Year: 1877

to my most earnest conviction that any
waving in purpose or unsteadiness il
methods, so far from avoiding or reducing
| the Inconvenience inseparable from the
transition from an irredeemable to re
deemable paper currency, would only tend
to increased and prolonged disturbance in
values and, unless retrieved, must end In
serious disorder, dishonor and disaster in
| the financial affairs of the Government and


of the people. The mischiefs which l ap
pretended and urgently deprecated are


confined to no class of the people, indeed
but seem to me most certainly to threaten
| the industrious masses, whether their occu
pations are skilled or common labor. Tc
them, it seems to me, it is of prime import
| ance that their labor should be compensated
in money which is itself fixed in exchange
able value by being irrevocably measured
by the labor necessary to its production
This permanent quality Of the money of the
people is sought for, and can only be
gained by the resumption of specie pay.
ments. The rich, the speculative, the op.
Grating, the money-dealing classes may not
always feel the mischiefs of, or may find
casual profits in, variable currency, but
the misfortunes of such currency to those
who are paid salaries or wages are newt
able and remediless.


Closely connected with this general sub
iect of the resumption of specie payments is
one of subordinate, but still of grave i'm
portanee. mean the readjustment of our
coinage system by the removal of the silver
dollar as an element in our specie currency,
endowed by legislation with the quality of
legal tender to greater or less extent. As
there is no doubt of the power of Congress
under the Constitution to coin money and
regulate the value thereof, and as this power
covers tbe whole range of authority ap-
plicable to the metal, the rated value and
the legal tender quality which shall be
adopted for the coinage, the considerations
which should induce or discourage par
ticular measure connected with the coinage
belong clearly to the province of legislative
discretion and of public expediency. With
out intruding upon the province of legisla-
tion in the least, have yet thought the SUBJ
ject of such critical importance in the actual
condition of our affairs, as to present an
occasion for the exercise of the duty imposed
by the Constitution on the President, of
recommending to the consideration of Con-
gress such measures as he shall Judge nee
essary and expedient." Holding the opinion
as 1 do, that neither the interests of the
Government nor of the people of the United
States would be promoted by disparaging
silver as one of the two precious metals
which furnish the intrinsic money of the
world, and that legislation which shall look
to maintaining the volume of that intrinsic
money to as full measure of both metals
as their relative commercial values will per-
NIT would be neither unjust nor expedient,
must ask your indulgence to brief and
indefinite statement Of certain essential
features in any such legislative measures
which / feel it my duty to recommend.


l do not propose to enter the debate, rep
Al Il. H. H. ,oI, o1l
tants in Congress and before the people and
in the press, as to the extent to which the
legislation of any one nation can control
this question, even within its own borders,
against the unwritten laws of trade or the
positive laws of other Governments. The
wisdom of Congress in shaping any particu-
lar law that may be presented for my ap-
proval, may wholly supersede the neces-
sity of my entering into these considera-
tions, and willingly avoid either vague or
intricate inquiries. 1t is only certain, plain,
and practical traits of such legislation 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 Importance that Congress should
not lose sight of its action as operating in a
two-fold capacity, and in two distinct di-
rections. II the United States Government
were free from public debt, its legislative
dealing with the question OF silver coinage
would be purely sovereign and govern
mental, under no restraints but those of con-
stitutional power and the public good as
affected by the proposed legislation, but in
the actual circumstances of the nation, with
a vast public debt distributed very widely
among our own citizens, and held in great
amounts also abroad, the nature OF the silver
coinage measure as affecting this relation of
the Government to the holders of the pub
lie debt, becomes an element in any pro-
posed legislation of the highest concern.
The obligation of the public faith transcends
all questions of profit or public advantage
otherwise, and its unquestionable mainten-
ance will ever be carefully guarded by Con-
gress and people alike. 1t cannot even add
to our peoples sense of this obligation to
know, as they do, that such maintenance is
the dictate as well of the highest expediency
as of the most necessary duty, and will be
carefully guarded by Congress and the peo.
pie alike. The public debt of the United
States, to the amount OF S729, ,OO0, 600 bears
interest at the rate of six per cent; and
s70S, ,O09, 900 at the rate of five per cent. and
the only way in which the country can be re-
lieved from the payment Of these high rates
Of interest is by advantageously refunding
the indebtedness. Whether the debt is
ultimately paid in gold or in silver coin is
of but little moment compared with the
possible reduction of interest one-third, by
refunding it at such reduced rates. II
the United States had the unquestionable
right to pay its bonds in silver coin, the
little benefit from that process would be
greatly oyerbalanced by the injurious effect
Of such payment, if made or proposed
against the honest convictions of the public
credit


All the bonds that haye been issued since
February II, 1878, when gold became the
only unlimited legal tender metallic currenc!
of the country, are Justly payable in golt
coin, or in coin of an equal value. During
the time of these issues the only dollar tina
could be, or was, received by the Govern
ment in exchange for bonds, was the golt
dollar. To require the public creditors t.
take in repayment any dollar of less com
mercial value would be regarded by then
as a Reputation of the full obligation as
sumed. The bonds issued prior to 1S7
were issued at the time when the gold dol
lar was the only coin in circulation, or con
tenplated by either the Government or tn
holders of the bonds as the coin which the.


were to be paid. 1t is far better to pay thes


bonds in that coin than to take adyantag
| of the unforeseen fall Of silver bullion, b.
l
| that is made SO much less valuable. Tn
| power of the United States to coin money
| and to regulate the value thereof, ough
never to be exercised for the purpose @


enabling the Government to pay its obligs
| tions in coin of less value than that cor
/ templated by the parties when the bond


were issued. Any attempt to pay tn
/ National Indebtedness in coin of les


commercial value than the money Of tn
world would involve violation of the pull
lie faith, and work irreparable injury to tn


public-credit. 1t was the great merit {


the act of March 1869, in strengthening tn


public credit, that it removed all doubt a


to the purpose of the United States to pa


their bonded debt in coin. That act wa


accepted as pledge Of public faith. Th


Government has derived great benefit froI
j it, in the progress thus far made in refunt


ing the public debt, as low rates of intere.


and an adherence to the wise and just polio


of an exact observance of the public fait


will enable the Government rapidly to r
duce the burden of the interest on th


National debt to an amount exceeding $40


100000 per aunum, and effect an aggregat


saving to the United States of more tina
three hundred millions ($300 000, ,000)
dollars before the bonds can be fully paid.
In adapting the new silver coinage to IL
ordinary uses of currency, in the eyery-ds
, transactions of life, and preserving Il
quality of legal-tender to be assigned to
, consideration of the first importan,
should be so to adinst the ratio between Il
silver and the gold coinage, which now co