Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1878-03-08

/ 10 me LOUsc ~ Representatives..
After very careful consideration of House
! bill ,Og3, entitled AN act to authorize the
coinage Of the standard silver dollar, and to
restore its legal tender character, feel COM
! PEELED to return it to the House of Represen-
tatives in which il originated with my obiec-
| tons TO its passage Holding the opinions
which / expressed in my annual message
that neither the interests of the government
nor the people of the United States would be
promoted by disparaging silver as one of the
two precious metals which furnish the coin
age Of the world, and that legislation which
looks to maintaining the volume of intrinsic
money to rs full measure of both metals as
their relative commercial values will permit
would be neither unjust nor inexpedient," il
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 nor injuriously affect
the public credit. 1t is only upon 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 du-
ty 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
dollars of the weight 412I grains each of
standard silver, to be n legal tender at their
nominal value for all debts and dues public
and private, except where otherwise expressly
stipulated in the contracts II is well known
that the market value of that number of
grains of standard silver, during the past year.
has been from 90 to 90 cents rs compared
with the standard gold dollar Thus the sill
1,1Io,. b,,f l.,
10 per cent less than ii purports to be worth
and is made a legal tender for debts contract
ed when the law did not recognize such coins
as lawful money. The right to pay duties in
silver or in certificates of silver deposits will
when they are issued in sufficient amount TO
circulate, put an end to the receipt of reve-
nue. in gold and thus compel payment of sill
yer for both the principal and interest of the
public debt Sl,143, 1913, 400 of the bonded
debt now outstanding was issued prior to Feb
ruary, 1873, when the silver dollar was I'M
known in circulation in this country. and was
only convenient form of silver bullion for
expectation. $3.50, il0, $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 i'm
which both parties to the contract understood
that the bonds would be paid. These bonds
entered into markets of the world They
were paid for in gold when silver had greatly
deprecated, and when no one would have
bought them if it had been understood that
they would be paid in silver The sum of
S22j, 600, 600 of these bonds has been sold
during my administration for gold coin. and
the United States received the benefit of these
sales by the reduction of the rate of interest
to per cent During the progress of these
sales doubt was suggested as to the coin in
which payment of these bonds would be made.
The public announcement was therefore au-
thorized that it was not to be ANTICIPATED that
any further legislation of Congress 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 the interest thereon in coin of less value
than the coin authorized by law at the time of
the issue of the bond, being the coin exacted
by the government in exchange for the same
In view of these facts it will Justly be re-
garded as n grave breach of the public faith
to undertake to pay these bonds, principal or
interest in silver coin, worth in the market
less than the coin paid for them. 1t is said
that the silver dollar made a legal tender by
this bill will, under its operation, be eduiva-
lent in full to the gold dollar Many sup
porters of the bill believe this, and would not
justify nm attempt to pay debts either public
or private in coin of inferior value to the mon
ey of the world. The capital defect of the
measure is that it contains no provision pro-
tecting from its operation pre-existing debts.
in case the courage which it creates shall con
tinue to be of less value than that which was
the sole legal tender when they were contract
ed II it is now proposed, for the purpose of
taking advantage Of the depreciation of silver
in the payment of debts, to coin and make n
legal tender n silver dollar of less commercial
value than any dollar whether of gold or pa
per, which is now lawful money in this coun-
try, such n measure it will be hardly ques-
toned, will, in the judgment of mankind, be
an act of bad faith as to all debts heretofore
contracted. The silver dollar should be made
a legal tender only at its market value. The
standard of value should not be changed
without the consent Of both parties to the con
tract. National promises should be kept with
unhinching fidelity. There is 10 power TO
compel nation to pay It's Just debts. It's
credit depends on its honor The nation owes
what it has led or allowed its creditors TO ex-
poet l cannot approve bill which. in my
judgment authorizes the violation OF sacred
obligations. The obligation of the public
faith transcends all questions of profit or pub
lie advantage. It's unquestionable mainte-
nance is the dictate as well of the highest ex-
pediency as of the most necessary duty. and
should ever be carefully guarded by the Ex-
ecutive, by Congress, and by the people 1t
is 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 full value, which will defruud no man A
currency worth less than it purports to be
worth will in the end defraud not only cred |
itors, but all who are engaged in Legitimate
business; and none more surely than those
who are dependent ON their daily labor for
their daily bread.
RUTHERFORD b. HAYES
President of the United States.
EXECUTIVE MANSION, Feb. 2S, 1873.