Year: 1877

no class of the people indeed, but seem to me

 most certainly to threaten the industrious mas

 ses, whether their occupations are of skilled or

 common labor To them, it seems to me, 1t

 is of prime importance that their labor should

 be compensated in money which is in itself liked in exehangeable value by being irrevoca-

 ply measured by the labor necessary pro-

 duction. This permanent quality of the money of the people is sought for, and cans only be

 gained by the resumption of specie payments.

 The rich, the speculative, the operating, the

 money dealing classes may not always feel the

 nischiefs of, or may find casual profits in vari

 able currency, but the misfortunes. of such

 currency to those who are paid salaries or wa

 ges are inevitable and reinediless.

 SILVER.

 Closely connected with this general subject

 of the resumption of specie payments, is one

 of subordinate, but still of grave importance l mean the readjustment of our coinage sys- tenn by the renewal of the silver dollar as an element of our specie currency, endowed by

 legislation with the'q quality of legal tender to greater or less extent. As there is no doubt Of | the power of congress, under the constitution, to coin money and dregulate the value thereof. and as this power covers the whole range ot authority applicable to the metals, the rated

 value and the legal tender quality which shall

 be adopted for the coinage, the considerations which should induce or discourage particular measure connected with the coinage, belong

 clearly to the province of legislative discretion and of public expediency. Without intruding

 upon your province of legislation in the least, have yeG thought the subject of such critical | importance in the actual condition of our af-

 fairs as to present an occasion for the exercise of the duty imposed by the constitution on the l president of recommending to the considera- 1 tion of congress ''such measures as he shall judge necessary and expedient." Holding the | opinion, as do, that neither the interests of l the government nor of the people of the United States would be promoted by disparaging silver. | as one of the two precious metals which fur nish the coinage of the world, and that legisla- | tion which looks to maintaining the volume of | intrinsic money to as full measure of both metals as their relative commercial values Will permit would be neither unjust nor lnexpedi- I ent, must ask your indulgence to brief and | definite statement of certain essential features of any such legislative measures which feel l it my duty to recommend. l do not propose 1 to enter the debate represented on both sides ! by such able disputants in congress and before ] the people and in the press as to the extent to | which the legislation of any one nation can control this question, even within it's own bor- 1 ders, as against unwritten laws of trade or the | positive laws of other governments. The Wls- l dom of congress i'll shaping any particular law | that may be presented for my approval may l wholly supersede the necessity of my entering into these considerations, and 1 willingly avoid either vagne or intricate inquiries. It IS only

 certain plain and practical traits of such legls- 1 lation that 1 desire to recommend to your at l tention. In any legislation providing for sll- l yer coinage, regulating it's value and lmpartlng

 to it the quality of legal tender, it seems to me

 of great importance that congress should not lose sight of its action as operating in two-fod

 capacity and in two distinct directions Ii the United States government were free from | public debt, it's legislative dealing with the question of silver coinage would bepurely sov- l eregn and governmental, under no restraints l but those of constitutional power and the pub lie good as affected by the proposed legislation l But in the actual circumstances of the nation, | with vast public debt distributed very widely among our own citizens, and held III great

 amount also abroad, the nature of the silver ! coinage measure as affecting this relation of 1 the government to the holders of the public debt, becomes an element in any proposed leg islation of the highest concern. The obliga- tion of the public faith transcends all questions | of profit or public advantage otherwise. It's unquestionable maintenance IS the dictate as well of the highest eXpediency as of the most necessary duty, and will ever be carefully ! guarded by congress and people alike. The | public debt of the United States to the amount | of $729, 900, 900 bears interest at the rate ot l six per cent, and $708 GOO, 900 at the rate of | five per cent, and the only way in which the | country can be relieved from the payment of these highsrates of interest, is by advantageous 1 ly refunding the indebtedness. Whether the debt is ultimately paid in gold or in silver coin l is of but little moment, compared with the | possible reduction of the interest One-thlrd by | refunding it at such reduced rate. If the Uni | ted States had the unquestioned right to pay it's

 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 of the public creditors. All the bonds l that have been issued since February 12, 1973 ! when gold became the only unlimited le- l gal tender metallic currency of the country, 1 are justly payable in gold coin or in coin of l equal value During the time of these issues l the only dollar that could be or was received 1 by the government in exchange for bonds was l the gold dollar To require the public creditors l to take inrepayment any dollar of less commer- cial value would be regarded by them as re-

 pudiation of the full obligation assumed. The 1 bonds issued prior to 1873 3were issued at time

 when the gold dollar was the only coin in cir l culation, or contemplated by either the govern | ment or the holders of the bonds as the coin in which they were to be paid. It is far better to

 pay these bonds in that coin than to seem to 1 take advantage of the unforeseen fall of silver l bullion to pay in new issue of silver coin l thus made so much less valuable. The power l of the United States to coin money and to reg ulate the value thereof, ought never to be ex- ercised for the purpose of enabling the govern

 meHt to pay it's obligations in coin Of less value than that contemplated by the parties 1 when the bonds were issued. Any attempt to pay the national indebtedness in a coinage of | less commercial value than the money of the l world would involve violation of the public faith and work irreparable injury to the pub

 lie credit It was the great merit of the act of March, 1869, in strengtheningthe public credit l that it removed all doubt as to the purpose of l the United States to pay their bonded debt in | coin. This act was accepted as pledge of public faith. The government has derived l great benefit from it in the progress thus far

 made in refunding the public debt at low rates 1 of interest An adherence to the wise and just policy of an exact observance fthep public faith | will enable the government rapidly to reduce

 the burden of interest on the national debt to an

 amount exceeding $20, 900, 900 per annum and ] effect an aggregate saving tothe United States l of more than $500 900, 900 before the bonds

 can be fully paid,

 In adapting the new silver coinage tothe or dinary uses of currency in the everyday trans actions of life, and prescribing the quality of l legal tender to be assigned to it. a considera-

 ton of the first importance should be so to ad- just the ratio between the silver and the gold

 coinage. which now constitute our specie cur

 rency, as, to accomplish the desired end of

 maintaining the circulation of the two metal lie currencies, and keeping up the volume of

 the two precious metals as our intrinsic money. It is vexed question for scientific reasoning I and historical experience to determine how far and by what methods, practical equilibrium

 can be maintained which will keep both met.

 als in circulation in their appropriate spheres

 of common use. An absolute equality of com

 mercial value free from disturbing influences,

 is hardly attainable, and without it an unlimi-

 ted legal tender for private transactions assign

 ed to both metals would irTeparably tend tc

 drive out of circulation the dearer coinage, and

 disappoint the principal object proposed by

 the legislation in view. I apprehend, there.

 fore, that the two conditions of near ap