The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1878-03-07
THE VETO MESSAGE.


authorize the coinage of the silver dol
lar and to restore its legal tender char
acter,'' feel compelled to return 1t to
the house of representatives, il which II
originated, with my objection to its pas
sage. Holding the opinion which ex-
pressed in my annual message, that
neither the interests of the government
nor the people of the United States
would be promoted by disparaging sill
yer as one of the two precious metals
which furnish the coinage of Tie world,
and that legislation which looks to con-
tracing the volume of intrinsic money
TO as full q measure of both metals as
their relative commercial value will per-
NIT would be neither unjust nor mex
pedient, 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 I'M
pair the obligation of contracts, either
public or private, or 1nJur1ousiy affect
the public credit.
1t is only on the conviction that this
bill does not meet these essential re-
uuirements that L feel it my duty to
withhold from it my approval. Ny
present official duty as 80 this bill Will
permit only an attention to the specific
me SO important as to justify men III
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 pro-
vides for the coinage of silver dollars
of weight OF 4121 grains each Of stand
ard silver, to he q legal tender to their
nominal value for all debts and duties
public and private, except where other
wise expressly stipulated il 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 90 to 80 cents as compared with
the standard gold dollar. Thus the silver
dollar authorized by this bill is worth
from eight to ten per cent. less than IL
purports to be worth, and is made
legal tender for debts contracted when
the law did not recognize such coins as
lawful money. The right to pay duties
in silver. or in certificates OF silver de-
posts, 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 principle and in
terest OF the public debt. One billion,
one hundred and forty-three million,
four hundred and ninety-three thousand
four hundred dollars of the bonded debt
now outstanding was issued previous
to February, 1878, when the silver dol
lar was unknown in the circulation OF
this country, and with only a convenient
form of silver bullion for expectation.
Five hundred and eighty-three mil
lions, four hundred thousand three hun
bred and fifty dollars 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 the bond
would be paid. Those 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 it had been
understood they would be paid in silver.
The sum of 1925, 600, 600 of those bonds
has been sold during my administration
for gold coin, and the United States re-
ceived the benefit of those sales by re-
duction Of the rate of interest to four
per cent. During the progress of those
sales a doubt was suggested as to the
coin in which the payment of these
bonds would be made. The public an
nouncement 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 sanction or tolerate
the redemption Of the principal of these
bonds Or of the payment of interest
thereon in any other coin that that e1-
acted by the government in exchange
for the same. liz view Of that fact it
will be Justly regarded as 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 received for them. It is said
the silver dollar made legal tender
by this bill, viii under its operations be
equivalent in full to gold dollar.
Many supporters of the bill believe this
and would not justify an attempt to pay
the debts, either public or private, in a
coin Of inferior value to the money of
the world. The capital defect of the
measure is that it contains no provision
protecting from its operation pre-exist-
| ing 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 adj
vantage Of the depreciation of silver in
| payment of debts to coin and make as
legal tender silver dollar of less com
mercial value than a dollar, whether of
| gold or paper, which is now lawful
| money of this country, such measure it
| will be hardly questioned viii in the
| Judgment of mankind be an act of bad
| faith as to all debts heretofore contract
! ed. The silver dollar should be made
L., L h.. l.
| The standard of value should not be
charged without the consent of both
| parties to the contract. National prom
ises should be kept with unfinching fl
| deity. There is no power to compel
a nation to pay its just debts. Its credit
| depends on its honor, the nation owing
what it has led its creditors to expect.
[ cannot approve a bill which i'll my
| Judgment authorizes the violation of
| sacred obligations. The obligation of
| public faith transcends all questions of
profit or public advantage. Its unques-
| tionable maintenance is the dictate as
we'll of the highest experience as OF the
| most necessary duty, and should ever
be carfully guarded by the executive,
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 yalue-wiich defraud no man.
and currency worth less than it purports
| to be will in the end defraud not only
creditors, but all who are engaged in
legitimate business, and no one more
assuredly than those who are dependent
on their daily labor for their daily bread.
(Signe6
RUTHFoRD B. HAYES,
President of the United States.