The star. (Reynoldsville, Pa.) 1892-1946, 1893-08-09
BLAND COINAGE,
HISTORY OF ITS PASSAGE
Through Congress in 1878 and oftne Cir
1umstances Leading 10 ats
Enactment.

One Of the consequences OF this was the
organization OF the Grcenback party
which maintained that the mere fiat, or
declaration of the Government, was suf-
hcient to make money of that which
otherwise had no value. The act of
March 1S, 1869, was passed for the pur-
pose Of strengthening the public credit.
II pledged the Government to the pay
ment in coin, or its equivalent, of all obli
cations, notes and bonds except those
where the law authorizing the issue
stipulated that payment might be made
In lawful money, which simply meant
legal tender notes. This law was subsc-
quenty the occasion of much adverse
criticism, especially after the stoppage of
the coinage of the silver dollar and the
removal Of its legal tender quality. The
effect, OF course, was to make the Gov
efnment bonds payable in gold coin.
Early In 1875 the act for the resump-
tion of specie payments, on January l,
1879, became a law This result was
successfully accomplished. Secretary
Sherman, in his report IN December, s77,
said that In the work of refundiug he had
informed his associates that as the Gov
ernment exacted in payment for bonds
their full face In coin, IL was not antici-
pdttu tudt any luturc OF IOn-
gress OF any action of any department of
the Government would sanction or toler-
ate the redemption of the principal Of
these bonds, or the payment of the inter
est thereon. in coin Of less value than the
coin authorized by the law at the time of
their issue, being gold coin. At the
same time PresidentIHayes, in his mess
age, said he did not believe that the
interests of the Government or the people
would be promoted by disparaging silver,
but held II should be used only at its
commercial value. Congress, however,
adopted on the pSth of January, 1878, a
concurrent resolution, which did not re-
quire the Presidents signature, declaring
their belief that all bonds OF the United
States were payable in silver dollars Of
tl2lt grains, and that to restore such
dollars as full legal tender for that
purpose would not be violation of public
faith or the rights OF the creditor.
On the I'd of March, 1877, the monetary
commission appointed under Joint resolu-
ton of August l5, 1875, made an ex.
haustive report. The members made di.
verse mendations One suggestion
was that the United States should re-
monetze silver without regard
to the future policy of Europe,
and that a law should be
passed fixing lbl< to as the standard OF
relative value between silver and gold In
this country. Others favored remonetiza-
ton on the basis of 10 to ]. third
opinion was that IL was not expedicnt to
coin silver dollars to be a legal tender
currency, and that the introduction of
silver as currency should be postponed
until the effort to secure the co-opera.
tion of other nations had been faithfully
maze. Other members Of the Commits.
SION held that double standard was an
Illusion and an impossibility, and declared
that the proper place for silver in the
monetary system to be that of subsidiary
or token currency considerably over.
valued by law, and legal tender only
within certain limits. They, therefore,
advocated the coinage of silver dollars of
S4o $40 grains to be a legal tender for
sums not over $2O-and to take the place
OF all paper currency Of less denomina.
tions than s5
On the 5th of November, 1877, the
House passed bill introduced by MIR.
Bland for the free coinage of silver dol.
lars of 4ialf grains full legal tender for
all debts, public and private. The Sen
ate amended It so as to limit the coin
age TO not more than $4,000, 900 nor less
than 1000, 900 per month, all seignor-
age or profit 10 accrue TO the Treasury
section was added at the suggestion OF
Senator Allison authorizing the Presi-
dent to invite other nations to take part
In a conference with a view to the adop-
ton of common ratio of gold and silver
During the extended debate on the meas
ure Senator Morrill,, of Vermont, pro.
nounced IL fearful assault on the public
credit. 1t resuscitated the obsolete dol.
lar which Congress entombcd in 1884
worth less than the greenback in gold
and yet 10 be a fu.l legal tender. He
thought that the causes OF the deprecia-
tion of silver were permanent. The fu.
q mil q nln nna
but 1t must finally settle at a much lower
point, Nothing less than national will
ard power could mitigate its tall. Sen.
ator Wallace, OF this state. offered an
amepdment providing that . 100, 900, 900
should be coined in silver dollars within
three years, and then coinage should
cease II bullion should be more than 8 per
cent. below par. The amendment was
defeated. as were others offered by Mr..
Blaine and others to approximate the
proposed silver dollars value to that Of
the gold dollar An amendment of SEN
ator Chaffee providing for the issue of
certificates OF not less than $40 IN ex.
change for silver com deposited and re-
deemable in the same was adopted
All the Senate amendments were con-
Cured in by the House. Presi.
deEt hayes vetoed the bill. He SAID
the silver dollar authorized by II was
worth TO 10 per cent. less than IL pur-
ported TO be worth, and was made a legal
tender tor debts contracted when the law
did not recognize such coin as lawful
money. The effect would be 10 put an
end 10 the receipt of revenue in gold,
and thus compel the payment of silver
for both the principal and interest of the
public debt, which would be a grave
breach of public faith. If the country
was to be benefited by silver coinage ii
could only be done by the issue of silver
dollars of full value, which would de-
fraud no man. A currency worth less than
II purporied to be worth would In the end
defraud not only creditors, but all en-
gagged in business. and especially those
dependent on their daily labor. The bill
was. however. passed over the veto.
According TO Mint Director Leech, the
stock OF money on hand January ]. 1878,
just before the new silver legislation
commenced, was:
Gold S229, ,000, 900
Legal tender Treasury notes. :. 346, ,0Bl, Ole
National bank notes. 32l ,672 sos
Total ...........................S Ss97, 1883, Del
Thus II 10 seen our currency was en-.