 90 cents as COM
pared with the standard gold dollar.
Thus the silver dollar authorized by this
bill is worth from to 10 per cent less
than it purpOrts to be worth, and is
made IA legal tender for debts contracted
when the law did not recognize such
coins as lawful money.
The right to pay duties in silver or
III certificates or silver deposits will,
when they are issued in sufficient
amount to circulate, put an end to the
receipt of revenue in gold and thus
compel the payment of silver for both
the principal and interest of the public
debt; 81, l43, 493, 400 of the bonded
debt now outstanding was issued prior
to February, 1873, when the silver dol
lar was unknown in the circulation of
this country and was only convenient
form of silver bullion for expectation
1888, 440, $50 of the funded debt has
been issued since February, 1873, when
gold alone was the coin for which the
bonds were sold, and gold alone
was the coin in which both parties
to the contract understood that the
bonds would be paid. These bonds
flowed into the markets of the world.
They were paid for in gold when
silver had greatly deprecated, and
when no one. would have bought them.
If 1T had been understood that thew
would be paid in silver. The sum of
S225 ZOO, 900 of these bonds has been
sold during my administration for gold
coin, and the United States received
the benefit OF these sales by reduction
OF the rate of interest to 4 per cent.
During the progress of these sales "a
doubt was suggested as to the coin in
winch inc pay neLG OF UneSe bonds
would be made. The public announce
ment was thereupon authorized that it
was not to be anticipated that any
further legislation of Congress or any
action of any department of the gov
eminent would sanction or tolerate the
redemption of the principal of these
bonds, or the payment of the interest
thereon in coin or less value than the
coin authorized by law at the time of
the issue of the bonds, being the coin
exacted by the government in exchange
for the same. In view of these facts. it
will be justly regarded as grave breach
of the public faith to undertake to pay
those bonds, principal or interest, in
silver coin worth in the market less
than the coin received for them.
1t is said that the silver dollar made
legal tender by this bill will, under
its operations, be equivalent in value
to the gold dollar. Many supporters
of the bill believe this, and it would
not justify an attempt to pay debts
either public or private in coin of in
ferior value to the money of the world.
The capital defect of the measure is