The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1878-03-20
THE SILVER BILL A LAW.

The Presidents Veto, and the Bill Passed
by both Houses over the Veto.
The following is the fun text Of the Presi-
! dents message vetoing the silver bill;
After a very careful consideration Of House
| bill 1898, entitled can act to authorize the
coinage Of the silver dollar and to restore its
! legal tender character, feel compelled to re-
turn it to the House of Representatives, in
which il originated, with my objection to It's
passage. Holding the opinion which l ex-
pressed in my annual message, that neither tie
interests Of the government nor of the people
of the United States would be promoted by
disparaginR silver as one of the two precious
metals which furnish the coinage Of the world,
and that legislstion which looks to maintaining
the volume of intrinsic money to as full mea-
sure of both metals as their relative CONNER
cial value will permit would be neither unjust
nor inexpedient, it has been my earnest desire
to concur with Congress in the adoption of
such measures TO increase the silver coinage Of
the country as would not impair the obligation
of contracts, either public or private, or fnju-
riously affect the public credit. IL is only on
the, conviction that this bill does not meet these
essential requirements that feel it my duty
to withhold from il my approval. My present
official duty as to that bill permits only an at
tention to the specific objects Of 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
vided.
The bill provides for the coinage of silver
dollars OF the weight Of Alps 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 ninety to ninety-two cents as COM
pared with the standard gold dollar: Thus the
silver dollar authorized by this bill is worth
from eight to ten per centum less than it pur-
ports to be worth, and is made legal tender
for debts contracted when the law did not re-
cognize such coins as lawful money. The
right TO pay duties in silver or in certificates of
silver deposit will, when they are issued in
sufficient amount to circulate, put an end to the
receipts to revenue in gold, and thus compel
the payment of silver for both the principal
and interest of the public debt. 81 IA, ,439, 400
of the bonded debt now outstanding was Issued
prior to February. 1873, when the silver dollar
was unknown in the circulation of this country,
and with only a convenient form Of silver bull
lion for expectation.
$583, ,440, $50 of the bonded debt has been
issued SIM 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 we're paid for in gold when silver
had greatly deprecated, when no one would
have bought them if it had been understood
! they would be paid in silver
The sum of 1925, ,O0O, 900 of those bonds has
been sold during my administration for gold
coin, and the United States received the bene-
fit of those sales by reduction of the rate Of
interest to four per centum.
During the progress of those sales doubt
was suggested as to the coin in which payment
of those bonds would be made. The public
! announcement was thereupon authorized that
! it was not to be anticipated that any further
| legislation of Congress, or any action of any
department Of the government, would sane
/ ton or tolerate the redemptir n OF the princi-
! pal of those bonds or the payment Of the IN
| terest thereon lin coin exacted by the govern
meut in exchange for the same.
! 1t view of that fact it will be justly regarded
as grave breach of the public fai h to under
take 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 a legal
tender by this bill will, under its operation. be
/ equivalent in full TO the COLO dollar. Many
supporters Of the bill believe this and that It
is not just to pay debts either public or pri-
vate in coin of inferior value of the money of
the world The capital defect of the measure
is that is contains no pr vision protecting from
| its operation pre-exi-ting debts in case the
| coinage which it creates shall continue to be
of les value than that which was the sole le-
| gal-tender when they were contracted. IL it
| is now proposed for the purpose OF taking ad-
| vantage of the depre citation Of silver in the
| payment Of debts to coin aud make a legal
tender silver dollar of less commercial value
than dollar, whether OF gold or paper, which
is row lawful money OF this country. Such a
measure, it will be hardly questioned, Will, in
the Judgment of mankind. be an act of bad
faith as TO all debts heretofore contracted.
The silver dollar should be made legal
! tender only at its market value The stand
ard Of value should not be changed without
the consent of both parties to the contract.
National promises should be kept with un-
fnching fidelity.
There is no power to compel nation TO pay
its present debts Its credit depends on its
honor, the nation owing what it has led its
creditors to expect. / cannot approve bill
which, in my Judgment, authorizes the viola
tion of sacred obligations. The obligation of
public faith transcends all questions of profit
or public advantage. Its unquestionRble
maintenance is the dictate as well of the
highest experience as of the most necessary
duty, and should ever be carefully guarded by
the Executive, by Congress and by the people.
II il my firm conviction that if the country is
TO be benefited by silver coinage, it can be
done only by the issue of silver dollars of fnll
value which will defraud no man; and curren-
cy less than it purports to be viii in the end
defraud not only creditors, but all who are en-
gagged IN legitimate business, and none more
| assuredly then those who are dependent on
their daily labor for their daily bread.
(Sgned) RUTHERFORD b. HAYES,
President of the United States.
In the House the bill was passed over the
veto by l9e to 49, and in the Senate the bill was
passed over the veto by 46 t. 19-more than
] the required tWo-thirds majority in both cases.