Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1878-03-01
The Veto Message.

10 tile House Of Representatives
Alter very careful consideration OF House
bill 1903 entitled IAN act 10 authorize the
cooage of the standard silver dollar and to re-
store its legal tcGder character, | teel COM
PEELED 10 return it to the House Of Represen,
tatives, in which it originated, with my otiec'
lions 10 fits passage. Holding the opinion
which | expressed in my annual message that
neither the Interests Of The Government nor
the people OF the United States would be pro
| NOTED by di5paraging silver US one OF the TWO
preti JUS metals which furnish the Coinage OF
the world, and that legislation which, looks 10
maintaining the volume OF l0trlnslc none y to
| as full measure OF both metals IS their rela
tive commercial values would permit, would be
neither unjust or inexpedient,' it has Eeeo
my olrncst desire to concur with Congress 10
the adoption Of such measures TO increase the
silver coinage of tho country as would not I'M
par the obligations Of contracts either public
or private, nor itiurousiy affect the public
credit. 1t Is only upen the oonsioion that this
bill does not meet these essential requirements
that feel it my duty to withhold from it my
approval. My present official duty as to this
| bill permits only an attention to the specific OBJ
ieclious to its passage which seem 10 me so in
porant as to justify me in asking from the Wis
dom and duty Of Congress that further consul
eralion Of the bill for which the Constitution
has 10 such oasesproVided.
The bill provides Tor the coinage Of silver
dollars of tho weight OF 4l21 grains each of
standard silver, TO he legal tender ut their
nominal valne for all debts and dues, public
and private, except where otherwise expressly
stipulated 10 the contracts. Ii is we'll known
that The market value OF that number of grains
of silver during The past year has boen from 90
to % cents, az compared with tho standard
cold dollar. Thus the silver dollar authorized
by this bill is worth s to 10 per cont. less than
it purports to be worth, and is made a legal
tender for debts contracted when tho law did
not recoguiz, such coin az lawful money. Tho
right to pay duties in silver or 10 certificates OF
silver deposits will, Wheu they arc issued in sui
fcient amount to circulate. put M end 10 the
receipt Of revenue 10 gold. and thus compel
the payment Of silver for both the principal
and interest of the debt. One billion one hun
dred and forty three million four hundred and
ninety three thousand four hundred dollars OF
The bonded debt now outstanding was issued
prior to February, 1873, when The silver dollar
was unknown in the circulation in this country.
and was only q convenient form OF silver bull
lion for expectation. Five hundred and eighty,
three million four hundred and forty thousand
L tuTCC uuuultu duu uliJ VI SuS 'oooSe
debt has been issued since February. 1878,
when gold alono was the coin for which the
bonds we're sold, and gold alono was tho coin
10 which both parties to the contract under.
stood that the bonds would be paid These
bonds entered into tho markets Of the world.
They were paid for 10 gold when silver had
greatly depreoiated,. and when no one would
have bought them if it had been understood
! that they would be paid 10 silver. The sum
| Of 1925, 900, 900 of these bonds has been sold
during my administration for gold coin, and
theiUnite States received the benefit OF. these
sales by reduction Of the rate of interest to
4 per cent. During the progress OF these sales
a doubt was suggested as to the coin 10 which
payment of these bonds would be made. The
public announcement was thereupon auhro'
lied that it was mot to be anticipated that any
further legislation of Congress or any action Of
any department of thu Government would
sanction or tolerate the redemption OF the
principal Of these bonds or tho payment of the
interest thereon 10 coin of less value than the
coin authorized by law at the time Of the issue
Of the bonds, being the coin cxacted ~ the
Government 10 exchange for the same
i 10 view Of these facts it will be justly regard
ed as . grave breach of the public faith to 10
dcrtakc to pay these bonds. principal or inter
than the coin received for them. 1t is said
I chat the silver dollar made legal tender BY
this bill wi under its operation bo equivalent
in value to tho gold dollar. Many supporters
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 tho
world. The capital defect of tic bill is that it
contains no provision for protecting from lts
operation pre-. existing debts in case tho coinage
(which it creates shall continue to be Of less
| value than that which was tho sole legal tender
when they were contracted. Ifitis now proposed
for the purpose Of taking the advantage ofthe
depreciation of silver 10 the payment of debts to
coin and make legnt tender q 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 judgment OF man
Kind be an act of bad faith. As toal! debts here
tofore contracted. the silver dollar should 30
made legal tender only at its market value.
The standard of value should not be ohaoged
Without the consent of both parties to the con-
tract National promises should be kept with
compel a nation 10 pay its juss debts. Its
oredit depends on it's honor. The nation owes
What it has led or allowed its creditors to ex
peot. I ( III. 81. - -;
! cannot approve BILL which 10 my iudg-
msnt, authorizes the violation of sacred obliga.
| lions. ~ l..'t -.
| Tho obligation OF the public faith transcends
all questions Of profit or public advantage. Its
uIqucstionable maintenance is the dictate as
well of the Highest eXpediency as Of the most
necessary duty. and should ever be carefully
guarded by The Executive, by Congress and
! tho people. I ! e. -
1t is my firm conviction that If the country is
to ho benefited by a silver coinage it can bo
done only by the ISSUE OF silver dollars OF full
value, which will delraud no man. A currency
| worth less than it purports to DO worth will in
tho cnl defraud not only creditors, but all who
ARC engaged 10 legitimate business. and none
| more surely than those who are dependent on
their daily labor for their daily bread.
| (Signed) R. b. HAYES,
Executive Mansion, February %, 1878.
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