Year: 1877

question of silver coinage would be
purely sovereign and governmental
under no restraint but those of consti-
tutional power and the public good, as
affected by the proposed legislation.
But in the actual circumstances of the
nation,


WITH 4 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 rela-
ton of the government to the holders
of the public debt, becomes in any pro-
posed legislation of the highest con-
Germ. The obligation of the public faith
transcends all questions of profit or
public advantage otherwise its unques-
tionable maintainence is the dictate as
well of the highest expediency, as of
the most necessary duty, and will be
carefully guarded by congress and the
people alike. The public debt of the
! United States to the amount of 1929,
! 100000 bears interest at the rate of
per cent, and $70S,000,000 at the
rate of 5 per cent. +; and the only way
in which the country can be relieved
from the payment of the high rates of
interest is by advantageously refunding
the Indebtedness, whether the debt is
ultimately paid in gold or silver coin;
is Of but little moment compared
with the possible reduction of interest,
one-third by refunding it at such a re-
duced rate. If the United States had
the unouestionable 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 convictions of the
public creditors. All the bonds that
have been issued since July II, 1873,
when gold became the only unlimited
legal tender, metallic currency of the
country, are justly payable in gold coin
or in coin of equal value. During the
time Of these issues, the only dollar
that could be or was received by the
government in exchange for bonds was
the gold dollar. To require the public
creditors to take any dollar of less com
mercial value would be regarded by
them as q reputation of the full obliga-
ton assumed. The bonds issued prior
to 1871, were issued at a time when the
gold dollar was the only coin in circu-
lation or contemplated by either the
government 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 of sill
yer bullion to pay in a new issue OF
silver coin that is made so much less
valuable. The power of the United
States to coin money and to regulate
the value thereof ought never to be
abling the government to pay Its
obligations in coin of less
value than that contemplated by the
parties when the bonds were issued
Any attempt to pay the national in
debtedness in coinage of less CONNER
cial value than the


MONEY OF THE WORLD,


would involve q 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 il
removed alLdoubt 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 govern
ment has derived great benefit from it.
In the progress thus far made in re-
funding the public debt, at low rates o
interest, and adherence to the wise and
lust policy of an exact observance o.
the public faith will enable the govern
ment rapidly to


REDUCE THE BURDEN OF INTEREST


Of the national debt to an amount eX-
ceeding twenty million dollars per an
mum, and effect an aggregate saving tC
the United States of more than three
hundred million dollars before the
bonds can be fully paid. In adopting
the new silver coinage. to the ordinary
uses Of currency in the every day
quality of legal tender to be assigned tC
it. consideration of the first import
ance should be to adjust the ratio be
tween the silver and the gold coinage
which now constitutes our specie cur
rency, as to accomplish the desired enc
of maintaining the circulation of the
two metallic currencies, and keeping uI
the volume Of the two precious metals
as our intrinsic money. 1t is a vexeC
question for scientific reasoning anC
historical experience to determine
how far and by what method:
a practicable equilibrium can be main
tanned, which will keep both metals IL
circulation in their appropriate sphere:
of common use, as absolute equality
of commercial value, free from disturb
ing fluctuations is hardly attainable
and without it, an unlimited legal tender
e., 70 o+io oD1 70 Ir+l
metals would tend to drive out of circu
lation the dearest coinage and disap
point the principal object proposed by
the legislation in view. [ apprehend
therefore, that the two, conditions of {
} near approach to equality of CONNER
!, cial values, between the gold and silve1
coinage of the same denomination anC
!, of a limitation of the amounts fol
: which the silver coinage is to be lega
tender, essential to maintaining both il
! circulation. If these conditions can bt
successfully observed, the issue from
: the mint of silver dollars would AFFORD
material assistance to the community
in the transition to redeemable paper
money, and would facilitate the resump
ton of specie payment and its per
|. manent establishment, without these
conditions, fear that only mis-
chief and misfortune would flow
from coinage of silver dollars with
the quality of unlimited legal tender
even in private transactions. Any ex
pectation of temporary ease from al
issue Of silver coinage to pass as a lega
tender at q rate materially above it,
commercial value, is, I am persuaded
delusion; nor can | think that there i