The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1878-03-07
THE VETO MESSAGE.

THE VETO MESSAGE.
We print below the text of President Hayes
message to the House, giving his reasons for
not signing the Bland Silver bill
EXECUTIVE MANSION, Feb. 49, 1878.
To the House of Representatives
After very careful consideration of House
bill 1903, entitled 60 An act to authorize the
coinage Of the standard silver dollar, and to
restore it's legal-tender character" I feel COM
PEELED to return it to the House of Representa-
tives, in which it orig inated, with my objec-
lions to it's passage. Holding the opinion,
which I expressed in my annual message,
"that neither tho 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 coinage
of the world, and that legislation which looks
to maintaining the volume of intrinsic money
| to as full a measure of both metals as
| their relative commercial values 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, nor injuriously affect
the public credit. 1t is only upon the convic-
ton that this bill does not meet these essential
requirements that I feel it my duty to withhold
from it my approval. My present official duty
as to the bill permits only an attention to spe-
cltic 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 constitr-
ton has in such cases provided.
| The bill provides for the coinage of silver
dollars of the weight of 41215 grains each, of
| standard fO hn and of fbcir.
nominal value for all debts and dues, public
and private, except where otherwise expressly
stipulated in contracts. It is well known that
the market value of that number of grains of
standard silver during the past year has been
from 80 to 81 cents as compared with the stand
ard gold dollar. Thus the silver dollar author
lied by this bill is worth 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 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 revenue in gold, and thus compel the
| payment of silver for both the principal and
interest of the public debt Of the bonded
| debt now outstanding, 81, 149, 493, 400 was is
| s1ed prior to February, 1873, when the silver
| dollar was unknown in circulation in this coun-
try, and WAS only convenient form of silver
bullion for expectation; 1858, 440, $50 of the
bonded debt has been issued since February,
1873, when gold alone was the coin for which
bonds were sold, and gold alone was the coin
In which both parties to the contract under
| stood 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 bought them if it had been under
stood that they would be paid in silver. The
sum OF 1926, 100000 of these bonds has been
sold during my administration for gold coin,
and the United States received the benefit of
these GALES by reduction of the rate of inter
est 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
thereupon authorized that it was not to be an
ticipated that any further legislation Of Con-
gress or any action of any department of the
Government, would sanction or tolerate re-
demption of the principal of these bonds, OF
payment OF interest thereon, in coin of less
value than the coin authorized by law at the
time OF thelssue of bonds, being the coin ex-
acted by the Government in exchange for the
same.
In view of these facts. it will be Justly re-
garded as grave breach of public faith to IN
dert4ke to pay these bonds principal or in
terest in silver coin worth in the market less
than the coin received for them. It is said
that the silver dollar made legal tender by
this bill will, under its operation, 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 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 contains no provision pro-
tectlng from its operation pre-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 ad-
vantage OF the depreciation of silver in pay
ment OF debts, to coin and make legal tender
d silver dollar of less commercial value than any
dollar, whether of gold or paper, which is now
lawful money in this country, such measure,
it will hardly be questioned, will, in the judg-
nent 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 standard of value
should not be changed without the consent of
both parties to the contract. National promises
should be kept with unfinching fidelity. There
ID no power to compel nation to pay it's Just
debts. Its credit depends on it's honor. The
nation owes what it has led or allowed it's
creditors to expect. cannot approve bill
which, in my judgment, authorizes the viola
ton of sacred obligations. The obligation of
public faith transcends all questions of profit
tenance is the dictate as well of the highest |
expectancy as OF the most necessary duty, and
should ever be carefully guarded by the Execu'
tive, 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 defraud no man. currency
worth less than it purports to be worth will in |
the end defraud not only the creditors, but all |