Year: 1877

Waverlng III purpose or unsteadiness In meth


DDS, so lar from avoiding or reducing the in


convenience nseperabie from the transition


from an irredeemable paper currency, could


only tend to increased and prolong dis
| turbancc IN values, and unless relieved must


end III serious disorder, dishonor and disaster


III the financial affairs of the government and


OF the people. The mischief which | appre


bend and urgently deprecate is confined To


no class OF the people, indeed, but seems to


me most certainly to threaten the industri-


ons masses, whether their occupations are of
skilled or common labor. To them it seems


to me 1t ,s ot prime Importance that their Ia
| Dor should be compensated in money which


is III itself fixed in cxchangeable value bv


beng irrevocably measured by the labor
necessary to its production This perman-
ent quality of the money of the people is
sought for and can only be gained by the re-
sumption of specie payment. The rich. the
speculative, the operating, the money deal
ing classes, may not always feel the mischiefs
Of or may find casual profits i'll variable
currency. but the misfortunes of such a cur
rency to those who are paid salaries or wages
are inevitable and renedyless


THE SILVER QUESTION.


Clssely connected with this general subject
of resumption of specie payments is one of
subordinate but still Of grave Importance.
| mean the readlustment Of our coinage sys-
TEN by the renewal of the silver dollar as an
element Ill our specie currency, endowed by
legislation with the quality of a legal tender
to greater OF less extent. As there is 70
al nf 81.
constitution, to com money and regulate the
ralue thereof, and as this power covers the
whole range Of authority applicable to the
metal, the rated value and the legal tender
quality which shall he adopted for coinage,
the considerations which should induce or
discourage particular measure connected
with the coinage belongs clearly to the
province of Legislative discretion and of pub
lie eXpcdiency Without intruiing upon this
province OF legislation N the. least, have
yet thought the subject Of such critical I'M
p"rtaEcc III the actual condition of our affairs
as to present an occasion for the exercise 0f
the duty imposed by the constitution on the
president oi recommending to the considcra-
ron OF congress such measures rs lie shall
judge necessary and c1pc,licnt. Holding the
npinIon is | do that neither ;he interests of
tie government nor of the people Of the
United States would be promoted by ,!is,rar-
aging silver as one of the two precious metals
which furnish the coinage of the world and
that legislation which looks to maintaining
the volume Of intrinsic money to as full
measure of both metals rs their relative COM
mercal values will permit, Will be neither
unjust nor eXpcdient, | must ask your indul-
.cnce to i brief and definite statement OF
certain essential features. In any such leg
IsiatIye measures which feel 1t my duty Ia
recommend, ! don't propose to enter the de
bate represented on both sides by such able
dIsputan.S III congress and before the pGCple
and N the press, ;,s 10 the extent To which
tie legislation Of any one nation can control
this question even within its Own borders
against the laws of trade or the positive
laws of other governments The wisdom OF
congress III Shaping any particular law that
may he presented for my signature and ap
prevail, may wholly Supcrcodc the necessity
Of my entering INTO these oarSiaerations, and
| willingly avoid either VAGUE or intricate
inquiries. 1t Is only certain PLAN and prac-
teal traits of such legislation that | desire
to rcc;:i.lmerd to your attention. In any
legislation providing for silver coinage, resu-
iatlng It's value and imparting to 1t the quail
ity of legal tender 1t seems to me OF great
Importance that congress should not lose
SIGHT 0f rs action Is operating III tT0-iGid
capacity and TWO distinct directions. II tie
United States government were Tree from
public delt It's legislative dealing with the
question Of silver coinage would be purely
sovereign anu the government under no re-
strants but those of constitutional power,
and the public good as effected by the pro-
posed legislation bat IN the actual circum-
stances of the nation with a vast public debt !
distributed very widely among our own citi-
zens and held III great amon.i.s also abroad,
the nature Of the silver coinage measure
eiicctins this relation OF the government To
holders of public debt, becomes an object IN
any proposed legislation of the highest con
cern. Tie obligation of the public faith
tra.nscends all questions Of private or pubic
advantage, otherwiselts unquestlonao.em mann
tenance is the dictate rs well OF the highest
expediency rs of the most necessary duty,
and will he carefuIly regarded by congress
and the people alike. The pnbhc debt of
the United States to the amount OF seven
hundred and twenty million dollars
bears interest at the rate Of SIN per cent,
and seven hundred and eight million dollars
at the rate of five per cent, and the only
WAY in which the country can be relieved 0f
the uayment Of high rates of interest Is by
advaniaoeouxlv funding the indebtedness.
Whether the debt is ultimately paid III gold
or silver com is of but little moment compar-
ed to the possible reduction of interest one:
third by refunding it at reduced rates II
the United States had the unqueStlonable


- l..
benefit from tha. process would be greatly
oyerbalanced by the injurious effect OF sneh
pavment if made or proposed against the
honest convictions Of the public creditors.


All the bonds that have been issued since
February 18th, 1873, when gold became 'he
ONLY unlimited legal tender metallic currency
of the country are justly payable III goa
com or In com OF equal value Durihs ,le
time of these issues the only doliar lh't
could he or Was received by the government
in exchange for bonds was the Golo doilat'
To expect the public creditors to take al re-


payment any dollar of less commercial Vaiue
would be regarded by them as repudiatioh
of the full obligation assumed Inc poiius
issued prior 10 1871 were issued Al 'iiiie
when the gold dollar was the only com IN
circulation or contemplated by elther 'iio
government or the holders OF the bonds as
the coin in which they were TO paid, 1t Is
far better to pay these bonds IN that com


than to seem to take advantage OF the uii-
foreseen fall of silver bullion to pay IN new


issue of silver coin that is made so much less
valuable. The power OF the United States
to coin money and tc regulate the 'aiue


thereof ought Eever to be exercised Tor 'ne
purpose cf enabling the government 10 pay


its Obligations in coin OF less value thai


that contemplated by the parties When M .he


bonds were Issued ANY attempt to pay 1he


,stionai indebtedness in coinage OF less