The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1878-03-07
The Presidents Veto Of the Silver Bill.


! 10 the House Of Representatives:
After a very careful consideration of House
| bill l,093, entitled "An act to authorize the
coinage of the standard silver dollar and 10
| restore its legal tender character" feel COM
PEELED TO return it to the Houselof Represent
1 atiyes in which il originated, with my OBJ
| lections to its passage. Holding the opinion
| which Expressed in my annual message til at
neither the interests of the Government nor
! OF 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 legisla-
] ton which looks to maintaining the
/ measure of both metals as their relative
! commercial values viii permit would be
/ neither unjust nor ineXpedicnt, il has been
] my earnest desire to concur with Congress IN
/ the adoption of such measures to increase the
/ silver coinage of the country rs would not
/ impair the obligations of contracts, either
| public or private, nor iniuriously affect the
| public credit. 1t is only upon the conviction
/ that this bill does not meet these essential
| requirements that feel it my duty to with
hold from it my approval. My present Of
ncial duty as to that bill permits only an at
tention to the specific objections to its pass
age, 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 tor which the Constitution has in such
cases provided.
The bill provides for the coinage of silver
dollars OF the weight of 4l2K grains each of
standard silver, to be a legal tender to their
nominal value for all debts and dues, public
ly stipulated in contracts. 1t is well known
that the market value of that number of
grains of standard silver during the past year
has been from 30 to % cents as compared with
the standard gold dollar Thus the silver
dollar authorized by this bill is worth from
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 coin as lawful money. The right to pay
duties IN silver, or in certificates of silver de-
posts, VIII, when they are issued in sufficient
afsiF ntafa int
of the revenue in gold, and thus compel
the payment of silver for both the principal
and interest of the public debt; 81 l43, 49}, 400
OF the bonded debt now outstanding was is
sued previous to February, 1873, when the
silver dollar was unknown in the circulation
of the country, and was only convenient
form of silver bullion for expectation; S5S3,
4O350 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 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 II II had /
been understood they would be paid in sill /
yer. The sum of 225,OJO,UO0 of those bonds |
has been sold during my Administration Tor /
gold coin, and the United States received the /
benefit of those sales by reduction OF the /
rate of interest to per cent. During the /
progress of these sales a doubt was suggest /
ed as to the coin in which payment OF these |
bonds would be made The public announce |
ment was thereupon authorized that it was
not to be anticipated that any further legis-
lation of Congress, or any action of any de-
partment 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 au-
thorized by law at the time OF the issue of
bonds, being the coin eXacted by the Govern
ment in exchange for the same.
In view of these facts, it will justly be re-
garded as "A 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. 1t is
said the silver dollar, made legal tender by
this bill, will, under its operations, be equiv
alcnt in value to tie 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 n coin of inferior value
to the money of the world.
The capital defect of the bill is that 1t con-
tainS no provisions protecting from its Oper-
ations 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 advantage of the depreciation of
silver in the payment of debts, to coin and
make a legal tender Il SILVER dollar or less
value than any dollar, whether
Of gold or paper, which is now lawful money
in this country, such a measure, it will be
hardly questioned, will, in the judgment of
be an act of bad faith As TO all
debts heretofore contracted the silver dollar
should be made legal tender only at its mar
let valus. The standard of value should not
be changed without the consent of both par
lies TO the contract. The National promises
should be kept with untlinching fidelity.
There Is no power to compel a nation to pay
Is just debts. Its credit depends on its honor
the nation owes what it has led or allowed
is creditors to expect. can not approve
bill which, in my judgment, authorizes the
violation of sacred obligations. The obliga-
ion of the public faith transcends all ques-
ions of profit or public advantage. Its I'M
questionable maintenance is dictate, rs
we'll of the highest experience as of the most
necessary duty, and should ever be carefully
guarded by the Executive, by Congress, by
he people. 1t is my firm conviction
hat if the country is to be benefited by
silver coinage it can be only done by the issue
If silver dollars of full value, which will de
raud no man; and currency worth less than
{ purports to be, will, in the end, defraud
not only the creditors but all who are en-
gagged in legitimate business, and none more
Issuredly than those who are dependent on
heir daily labor for their daily bread.
ISigmcdl RUTHERFORD Il. HAYES.
Executive Mansion, February ., 1878.