Year: 1878

The following is the full text of the Presi-
dents message:


To the House of Representatives:


After very careful consideration of House
bill No. 1O93 entitled "An act to authorize the
coinage of the silver dollar, and to restore its
return it to the House of Representatives, in
which it originated, with my objections to it's
passage.


Holding the opinion which / expressed in
my annual message, that neither the interest
of the government nor the people OF the
United States would be promoted by dis
paraging silver as one of the two precious
metals which furnish the coinage Of the
world, and that legislation which looks to
| maintaining the volume OF intrinsic money to
as full q measure of both metals as their
relative commercial value will permit would
be neither unjust nor inexpedient, it has been
my earnest desire to concur with Congress in
the adoption Of such measures to increase the
silver coinage Of the country as would not i'm
pair the obligation 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 essential requirements
| shat feel it my duty to withhold from it my
approval. My present official duty as to that
bill permits only an attention to specific OBJ
| jections to its passage, which seems to ME so
important as to Justify me in asking from the
wisdom and duty Of Congress, that further
| consideration of the bill for which the CON
stitution has ia such eases provided. The
bill provides for the coinage Of silver dollars
of the weight of 4l2lLa grains each of standard
silver, to be q legal tender at their nominal
value for all debts and dues, public and pri-
| stipulated in the contract. 1t is well known
that the market value of that number of
grains of standard silver during the past
year has been from 80 to 90 cents, as compared
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 contracted when the law did not recog-
nize such coins as lawful money. The right
to pay duties on silver, or in certificates Of
silver deposits, will, when they are issued in
sufficient amount to circulate, put an end
to the receipt of the revenue in gold, and
thus compel the payment OF silver for both
the principal and interest of the public debt.
ST, ll3, ,4o3, 400 of the bonded debt now out
standing was issued prior to February, 1878,
when the silver dollar was unknown in
circulation in this country. and was only
Q convenient form Of silver bullion
for expectation. 1888, ,440,350 of the bonded
debt has been issued since February, 1878,
when gold alone was the coin for which the
bonds were sold, and gold alone was the coin
in which both parties to the contract under
stood that the bonds would be paid These
bonds entered into the markets Of the world.
They were paid for in gold when silver had
greatly deprecated, and when no one would
have bought them If it had been understood
that they would be paid in silver. The sum OF
1925, 600 900 of these bonds has been sold dur
ing my administration for gold coin, and the
United States received the benefit OF those
sales by a reduction OF the rate OF interest to
4 per cent.


During the progress of these sales doubt
was suggested as to the coin in which the
payment of these bonds would be made.
| The public announcement was thereupon au-
| thorfzed that it was not to be anticipated that
any further legislation of Congress or any
| action OF any department. OF the government
would sanction or tolerate the redemption OF
| the principal Of these bonds, or the payment
| of interest thereon, in coin of less value than
the coin authorized by law at the time of the
issue OF the bonds, being the coin exacted by
the government in exchange for the same.
garded as a grave breach Of the public faith
to undertake to pay these bonds, principal or
interest, in silver coin worth in the market
less than the coin received for them.


It is said that the silver dollar, made q le-
gal tender by this bill, will under it's opera
tions be equivalent in value to the gold dol
lar. Many supporters of the bill believe this,
and would not justify an attempt to pay debts,
either public or private, In coin Of inferior
value to the money of the world. The capital
defect of the bill is that it contains no pro-
vision protecting from it's operation pre-exist-
ing debts in case the coinage which it creates
shall continue to be OF less value than that
which was the sole legal tender when they





the purpose of taking advantage of the de-
probation OF silver in the payment Of debts,
to coin and make a legal tender silver dollar
of less commercial value than any dollar,
whether of gold or paper, which is now the
lawful money in this country, such measure,


it will hardly be questioned will, in the judg
ment of mankind, be an act OF bad faith.


AS to all debts heretofore contracted, the
silver dollar should be made O legal tender
only at its market value. The standard of
value should not be changed without the con-
sent of both parties to the contract. The ma
tional promises should be kept with unhinch-
ing fidelity. There is no power to compel q
nation to pay it's just debts Its credit de-
pends on its honor. The nation owes what it
has led or allowed its creditors to expect. I
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 It's unquestionable main
tenance Is the dictate as well of the
highest expedience as well as the most neces-
sary duty, and should ever be carefully guard
ed by the Executive, bys1ongress and BY the
people. It is my firm conviction that If the
it can be done only by the issue Of silver dol
lars Of full value, which will defraud no man.
A curreScy worth less than it purports to be
worth VIII in the end, defraud not only the
creditors, but all whS are engaged in legitl-
mate business, and none more surely than
those who are dependent on their daily labor
for their daily bread. Il. B. HAYES.


Executive Mansion, February %, 1873.
0 o


EUROPE AND THE MISSISSIPPI VAIL


LEY.


HOW England Expects to Get Her Corn and