Year: 1878

The SILVER BILL!


WASHINGTON, Feb. 28.-Representa-
tives; After very careful consideration
OF the House bill 1893 entitled an act to
authorize the coinage of the silver dollar
and to restore its legal tender character,
L feel compelled to return 1t to the house
10 which it originated with my objection to
its passage. Holding the opinion which ex-
pressed in my annual message, that neither
the interests of the government nor the
people of the U. s, would be promoted by
dlsparaglng silver as one of the precious
metals which furnish the coinage of the
world, and that the legislation which looks
to contracting the volume of
intrinsic money to as full
measure of both metals as their
relative commercial value will permit
would be neither just nor expe
dent, 1t has been my earnest desire to
concur with Congress 10 the adoption of
such measures to increase the silver coin
age of the country as would not impair
the obligations of contracts. either public
or private, or injuriously affect public
credit. 1t is only on conviction that this
bill does not meet these essential require
ments that l feel it my duty to withhold
from it my approval, My present official
duty as to that bill prevents onIy an attenl
ton to the specific objects of the bill,
which seem to me the constitution
has in such way provided.
The bill provides for the coinage of silver
dollars of the weight of 4l22 grains each,
of standard silver, to be legal tender to
their nominal value for all debts and duties.
public and private, except where aothers
were expressly stipulated ID the contract,
1t is we'll known that the market value of
that number of grains standard silver
during the past year has been from 90 to
g. 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 legal tender for debts contracted
when the law did not recognize such coins
as lawful money, issued in sufficient
amounts to circulate to put an
end to receipts to the revenue
| in gold, and thus compel payment of
silver for both principal and interest
of public debt. The 1,l43, ,493, 400 dollars
of bonded debt now outstanding was issued
prior to Feb. rs when the silver dollar was
| the circulation of this country, and with
only the convenient form of silver bullion
for expectation. $5S3.44O, $50 OF the
bond lett has been issued since February
1873 when gold alone was the coin for


which the bondsmen sold and gold alone


was the coin in which both parties to the
contract understood that the bonds would
be paid. Those bonds flowed 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
If 1t had been understood they would be
paid in silver. The sum of 225, ZOO, 900 of


those bonds has been sold during my aG-


mipistration, for gold ccin; the


United States has received


the benefit of those sales bv


a reduction of the rate of interest to per


cent During the progress of those sales
doubt was suggested as 10 the coin in
which payment of those bonds would be
made. the public announcement was there


upon authorized that it was not to be


anticipated that any further legislation Of
congress, or any action OF any department
; of the government, would sanction or
tolerate redemption of the principal OF
these bonds or the payment of interest


thereon, in coin other than that exacted


by the government in exchange for the
|
regarded as grave breach of public faith
e to undertake to pay these bonds. principal
o or interest, iu silver coin worth in market
less than the coin received for them. Il
said the silver dollar made legal tender
by this bill will under its operations be
e equivalent to gold dallar Many sup
= porters of the bill believe this, and it i:
+ just an attempt to pay debts either public


or private in coin of inferior value to the
money of the world. The capital detect:
u of the measure is that it contains no pro
vision protecting from its operation pre-
c existing debts in case the coinage which i


creates shall continue to be Of less value
- than that which was sole legal tender whel
, thew were contracted. II it is now pro


posed for the purpose Of taking advantag
}. of the depreciation of silver in payment o
debts to coin and make legal tender a sill
:. yer dollar of less commercial value than {;


dollar, whether Of gold or paper, which j


now the lawful money of this country, ,sucl


measure it will be hardly questioDe'
70 will, in Judgment of mankind, he an &C
c, of bad faith as TO all Lebts heretofore con
e; tracted, The silver dollar should De mad
ID a legal tender only at lis market value an
3, the standard OF value should not b
D. changed without the consent of both pal
'' ties to the contract, National promise
- should be kept with unfinching fidelity; a
there is no power to compel nation to pa


its great debts, its credit depends on il


honor.


A nation owing what it has led its cred
tors to expect, cannot approve bi
which, in my judgment, authorizes th
violation of sacred obligations. Th
obligation transcends all questions of prof


or public advantage; its unquestiopab


mantaineuce is she dictate as we'll of th


highest experience as of the most necess
- ary duty, and should ever /
70. carefully guarded by the executiy
.at by congress, and by the peop
~ It is my firm conviction that if the countr
he is to be benefited by silver coinage it ca
,se be done only by the issue of silver dola


of full value, which will defraud DO maj
= and currency worth less than it purpor
= to be will In the east defraud not on
x creditors but ali who are engaged in iegit
- mate business, and no more assured


than those who are dependent on the


daily labor for bread.


. (Signed) RUTHERFORD g. HAYES.


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