Year: 1877

VI okto va SaSA bSAtoAotfOa fhos w
sire to recommend to your attention.
In any legislation providing for q
silver coinage, regulating its value
and imparting to it the quality of le-
gal tender, it seems to me of great
Importance that Congress should not
lose sight of its action as operating
in a two-fold capacity and in two dis
tinct directions. IL the United States
Government were free from public
debt, its legislative dealing with the
question of silver coinage would be
purely sovereign and governmental,
under no restraints but those OF con.
stitutional power and the public
good, as affected by the proposed
legislation but in the actual circum.
stances Of the nation, with q vast
public debt distributed very widely
among our own citizens, and held in
great amounts also abroad, the ma
ture of q silver coinage measure, as
affecting this relation OF the Govern
ment to the holders of the public


debt, becomes an element in any
proposed legislation OF the highest
concern; the obligation Of the public
faith transcends all questions Of profit
or public advantage, otherwise its
unquestionable maintenance is the
dictate as well Of the highest expe-
diency, as of the most necessary du-
ty, and will ever be carefully guarded
by Congress and the people alike.
The public debt of the United States
bears interests at the rate Of six per
cent, and $10s,000,000 at the rate
Of five per cent, and the only way in


which the country can be relieved
from the payment OF these high rates
Of interest is by advantageously re-
funding the Indebtedness. Whether
the debt is ultimately paid in gold or
silver coin is of but little moment
compared with the possible reduction
ofinterest one third by refunding it
at such reduced rate. If the United
States had the unquestioned right to
pay its bonds in silver coin, the little
benefit from that process would be
greatly overbalanced by the injurious
effect of such payment, if made or
proposed against the honest convic-
tions of the public creditors.


ALI the bonds that have been issu-
ed since February, 1873, when the
only unlimited legal.tender metallic
currency Of the country are Justly
payable in notes, coin, or in coin Of
equal value during the time of the is.
sues, the only dollar that could be or
was received by the Government in
exchange for bonds was the gold dol
lar. TO require the public creditor
to take in repayment any dollar OF
less commercial value would be re-
garded by them as a repudiation Of
the full obligation assumed. The
bonds issued prior to 1873 we're issu-
ed at a time when the gold dollar
was the only coin in circulation or
contemplated by either the Govern
ment or the holders Of the bonds as
the coin in which they were to be
paid. 1t is far better to pay these
bonds in that coin than to seem to
take advantage of the unforeseen fall
in silver bullion to pay in q new is
sue of silver coin, thus made so much
less valuable. The power of the
United States to coin money to regu-
late tie value thereof ought never to
be exercised for the purpose of enab.
ling the Government to pay its obli.
cations in coin Of less value than


tina: contemplated by the parties
when the bonds we're issued. Any
attempt to pay the national indebted
ness in coinage OF less commercial
value than the money Of the world,
would involve . violati on of the pub
lie faith, and work irrep arabic injury
to the public credit. It was the great
merit Of the Act Of March, 1869 in
strengthening the public credit. that
it removed all doubt to the purpose
of the United States to pay ther bon
ded debt in coin. That act was &C.
cepted as pledge Of public faith.
The Government has derived great
benefit from it in the progress thus
far made in refunding the public debt
at low rates of interest. An adher-
ence to the wise and just policy Of an
exact observance of the public faith
will enable the Government rapidly
to reduce the burden of interest on
the national debt to an amount far ex-
ceeding $50, 900, 900 per annum, and
effect an aggregate saving to the
United States of more than $780,
600, 900 before the bonds can be fully
paid. In adapting the new silver
coinage to the ordinary uses of cur
rency in the every day transactions
of life, and prescribing the quality Of
legal tender to be assigned to it, q
consideration of the first Importance
should be SO to adjust the ratio be-
tween the silver and the gold coinage,
which now constitutes our specie
currency, as to accomplish the desir-
ed end Of maintaining the circulation
Of the two metallic currencles and
keeping up the volume Of the two
precious metals as our intrinsic mon
ey. 1t is q mixed question for scien-
tific reasoning and historical expe-
rience to determine how far and by
what methods q practical equilibrium
can be maintained which will keep
both metals in circulation in their ap.
propriate spheres of common use. An
absolute equality Of commercial val
ue, free from disturbing fluctuations,
is hardly attainable, and without it
an unlimited legal tender for private
transactions assigned to both metals
would irresistably tend to drive out
of circulation the dearer coinage and
disappoint the principal object pro.
posed by the legislation in view. l
apprehend therefore, that the two
conditions of near approach to
equality OF commercial value between
the gold and silver coinage Of the
same denomination, and OF q hmita.
tion of the amounts for which the
silver cionags is to be q legal tender,
are essential to maintaining both in
circulation, II these conditions can
be successfully observed, the Issue
from the mint OF silver dollars would
afford material assistance To the CON.