San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1878-03-16
The Presidents Veto Of the Silver nm
TO The House of Representatives !:

4hV wv ~ WV Vet XIII
To the House Of Representatives
After n very careful consideration of uo,
bill No. ,093, entitled "An act to author;,o use
coinage of the standard silver dollar, and , ~
restore its legal tender charactern I"a 70
compelled to return it to the House If p.ieel
sentatives, in which 1t originated, with p ns
objections to Its passage. Holding the on;n
ion which expressed In my annual messenma
that neither the interests of the Governmasne.,
nor of the people Of the United States wnu,s
be promoted by disparaging silver MS ono ~
the two precious metals which furnish ~.
which looks to maintaining the VOLUME ~
intrinsic money to as full Il measure
OF both metals rs their relative com
mercial values will permit would hs
neither unjust nor ineXpedient, it has boaUee
my earnest desire to concur with Coneroesna
in the adoption of such measures to incTeessss
the silver coinage OF the country as wonIS
not impair the obligations of contracts eitboua
public or private, nor injuriously affect tha
public credit 1t is only upon the convictinso
that this bill does not meet these Essential
requirements that feel IT my duty to with.
hold from it my approval. My present on.
cial duty rs to that bill permits only nm ~
tention to the specific objections to its pass
age, which seem to me SO important az IN
duty of Congress that further consideratio,ru
of the bill for which the Constitution has H.
such cases pOvided.
Tho bill provides for the coinage of silvor
dollars OF the weight of 4l2h grains each ~
standard silver, to be legal tender to Their
nominal value for all debts and dues, public
and private, except where otherwise ex.
pressly stipulated in contracts. 1t is well
known that the market value of that number
| of grains of standard silver during the mast
year has been from 30 to 92 cents, las compared
with the standard gold dollar Thus the sill.
yer dollar authorized by this bill is worth
from s 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
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 recent
of the revenue in gold, and thus compel
the payment of silver for both the PRINCIPAL
aud interest of the public debt; 81, l43, 1934OV
| of the bonded debt now outstanding was is.
sued previous to February, 1875, when tho
| silver dollar was unknown in the circulation
of the country, and was only convenient
| form of silver bullion for expectation; S5S3.
t035O 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 would
be paid. These bonds entered into the mar.
when silver had greatly deprecated, andWhen
no one would have bought them if it had
been understood they would be paid in silver
be ne sn Of %H o th4se bonds n
coin, and the United States received the ben.
eft of those sales by reduction of the rates
of interest to per cent During the progress
of these sales 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 IN.
ticipated 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 q grave breach of the public faith
to undertake to pay these bonds, principalor
interest, in silver coin, worth in the market
less than the coin received for them. 1t 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.
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 a silver dollar of less commercial
paper, which is now lawful money in this
country, such measure, it will be hardly
questioned, will, in the Judgment of man.
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 unflinching fidelity.
There is no power to compel nation to pay
its just debts. Its credit depends on its honor
the nation owes what it has led or 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
lions of profit or public advantages Its I'M
questionable maintenance is dictate, as
well 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 no man; and 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 Il. HAYES.
Executive Mansion, February %, 1878.