Year: 1878

SAO14dtS u lIiS bOilNlCu USDI HOW Oul
standing was issued prior to February
1876, when the silver dollar was un
known in the circulation Of this coun
try, and with only convenient form o
silver bullion for expectation. The
sum of S5S3, ,440, $50 of the bonded deb
has been issued since February, 1873
when gold alone was the coin in which
both parties to the contract understood
the bonds would be paid. These bond;
flowed in the markets of the world; they
were paid for in gold, when silver hac
greatly deprecated, and when no one
would have bought them if it had beer
understood that they would be paid IL
silver. The sum of S225,000,000 o.
those bonds has been sold during my
administration, for gold coin, and the
United States received the benefit ot
those sales by a reduction of the rate
/ of interest to four per cent. During
| the progress of these sales as
doubt was suggested to the coin
/ in which the payment of tn ese bonds
would be made, the public announce
ment was thereupon authorized that ii
was not to be anticipated that any fur
ther legislation of congress, or any ac-
ton of any department of the govern
ment would sanction or tolerate the re-
demption of the principal ofthese bonds
or the payment of interest thereon in
coin, other than that exacted by the
In view of that fact twill be justly re-
garded as a grave breach Of the public
faith to undertake to pay these bonds,
principal or interestin silver coin worth
in the marked less than the coin re-
ceived for them. 1t is said the silver
dollar made legal tender by this bill
will, under its operations be equivalent
in full to gold dollar Many support
ers of the bill believe this, and that it is
just an attempt to pay debts either pub
lie or private, in coin, inferior IN value
to the money of the world. The capital
defect of the measure is that it contains
no provision protecting from
its operation pre-existing debts in case
the coinage which it creates shall con-
tinue to be Of less value than that which
was the sole legal tender where they
were contracted. If 1t is now proposed
for the purpose of taking advantage of
the depreciation of silver in payment of
debts to coin and make a legal tender a
silver dollar of less commercial value
than dollar, whether of gold or paper,
which is now lawful money of this coun-
try, such a measure it can be hardly
questioned, will in the judgment of
mankind, be an act of bad faith as to
all debts heretofore contracted. The
silver dollar should be made legal ten
der only to its market value The stand
ard of value should not be changed
without the consent of both parties to
the contract. National promises should
be kept with unfinching fidelity.
There is no power to compel a
nation to pay its debt Its
credit depends upon its honor.
[ cannot approve bill which, in my
judgment, authorizes the violation of
sacred obligations. The obligation of
public faith transcends all questions of
profit or public advantage. Its unques-
tionable maintenance is dictated as
well by highest experience as by the
most necessary duty, and should ever
be carefully guarded by the executive,
by congress, and by the people, 1t is
my firm conviction that if the country
is to be benefited by silver coinage, it
can be done only by the issue of silver
dollars of full value, which will defraud
no man, and currency worth less than
it purports to be will, in the end, defraud
not only creditors, but all who are en-
gagged in legitimate business, and no
more assuredly than those who are de-
pendent on their daily labor for their
daily bread.


(Signed) RUTHERFORD B. HAYES,


President of the United States.


The house proceeded at once to a
vote, and the bill passed over the veto
by ayes 1876, noes 73.