Year: 1877

] CHCS DIS VI Tic EiOSl u6CtsSdTS uuly


and will be carefully guarded by Con


gress and the people alike. The public
/ debt of the United States, to the amount
I of S729, ,000,0 600 bears interest at the rate
/ of six per cent; and Sos, 100000 at
| the rate of five per cent; and the only


way in which the country can berelieved
| from the payment of the 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. If the United States had the


unquestionable right to pay its bonds in
| in silver coin, the little benefit from


that process would be greatly overbai-
lanced by the injurious effect of such
payment, if made or proposed against


the honest convictions of. the public


credit.


All the bonds that have been issued


since February ~, 1873, when gold be-


came the only unlimited legal tender


metallic currency of the country, are


justly payable in gold coin or coin Of


equal value. During the time of these


issues the only dollar that could be, or


was received by the Government in ex-


change for bonds, was the gold dollar.


To require the public creditors to take
| in payment any dollar of less CONNER


cial value would be regarded by them


as repudiation of the full obligation


assumed. The bonds issued prior to


1873 we're issued at time when the gold


dollar was the only coin in circulation,


or contemplated by either the Govern


ment or holders of the bonds as the coin


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 of silver bullion, by pay


ing them in new issue of silver coin


that is so much less valuable.


The powero of the United States to coin


money, and to regulate the value thereof,
ought never to be exercised for the pur-


pose of enabling the Government to pay


its obligations il a coin Of less value


than that contemplated by the parties


when the bonds were issued. Any at


tempt to pay the National Indebtedness


in coinage of a less commercial value


than the money of the world would in


volve a violation of the public faith, and


work irreparable Injury to the public


credit. 1t was the great merit of the act


of March, 1869, 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 pledge of public


faith. The Government has derived


great benefit from it, in the progress


thus far made in refunding the public


debt, as low rates of interest and an ad-


herence 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 exceeding


$20,000,000 per anuum, and effect an


aggregate saving in the United States


of more than three hundred millions


$500, ,000,000) of dollars before the bonds


can be fully paid.


In adapting the new silver coinage to
the ordinary uses of currency, in the
everyday transactions of life, and pre-
serving the quality of legal-tender to be
assigned to it, consideration of the first
Importance should be so to adjust the


ratio between the silver and the gold
, coinage, which now constitutes our


specie currency, as to accomplish the


desired end of maintaining the circula-
ton of the two metallic currencies, and
keeping UP the volume of the two
| PlCCiOuo hlCtsilo do Jul IiltillISlC DlOICy
1t is mixed question for scientific


reasoning and historical experience to
; determine how far and by what methods
practicable equilibrium can be main
tained which will keep both metals in
circulation in their appropriate spheres
of common use. An absolute equality
of commercial value, free f.om disturb
ing fluctuations is hardly attainable, and
6 without it an unlimited legal-tender for
private transactions, assigned to both
metals, would tend to drive out of circu-
lation the dearest coinage, and disap-
point the principal object proposed by
the legislation in view.


y 1 apprehend, therefore, that the two
conditions of near approach to an
, equality of commercial value between
o the gold and silver coinage of the same
= denomination, and of limitation of
: amounts for which the silver coinage is
. to be legal tender, are essential to
. maintaining both in circulation.


y If these canditions can be successfully
= observed the issue from the mint of
:, silver dollars would afford material assis,
: tance to the community in the transition
to redeemable paper money, and would
facilitate the resumption of specie pay.
~ ments and its permanent establishment
y Without these conditions fear that only
), mischief and misfortune would follow
, = from coinage of silver dollars, with
II II the quality of unlimited legal tender
u Even in private transactions any expec
+ tation of temporary loss from an issue O.
70 silver coinage, to pass as legal tender
u . at a rate materially above its commercial
- value is, | am persuaded, delusion
= Nor can l think that there is any sub
u stantial distinction between an origina
u issue of silver dollars at nominal value
!, material above their commercial value
~ and the restoration of the silver dolla
~ at rate which once was, but has ceased
~ to be, its commercial value. Certainly
!n the issue of our gold coinage, reduced
u in weight materially below it's legal
l7 l1 tender value, would not be any the less
VI present debasement of the coinage b,
y i reason of its equaling or even exceeding
n ie in weight good coinage which at SOM
.. past time had been commercially equa
y to the legal-tender value assigned to tn
~ new issue.


ie In recommending that the regulation
~ OF any silver coinage which may b.
~ ~ authorized by Congress should observ
l9 1 these conditions of commercial valu
d. a. and limited legal-tender. 1 am governe,
" " by the feeling that every possible in
y crease should be given to the value o
u metallic money which can be kept il
x circulation, and thereby every possibl
~ ~ aid afforded to the people in the process
A. A. of resuming specie payments. 1t is be
70 70 cause of my conviction that disregar
d of these conditions would frustrate tn
good results which are desired from tn
Ut proposed coinage, and embarrass wit
d new elements of confusion and ur
eeIl certainty, the business of the country
~ ~ that | urge upon your attention thes
Ut considerations.


h1 SILVER AND THE PUBLIC DEBT.
60 l respectfully recommend to Congres
n n that, in any legislation providing for
u silver coinage, and imparting to it tn
~ quality of legal-tender, there be in
at pressed on the measure a firm provisio