Year: 1877

plOPOoCu ICE lSldtlOll vi INC HlBUCSl CUUS
cern, The obligation Of the public faith
transcends all questions of profit or pub~
lie advantage. Otherwise its unquestionS
able maintenance is the dictate of the
highest expediency as well of the most
necessary duty and will be ever carefully
guarded BY Congress and the people
alike.


INTEREST ON THE PUBLIC DEBT.


The public debt Of the United States,
to the amount of $7Io, 1000 900, bears in
terest at the rate of six per cent, and
$7o8 900 oooo at the rate offive per cent,
and the only way in which the country
can be relieved from the payment of


these high rates of interest is by advan.
tageously refunding the Indebtedness
Whether the debt is ultimately paid in
gold or silver coin is of little moment
compared with the possible reduction of
interest to one>third by refunding it at
such reduced rates If the United States
had the urquestioned ripht to pay its
bonds in silver coin the little benefit from
that process would be greatly overbal-
anced by the injurious effect of such pays
ment, if made or proposed against the
honest conviction Of the public creditors.
All the bonds that have been issued since
February, 1873, when the only unlimited
legal tender was in the metallic currency
of the ecountry ARE justly payable in notes,
coin or in coin of equal value. During
the time of these issues, the only dollar
that could be, or was received by the Gov.
ernment, in exchange for bonds, was the
gold dollar, To require the public cred.
itor to take in repayment any dollar of
less commercial value, would be regard
ed by them as reputation of the full
obligation assumed. The bonds issued
prior to 1873 were issued at a time when
the gold dollar was the only coin in Cir~
culation or contemp ated by either the
Government or the holders of the bonds
as the coin in which they were to be paid.
tbs far better to pay these bonds in that
coin, than to seem to take advantage ofthe
unforeseen fallin silver bullion to pay in
new issue of silver coin thus made so
much less valuable. The power of the
United States to coin money, to regulate
the value thereof, ought never to be exe
ercised for the purpose of enabling the
Government to pay its obligations in
coin ofless value than that contemplated
by the parties when the bonds we're ise
sued. Any attempt to pay the national
Indebtedness in coinage of less CONS
mercial value than the money of the
world would involve a violation of the
public faith and work irreparable injury
to the public credit. 1t was the great
merit of the act of March, 1860, in
strengthening the public credit, that it
removed all doubt as to the purpose Of
the United States to pay their bonded
debt in coin. That act was accepted as
a pledge of public tath.


A Reduction of the Interest Rate.


The Government has derived great
benefit from it in the progress thus far
made in refunding the public debt at
low rate of interest, An adherence to
to the wise and just policy of an exact
observance of the public faith will ena'
BILE the Government rapidly to reduce
the burden of interest on the national
debt to an amount exceeding 100000
per annum, and effect an aggregate ga
wing to the United States of more than
100000 600 before the bonds can be fully
paid. In adopting the new silver coin.
age to the ordinary uses of currency in
the every day transactions of life, and
prescribing the quality of legal tender
to be assigned to it, consideration of
the first importance should be to so ad-
Just the ratio between the silver and gold
coinage which now constitutes our spe-
Gle currency, as to accomplish the desir-
ed end of maintaining the circulation of
the two metallic Currencies and keeping
up the volume of the two precious met
ais as our intrinsic money. 1t is mixed
question for scientific reasoning and his
toriCal experience to determine how far
and by what methods practical equili
brium can be maintained which will
keep both metals in circulation in their
appropriate spheres of common use. An
absolute equality of commercial value,
free from disturbing fluctuations, is hard
ly attainable, and without it an unlimi
ted legal tender for private transactions
assigned to both metals would irresista
bly, tend to drive out of circulation the
dearer coinage, and disappoint the prin-
cipal object proposed by the legislation
in view.


l apprehend, therefore, that the two
conditions of a near approach to equality
of CONNER ial value between the gold
and silver coinage of the same denomin-
ations and of Limitation of the amount
for which the silver coinage is to be a
legal tender, are essential to maintaining
both in circulation. If these conditions
can be successfully observed, the issue
from the mint of silver dollars would af-
ford material assistance to the commu
nifty in the transaction to redeemable
paper money, and would facilitate the
resumption of specie payment and its
permanent establishment. Without these |
conditions l fear that only


Mischief and Misfortune
would flow from coinage of silver dol |
lars with'the quality of unlimited legal
tender. Even in private transactions, |
any expectation of temporary ease from |
an issue of silver coinage, to pass as a le-
gal tender at rate materially above its
commercial value, is, | am persuaded,
deluson, nor can | think there is any
substantial distinction between an orig
ina issue of silver dollars, at a nominal
value materially above their commercial
value, and the restoration of the silver
dollar at a rate which once was, but has
ceased to be, its commercial value. Ger
tainly the issue of our gold coinage redu.
eed in weight materially below it's legal
tender value, would not be the less a
present debasement of the coinage by
reason of its exceeding or equaling in
weight a gold coinage which, at some
past time, had been commercially equal
to the legal tender value assigned to the
new issues. In recommending that the
regulation of any silver coinage which
may be authorized by Congress should
observe these conditions of commercial
value, and limited legal tender, am
yoverned nv the fpelinp that a harelv