American citizen. [volume] (Canton, Miss.) 1864-1890, 1878-03-09
The Presidents Veto of the Silver Bill.


After very careful consideration of House
bill No. l,093, entitled "An act to authorize the
coinage of the standard silver dollar, and to
restore its legal tender character 1 feel
compelled to return it to the House of Repre-
sentatives, in which it originated, with my
objections to its passage. Holding the opin
ion which expressed in my annual message,
that neither the interests of the Government
nor of the people of the United States wOuId
be promoted by disparaging silver as one of
the two precious metals which furnish the
coinage of the world. and that legisIation
which looks to maintaining the volume of
intrinsic money to as full a measure
of both metals as their relative com
neither unjust inexpedient, it has been
my earnest desire to concur with Congress
the silver coinage of the country would
not impair the obligations OF contracts, either
public or private, nor injuriously affect the
public credit 1t Is only upon the conviction
that this bill does not meet these essential
requirements that feel it my duty to with
hold from it my approval. My present Off
cial duty as to that bill permits only at
tentiOn to the specific objections to its pass
age, which seem to me 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 povided.
The bill provides for the coinage of silver
dollars of the weight of 4l2K grains each of
nominal value for all debts and dues, public
and private, except where otherwise ex-
known that the market value of that number
of grains of standard silver during the past
year mas DGen from W TO " centS.a as compared
with the standard gold dollar. Thus the sill
dollar authorized by this bill is worth
from to 10 per cent. less than it purports to
be worth and is made a legal tender for debts
contracted when the law did not recognize
such coin as lawful money. The right to pay
duties in silver, in certificates of silver de
pOSitS will, when they are issued in sufficient
amount to circulate put an end to the receipt
of the revenue in gold, and thus compel
the payment of silver for both the principal
and interest of the public debt; 81 ,I43 493 400
of the bonded debt now outstanding was is
INalN1.
silver dollar was unknown in the circulation
of the country, and was only a convenient
form of silver bullion for expectation: S5s3-
4t0.350 of the bonded debt has been issued
since February, 1873, when gold alone was the
alone was the coin in which both parties to
the contract understood that the bonds WouId
be paid. These bonds entered into the mar
kets of the world. They were paid for in gold.
when silver had greatly deprecated, ,andwhen
no one would have bought them if it had
been understood they would be paid in silver,
The sum of S225, ,000,0 of those bonds has
been sold du, ing my Administration for gold
coin and the United States received the hen
eft of those sales by a reduction of the rates
of interest to per cent. During the progress
of these sales a doubt was suggested as TO
coin in which payment of these bonds would
be made. The public announcement was
thereon authorized that it was not to be an
tictpated that any further legislation of Con
gress, or any action of any department OF the
Government would sanction or tolerate the
redemption OF the principal of these bonds
or the payment OF interest thereon, in coin
of less value than coin authorized by law at
the time of the issue of bonds, being the coin
exacted by the Government in exchange for
the same.
In view of these facts, it will justly be re-
garded as a grave breach of the public faith
to undertake. to paw these bonds. pTincinaI or
interest, in silver coin, worth in the market
less than the coin received for them. II Is
said the silver dollar, made a legal tender by
this bill, will, under its operations be eQuiva--
lent in value to the gold dollar. Many sup
porters of the bill believe this, and would not
justify an attempt to pay the debts, either
public or private, in coin OF inferior value
to the money of the world.
The capital defect of the bill is that it con-
tains no provisions protecting from its ope-
rations pre- existing debts, in case the coinage
which it creates shall continue to be of less
value than that which was the legal tender
when they were contracted. If it is
now proposed, for the purpose of taking ad-
vantage of the depreciation of silver in the
payment OF debts, to coin and make legal
tender silver dollar of less commerciai
value than any dollar, whether of gold or
paper, which is now lawful money in this
country, such measure, it will be hardly
kind, be an act of bad faith As to all debts
heretofore contracted the silver dollar should
be made legal tender only at its market val
ne. The standard of value should not be
changed without the consent of both parties
to the contract. The National promises
should be kept with unfiinching fidelity.
There is no power to compel a nation to pay
its just debts. Its credit depends on its honor
the nation owes what it has led allowed
its creditors to expect. L can not approve
bill which, in my judgment, authorizes the
violation of sacred obligations. The obliga-
ton of the public faith transcends all ques-
tions of profit public advantages It's un-
questionable maintenance is n dictate as
wen of the highest experience as of the most
necessary duty, and should ever be careful
ly guarded by the Executive, by Congress,
by the people. 1t is my firm conviction
that if the country is to be benefited by silver
coinage it can be only done by the issue of
silver dollars of full value, which will de-
fraud man; and a currency worth less
than it purports to be-, will, in the end, de-
fraud not only the creditors, but all who are
engaged in legitimate business, and none
more assuredly than those who are depend
ent on their daily labor for their daily bread.
(Signedl RUTHERFORD B. HAYES.
Executive Mansion, February %, 1873.