Year: 1878




authorize the coinage of the silver dol
lar and to restore it to its legal tender
character, feel compelled to return il
to the House of Representatives. in
which it originated, with my objection
to its passage, holding the opinion
which expressed in my annual mes
sage, that neither the interests of the
Government nor the people of the
United States would be promoted by
disparaging silver as one of the two
precious metals which furnish that
coinage of the world, and that lepisla-
tion which looks to contracting the vol
ume of intrinsic money to as full n
measure of both metals as their relative
commercial value will permit would be
neither unjust nor inexpedient. To
undertake to pay these bonds, principal
or interest, in silver coin worth in the
market less the coin received for them
it is said the silver. dollar made a legal
tender by this bill, will under its opera.
tions be equivalent in full to the gold
dollar. Many supporters of the bill
believe this and that it is lust an at
tempt to pay debts, either public or
private, in coin inferior in value to the
money of the world. The capital de-
feet of the measure is that it contains
no provisions protecting from its oper-
ations pre-existing debts. In case the
coinage which it creates should con-
tinue to be of less value than that
which was the sole legal tender when
they were contracted, if it is now pro-
posed for the purpose of taking advan-
tage of the depreciation Of silver in
payment of debts, to coin and make a
legal tender a silver dollar of less COM
mercial value than dollar, whether of
gold or paper, which is now lawful
money of this country, such a measure,
it will be hardly questioned, will, in the
judgment of mankind be an act of bad
faith as to all debts heretofore con-
tracted. The silver dollar should be
made legal tender only at its market
value; the standard of value should not
be changed without the consent of both
parties to the contract; national prom
ises should be kept with unfiinching
fidelity; there is no power to compel a
nation to pay its just debts, its credit
depends on its honor. 1t has bean my
earnest desire to concur with Congress
in the adoption of such measures to
increase the silver coinage of the coun-
try as would not impair the obliga-
tion of contracts, either public or
private, or injuriously affect the public
credit. 1t is only on the conviction
that this bill does not meet these essen
tial requirements that 1 feel it my
duty to withhold from it my approval.
Ny present official duty, as to taat bill,
permits only an attention to the specific
objects of the bill, which seem to me
the Constitution has in such way pro-
vided. The bill provides for the COIN
age of silver dollars of weight of 412t
grains each, of standard silver, to be a
legal tender to their nominal value, for
all debts and duties, public and private,
except where otherwise expressly stipu-
lated in the contract. 1t is well known
that the market value of that number
of grains of standard silver during the
past year bas been from ninety
to ninety-two cents as compared
with the standard gold dollar. Thus
the silver dollar authorized by this bill
is worth from eight to ten per cent. less
than it purports to be worth, and is
made legal tender for debts contract
ed when the law did not recognize such
coins as lawful money. Issued in a
sufficient amount to circulate, 1t will
put an end to the receipt of revenue
in gold, and thus compel the payment
of silver for both the principal and in
terest Of the public debt. Eleven mil
lions three hundred and forty-nine
thousand three hundred and forty-seyer
dollars Of the bonded debt now out
standing was contracted prior to Feb.
ruary, 1875, when the silver dollar was
unknown in the circulation Of thi.
country, and with only convenient
| form of silver bullion for expectation