Year: 1877

1t was the great merit of the act OF
March. 1869. In strengthening the public
credit. that il removed all doubt as to the
purpose Of the United States to pay their
bonded debt in coin. That act was accept
ed as a pledge of the public faith. The
Government has derived great benefit from
il in the progress thus far made Ia refund.
ing the public debt at low rates OF interest.
An adherence 10 the wise and just policy
OF an exact observance OF the public faith,
will enable the Government rapidly 10 re-
duce the buiden OF interest on the ma
tional debt to an amount not exceeding
twenty million dollars per sunum. and ef-
feet AN aggregate saving to the United
States of more than three hundred million
dollar. before the bonds can be fully paid.
IL adapting the new silver coinage I" the
ordinary uses OF currency in the every day
transactions of life, and prescribing the
quality of legal tender TO be assigned To- II,
u consideration OF the first importance
should be 80 TO adjust the ratio between
the silver and the gold coinage. which now
constitutes our specie currency. a. Ia sc-
compli>h the desired end OF maintaining,
The circulation OF the two metallic currcn-
oies and keeping up the volume OF the two
precious metals, a our intrinsic money. il
= a mixed question for scientific reasoning





far and by what methods. 4 practicable
equilibrium 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 hardly at
tAinsoie and without II at unlimited legal
tender for private transactions assigned to
both metals would irresI>tihly tend to drive
out OF circulation the dearrr coinage and
dissppoint The principal object proposed by
the legislation In view


! SppTchend, therefore. that the two
conditions OF near approach to equality
or commercial value between the gold and
silver coinage OF the same denomination
aud OF Limitation OF the amounts for
which the silver coinage l. 10 be the legal
tender, are essential to maintaining both
In circulation. II these conditions can be
successfully observed the issue from the
mint OF silver dollars would Aford material
assistance 10 the community In the trsn.i-
tiOn 10 rcdeemabic paper money and woul1
iaciliisi" the resumption OF specie payment
and IT. permanent establishment. without
tacse conditions | tear that only mischief
and misfortune would flow from a coinage
OF silver dollars wieh the Qnaliiy Of uuim-
ted legal tender even In private transAc-
Tons, any expectation Of temporary ease
from au issue of silver coinage 10 pass As
legal tender at a rate materially above it.
commercial value j. am per-uad-d) a
deiuslon. Nor can mink that there is
any substantial distinction between an
original issue OF silver dollars at a nominal
value materially above their commercial
value and the res Grafton OF the silver dol
lar al rate which once Wa. but has
ceased 10 De IL commercial value. Ger
tainly the issue OF cur gold coinage reduced
IN weight materially below it, legal tender
value. would not be any the less a present
debascment OF the coinage by reason Of
It's cquailng or even exceeding In weight a
good coinage. which 81 some past time had
beeL commercially equal 10 the le gal tender
value assigned 10 the new issue In rec
ommeuding that the valuation OF any silver
coinage which may be authorized by Con
gress should observe these conditions OF
commercial value and limited legAl-tcndcr
| sm governed by the feeling that every
possible Increase should be given to u .
volume Of metallic money which can b.
kept IN circulation, and thereby every
possible aid Afforded TO the people IN the
process OF resuming specie payments. Il
Is because of my conviction that disrc-
gard OF these conditions would Illustrate
the good results which are desired from
he proposed coinage, embarrass with new
clements OF confusion aud uncertainty the
business OF the country. that urge upon
your attention these considerations.


/ respectfully recommend TO Congress
that ia any legislation providing for sill
YER coinage and imparting il 10 the quality
OF legal tender. there be Impressed on the
measure nrin provision exempting the
public debt, heretofore issued and now
outstanding, from payment either of prin-
~
than the present gold coinage Of the coun-
Try.