Year: 1877

"
Germ.


The obligation of the public faith
transcends all questions of profit or
public advantage. Otherwise its un-
questionable maintenance is the dictate
as well of the highest expediency as of
the most necessary duty, as will ever
be carefully guarded by Congress and
people alike.


The public debt of the United States
to the amount of 1928, 900, 900 bears in
terest at the rate of six per cent, and
SOS, ,000, 600 at the rate of five per
cent, and the only way in which


THE COUNTRY CAN BE RELIEVED
from the payment of these high rates of
interest is by aGvantageOusly refunding
the Indebtedness. Whether the debt is
ultimately paid in gold or silver coins
is of but little moment compared with
the possible reduction of interest one
third by refunding it at such reduced
rate.


If the United States had the unques-
toned right to pay its 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 convic-
tions of the public creditors.


All the bonds that have been issued
since Feb. 18th, 1873, when gold be-
came the only unlimited legal tender
metallic currency of the country, are
justly payable in gold coin, or in coin OF
equal value. During the time of these
issues, the only dollar that could be OF
was received by the government in ex-
change for bonds was the gold dollar.


To require the public creditors to
take in repayment any dollar of less
commercial value would be regarded
by them as reYudiatiOn of the full
obligation assumed. The bonds issued
prior to 1873 were issued at time wheI
the gold dollar was the only coin in cir.
culation, or contemplated by either o.
the bonds as the coin in which they
were to be paid.


1t Is far better to pay these bonds IL
that coin thantO seem to take advan


tage of the unforeseen fall of silver
bullion to pay in a new issue of silve
coin, thus made so much less valuable


The power of the United States tt
coin money and to regulate the value
thereof ought not to he exercised fo
the purpose of enabling the gOvernmen
to pay its obligations in


A COIN OF LESS VALUE


than that contemplated by the parties


when the bonds were issued.


Any attempt to pay the national in
debtedness in coinage of less CONNER
cial value than the money of the wOrl(


would involve violation of the publ,
faith and work inseparable injury t.
the public credit.


1t was the great merit of the act o


March, 1869, in strengthening the pub


lie credit, that it removed all doubt al
to the purpose of the United States t,


pay their bonded debt in coin. Tha


act was accepted as pledge of th,


public faith.


The government has derived grea


benefit from it in the progress thus fa


made in refuDding the public debt a
low rates of interest.


An adherence to the wise and jus


policy of an exact observance of til,
public faith will enable the government


rapidly to reduce the burden of interes


on the national debt to an amount ex
ceeding twenty million dollars per an
mum, and effect an aggregate saving t.


the United States of more than thre
hundred million dollars before tn
bonds can be fully paid.


In adapting the new silver coinage t.


the ordinary uses of currency, in th
everyday transactions of life, and pre-
scribing the equality of legal tender t,
: be assigned to it, consideration of tn
first importance should be so to adjus
the ratio between the silver and tn


gold coinage, which now constitute on
specie currency, as to accomplish tn
desired end of maintaining the circula
tion of the two metallic currencies an,
keeping up the volume of the two pre-
cious metals as our intrinsic money.


1t is mixed question for scientiti


reasoning and historical experience +
determine how far and by wha


methods,


A PRACTICAL EQUILIBRIUM
| can be maintained which will keep bot
2 metals in circulation i'll their appropri
ate spheres of common use.


An absolute equality of commercia
: value, free from disturbing fluctuations
t is hardly attainable, and without it a
: unlimited legal tender for private trans
f actions assigned to both metals woul
g irresistibly tend to drive out of circula
e tion the dearer coinage and 1disappoin
the principal object proposed by til
: legislation in view.


? l apprehend, therefore, that the tw
e conditions of near approach to equal
ity of commercial value between til
= gold and silver coinage of the same Gle
: nomination, and of limitation of th
f amounts for which the silver coinage
D to be legal tender, are essential t
: maintaining both in circulation.
e If these conditions can be successful
a ly observed, the issue from the mint {
e silver dollars would afford material as
i sistance to the community in the trans
< ton to redeemable paper money, an
e would facilitate the resumption of spe
S Gle payment and its permanent estal
b iishment.


Without these conditions / fear tina
e only mischief and misfortune woul
e follow from coinage of silver dollar
e with the quality of unlimited legal ter
: der even in private transactions.
e Any expectation of temporary eas
n from an issue of silver coinage to pas
: as legal tender at rate material
e above its commercial value is Q al
! persuaded) delusion.


: Nor can think that there is any sui


stantial distinction between an origin;


issue of silver dollars at nonin;
g value materially above their comme
- cial value, and the restoration of I'll
;, silver dollar at rate which once wa
;, but has ceased to be,


n ITS COMMERCIAL VALUE.
: Certainly the issue of our gold coil


age, reduced i'll weight materially b'
a low its legal tender value, would d.
d be any the less present debasemeI
J. of the coinage by reason of its equallir