Year: 1878

To the House Of Representatives:


After very careful consideration of the
House Bill 1903, entitled can act to
authorize the coinage of standard silver
dollar and to restore its legal-tender charac-
ter" I feel compelled to return it to the
House of Representatives, in which it
originated, with my objections to its passage.


Holding the opinion which expressed in
my annual message, that neither the inter-
ests of the Government nor of the peop'e of
the United States would be promoted by
disparaging 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 a measure of both metals as their
relative commercial value will permit,
would be neither unj Just 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 C untry
tracts, either public or private, nor in.
juriously affect the public credit.


1t is only on the conviction that this bill
does not meet these essential requirements
that feel it my duty to withhold from it my
approval.


Ny present official duty as to this bill per-
mits only an attention to specific objections
as to justify me in asking from the wisdom
and duty of Congress that further consider
alton of the bill, for which the Constitution
has in such cases provided.


The bill provides for the coinage of silver
dollars, of the weight of 412N grains each,
of standard silver, to be legal tender to
their nominal value for all debts and duties,
public and private, except where otherwise
expressly stipulated in contracts.


1t is well known that the market value of
that number of grains standard silver dur
ing the past year, has been from ninety to
ninety-two cents, as compared with the
standard gold dollar. Thus the silver 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 recognize
such coin as lawful money. The right to
pay duties in silver, or in certificates of
silver deposits, will, when they are issued
in sufficient amount to circulate, put an end
| to the receipts Of revenue in gold, and thus
compel the payment of silver for both the
principal and interest of the public debt.
81 ,143, ,494, 400 of the bonded debt now out
standing was issued prior to February, 1873,
when the silver dollar was unknown in the
circulation of this country, and with only q
| convenient form of silver bullion for exporta-
ton; $583,440,350 of the bonded debt has
been issued since February, 1873, 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 understood 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
| they would be paid in silver. The sum. of
1926, ,000,0 of those bonds has been sold
during my Administration for gold coin,
| and the United States received the benefit
of these sales by a reduction of the rate of
interest to four per cent.


During the progress of these sales. a doubt
| was suggested as to the coin in which the
! payment of these bonds would be made,
The public announcement was thereupon
4 authorized, that it was not to be anticipated
| that any further legislation of Congress, or
| any action of any department of the Gov
| eminent, would sanction or tolerate the re-
demption of the principal of these bonds,
i 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.


In view of these facts it will Justly be re.
garded as grave breach of the public faith
to undertake to pay these bonds, principal


or interest, in silver coin worth in the mar.
/ ket less than the coin received for them.


1t is said that the silver dollar made q


legal tender by this bill will, under its opera,


tions, be equivalent in value to the gold


dollar. Many supporters of the bili 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 measure is that il


contains no provision protecting from its


operation pre-existing debts, in case tht


coinage which it creates shall continue t.


be of less value than that which was thu


sole legal tender when they were contracted
If it is now proposed, for the purpose o


taking advantage of the depreciation O


81 yer in the payment of debts, to coin ant


make legal tender a silver dollar of les
of gold or paper, which is now the Lawful


money OF this country, such a measure, i