Year: 1877

! would be promoted by disparaging sill
: yer as one of the two precious metal
which furnish the coinage of the world
and that legislation which looks t.
maintaining the volume of intrinsic


money to as full measure of both me
; tails as their relative commercial values
, will permit would be neither unjust no
inexpedient, I must ask your indulgence


to brief and definite statement of Ger
tain essential features in any such legis
; lative measure which feel it my duty


to recommend. ta-


, do not propose to enter the debate
represented on both sides by such able


dispurants in Congress and before the


people and in the press as to the exten1


to which the legislation of any one ma


tion can control this question, even


within its own borders, against the uh'
} written laws oftrade or the positive laws


of other governments. The wisdom o1


Congress in shaping any particular law


that may be presented for my approval


may wholly supersede the necessity o1


my entering into these considerations,


and / willingly ayeiay either vague ol
4 Intricate Inquiries. It is, only certain
plain and practical traits of such legisla.
tion that desire to recommend to your
attention. In any legislation providing


for silver coinage, regulating its value
and imparting to it the quality of legal
tender, it seems to me of great import
ance that Congress should not lose sight
of its action as operating in a two-fold
capacity and in two distinct directions.


If the United States government were
free from a public debt its legislative
dealing with the question of silver coin
age would be purely sovereign and gov
ernmental, under no restraints but those
good as affected by the proposed legisla.
ton. But in the actual circumstances
of the nation, with vast public debt
distributed very widely among our own
citizens, and held in great amounts also
abroad, the nature ofthe silver coinage
measure as affecting this relation of the
government to the holders of the public
debt becomes an element in any propos-
ed legislation of the highest concern.


| The obligation of the public faith
transcends all questions of profit or pub
lie advantage otherwise. Its unques-
tionable maintenance is the dictate as
well of the highest expediency as of the
most necessary duty, and will ever be
carefully guarded by Congress and the
people alike. The public debt of the
United States to the amount Of $729, ,OOO,-
900 bears interest at the rate of six per
cent. and sos, 900, 600 at the rate of five
per cent. and the only way in which the
country can be relieved from the pay.
ment of these high rates Of interest is
by advantageously refunding the inde-
btedness. Whether the debt is Ultimate
ly paid in gold or in silver coin is of but
little moment compared with the possi-
BILE reduction of interest one third by re-
funding at such reduced rate


! If the United States had the unques.
toned right to pay its bonds in silver
coin, the little benefit from that process
would be greatly over balanced by the
injurious effect of such payment if made
or proposed against the honest convic-
tions of the public creditors.


| All the bonds that have been issued
since February 12, 1873 when gold be-
came the only unlimited legal tender,
metallic currency of the country are
justly payable in gold coin or in coin of
equal value. During the time of these
issues the only dollar that could be or
! was received by the government in ex-
| change for bonds was the gold dollar to
require the public creditors to take in
repayment any dollar of less CONNER.
cial value would be regarded by them
as a reputation of the full Obligatic n
assumed. The bonds issued prior to
1873 were issued at a time when the
gold dollar was the only coin in circula-
tion, or contemplated by either the gov
efnment or the holders of the bonds as
the coin which. they were to be paid.


1t is far better TO pay these bonds in
that coin than to seem to take advant-
age of the unforeseen fall in silver hull
linn To Sr1n
thus made so much less valuable. The
power Of the United States to coin mon
ey and to regulate the value thereof
ought never to be exercised for the pur-
pose OF enabling the government to pay
its obligations in coin of less value
than that contemplated by the parties
when the bonds were issued. Any at.
tempt to pay the national Indebtedness
in coinage of less commercial value
than the money Of inc world would in


volve a violation Of the public faith and
work lrreparable injury to the public
credit. 1t was the great merit of the act
OF March, 1863, in strengthening the
puhlio credit, that it removed all doubt
as to the purpose of the United States to
pay their bonded debt in coin. The act
was accepted as pledge of public faith.
The government has received great
benefit from it in the progress thus far
made in refunding the public debt at
low rates of interest. An adherence to
the wise and just policy of an exact oh.
servanpe IF the public faith will enable
the government rapidly to reduce the
burden of interest on the national debt
to an amount exceeding $20, 0,000, 600 per
annum, and effect an aggregate saving
20 the United States of more than $780,
O00, 600 before the bond can be fully paid.
In adapting the new silver coinage to
the ordinary uses of currency in the ev-
cry day transactions of life, and presar;b-
ing the quality of legal tender to be as
signed to i, 9 9onsideration of the first
Importance should be so to adjust the
ratio between the silver and the gold
coinage, which now constitutes aur
desired end of Maintaining the ciroula-
ZION OF the two metallic currencies, and
keeping up the volume of the two pre-.
cious metals as our intrinsic money.


! 1t is mixed question for scientific
reasoning and historical experience to
determine how far and bY what methods
practlcs. equilibrium can be maintain
ed which Will keep both metals in cir
culation in their appropriate spheres of
common use. An absolute equality of
commercial value, free from disturbing
| fluctuations, is hardly attainable. and
without it an unlimited legal tender for
private transactions assigned to both
metals would irresistibly drive out of
circulation the dearer coinage and ais,
appoint the principal object proposed hv
the legislation in view J anorabend


therefore, that the two conditions of a
near approach to equality of commercial
value between the gold and silver coin.
age OF the same denomination and of a
| titnltatlnp Of the amounts for which the
silver coinage is to be legal tender are
essential to maintaining both in circula.
tlon. lf fthese conditions can be success.
fully observed the issue from the mint
or silver dollars would afford material
assistance to the community in the
transaction in redeems BILE paper money,
and waqld facilitate the resumption OF
specie payment and Its permanent estab-


lishinent. Without these canditions I


fear that only mischief and misfortune


would flow, from coinage of silver
dollars with the quality Of unlimited


legal tender even in private transactions,
10