Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1878-03-15

the volume OF intrinsic money TO a. full mea-
sure Of both metals as their relative CONNER
cial value will permit would be neither unjust
nor inexpedient. Il has been my earnest desire
10 concur with Congress in the adoption OF
such measures TO increB e the silver coinage Of
the country g. would not impair the obligations
o. contracts, either public or private, or inlur
ously affect the public ere 1t. II il only on the
conviction that this b II does not meet these essen
tial requirements that feel it my duty t. with
hold from Il nv approval. MY presen, official
duty as to that bill permits only sn attention to
the specific objects OF the bill which seem to
re so important as 10 justify me in asking
from the wisdom and duty OF Congress that
further consideration OF the bi Tor which the
Constitution has in sucn way provided.
The bill provides for the coinage Of silver
dollars OF the weight of 4i2lg grains each Of
standard silver to be legal tender to their
nominal value for all debts and dues, public
and private, except where otherwise expressly
stipulated in the contract. II is well known
that the market value Of that number Of grains
OF standard silver during the past year has
been from ninety to ninety-two cents as COM
pared with the standard gold dollar. Thus
the silver dollar authorized by this bill is
worth from eight TO ten per centum less than
it purports to be worth, and is made legal
tender for all debts contracted when the law
did not recognize such coins as lawful money.
4ub W pay uullbb III hhNbA VI III
OF silver deposit will, when they are issued in
sufficient amount to circulate, put an end to
the receipts to revenue in gold, and thus COM
pei the payment of silver for both the principal
and interest of the public debt. 81, 49, 430, 400
OF the bonded debt now outstanding was issued
prior to February, 1873, when the silver dollar
was unknown in the circulation of this country,
and with only convenient form of silver bull
lion for expectation.
1888, 440, $50 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 deprecfated, when no one would
have bought them if it had been understood
they would be paid 10 silver.
The sum of 1926 900, 900 Of those bonds has
been sold during my administration for gold
coin, and the United States received the bene-
fit of these sales by reduction Of the rate of
interest to four per centum.
During the pr 'gress of these sales a 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 anticipated that any further
| legislation of Congress, or any action OF any
department of the government would sane
ton or tolerate the redemption of the princi-
pal of these bonds or the payment Of the in
terest thereon in coin enacted by the govern
ment in exchange for the same.
In view Of these facts it will be justly regarded
as grave breach Of the public faith to under
take to pay those bonds, principal or interest,
in silver coin worth in the market less than the
coin received for them.
1t is said that the silver dollar made legs
tender by this bill will, under its operation, be
| equivalent in full to the gold dollar. Many
supporters Of the bill believe this and that it il
not just to pay debts either public or private
! in coin of inferior value of the money Of the
world. The capital defect of the measure is
that it contains no provision protecting from
its operation preexsttng 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 il
now proposed for the purpose.of taking advan
tage OF the depreciation of silver in the pay
ment of debts to coin and make legal-tendel
a silver dollar of less commercial value than any
dollar, whether Of god or paper, which is nov
lawful money Of this country, such measure
it will be hardly questioned, will, in the iudg
ment of mankind, be an act Of bad faith as t
all debts heretofore contracted.
The silver dollar should be made lega
tender only at its market value. The stand
ard of value should not be changed without
blO COlb0uG vi DObu pdlllCb W VIC SOuJLdCl
National promises should be kept with I'm
tiiuching fidelity.
There is no power to compel nation to pa,
its present debts. Its credit depends on it
honor, the nation owing what it had led it
creditors to expect. I cannot approve a bill
which, in my Judgment, authorizes the viola
ton of sacred obligations. The obligation O
public faith transcends all questions of profit
or public advantage. Its unquestionabl
maintenance is the dictate as well Of tn
highest experience as of the most necessar
duty and should ever be carefully guarded b
the Executive, by Congress and by the people
1t is my firm conviction that / he country
TO be benefited by silver coinage. it can b
done only by the issue of silver dollors of fu
value which will defraud no man; and currenc
less than it purports to be will i'll the end dc
fraud not only creditors, but all who are Ell
gagged in legitimate business, and none nor
: assuredly than those who are dependent o
their daily labor for their daily bread.
(Signed) RUTHERFORD B. HAYES,
President of the United State
In the House the bill WAS passed over tt
veto by 1876 to 70, and in the Senate the bi
was passed over the veto by 46 to 19-mol
than the required two-thirds majority in rot
cases.