The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1878-03-07
THE SILVER BILL.
Pre.laent Hayes First Veto.

THE SILVER BILL.
President Hayes's First Veto.
To the House Of Representatives:
After very careful consideration of the
House Bill 1908, entitled "An act to
authorize the coinage of q standard silver
dollar and to restore its legal.tender charac-
I feel compelled to return it to the
of Representatives, in which it origi-
mated, with my objections to its passage. |.
Holding the opinion which l expressed in
my annual message, that neither the inter.
ests of the Government nor OF the people OF
the United States would be promoted by
disparagings silver as one of the two precious
metals which furnish the coinage OF the
world, and that legislation which looks to
maintaining the volume of inlrinsic money
to as full a measure of both metals as their
relative commercial value will permit
would be neither unjust nor inexped1ent, 1t
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 pubic or private, nor in
juriously affect the public credit.
1t is only on the conviction that this bill
does not meet these essential requirements
that I feel it my duty to withhold from 1t
my approval.
MY present official duty as to this bill per-
mits only an attention to specific objections
to its passage, which seem to me SO 1mpor-
tant as to Justify me in asking from the
wisdom and duty of Congress that further
consideration of the bill, for which the Con-
stitution has in such cases provided:
The bill provides for the coinage OF SILVER
dollars, of the weight Of 412H grains eacn,
&c nkc-1.~d ,.1par 20 he Iooo1 toudQr tn their
nominal value for all debts and duties, pub
lie and private, except where otherwise ex-
pressly stipulated in contracts.
1t lis we'll known that the market value of
that number of grains standard silver, dur
ing the past year, has been from ninety to
ninety-two cents, as compared with d
| sta dard gold dollar. Thus the silver dollar
authorized by this bill is worth from eight to
len 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, or in certificates of sill
yer deposits, will, whenthey are issued in
sufficient amount to circulate, put an end to
the receipts of revenue in gold, and thus
compel the payment of silver for both the
principal and interest of the public debt.
81, 143, 493, 400 of the bonded debt now out
standing was issued prior to February, 1873,
when the silv,r dollar was unknown
in the circulation of this country,
and with only a convenient form
of silver bull ion for expectation. $685.
44o,s5O Of the bonded 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
entered into the markets of the world. They
were paid for in gold when silver had
greatly deprecated, and when no one would
have boughtthem if it had been understood
they would be paid in silver. The sum OF
SIPS, 600, 900 of those bonds has been sold
during my Administration for gold coin,
and the United States received the benefit OF
these sales by a reduction of the rate OF
interest tofour per cent.
1FDarinS-the- progress or THESE sales, a
doubt was suggested as to the coin In which
the payment Of these 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 Gov
eminent, would sanction or tolerate the re-
demption of the principal Of these bonds,
or the payment of interest thereon in coin
of 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 ex.
change for the same.
In review of these facts it will Justly be
regarded as a grave breach of the public
faith to undertake to pay these bonds, prin'
cipal or interest in silver coin worth in the
marketless than the coin received for them.
1t is said that the silver dollar made q
legal tender by this bill will, under its opera.
tions, be equivalent in value to the gold
dollar. Many supporters of the bill believe
this ond uou1d mot incfifu on ottamnt In
pay debts, either public or private, in coin
of inferior value to the money of the world,
The capital defect of the measure is that il
contains no provision protecting from its
operation p~re-existing debts in case the
coinage which it creates shall continue to
be of less value than that which was the
sole legal tender when they were contracted
If it is now proposed, for the purpose Of
taking advantage of the depreciation Of
silver in the payment of debts, to coin and
make legal tender a silver dollar of less
commercial value than any dollar, whether
of gold or paper, which is now the Lawful
money of this csuntry, such a measure, il
will be hardly questioned, in the judgment
of mankind, will be an act of bad faith.
As to all debts heretofore contracted, the
silver bill should be made a legal tender
only at its market value. The standard o.
value should not be changed without thu
consent of both parties to the contract. Tht
National promises should be kept with un
finching fidelity. There is no power tt
compel a Nation to pay its just debts. IT.
credit depends on its honor. The NatioI
owes what it has led or allowed its credit
srs to expect.
/ cannot approve a bill which, in my judg
ment, authorizes the violation of sacred obi
cations. The obligation of public faith tran
cends all questions of profit or public ad
vantage. Its unquestionable maintenance il
the dictate as well of the highest experience
as of most necessary duty, and should evel
be carefully guarded by the Executive, by
Congress and by the people. 1t is my firm
conviction that the country is to be bene
flied by a silver coinage it can be done only
by the issue of silver dollars of full value
which will defraud no man. A currency
worth less than it purports to be, WI, in thu
end, defraud not only the creditors, but al
who are engaged in legitimate business, ant
none more assuredly than those who arr
dependent on their daily labor for theil
daily bread. RUTHERFORD B. HAYES,
President of the United States.
EXECUTIVE MANSION, February Is, 1878