Year: 1877

Tor my approval may wholly supersed,


the necessity of my entering into tn,


considerations and, willing TO avoid


either vague or intricate inquiries, il i,


only the certain plain and practical


traits of such legislation that | desire q


recommend TO your attention. In any


legislation providing for a silver coin,


age, regulating its value and impartinr


to II the quality of legal-tender, il


seems 10 me of great importance that


Congress should not lose sight of its


action and operations i'm two-fold ca


pacity and in two distinct directions.


III the United States Government


were free from public debt, its legisla.


tive dealing with the question of silver


coinage would be purely sovereign and


governmental, under no restraints but


those of constitutional power, and the
public good as affected by the proposed


legislation. But i'm the actual circum-
stances of the Nation, with vast pub


lie debt distributed very widely among
our own citizens, and held i'm great
amount also abroad, the nature of the
silver coinage measures as affecting this
relation of the Government To the hold
ers of the public debt becomes an ele-
ment in any proposed legislation of the
highest concern. The obligation of the
public faith transcends all questions of
prefit or public advantage otherwise. and
its unquestionable maintenance is the
dictate as well of the highest expedi-
ency as of the most necessary duty
and will be carefully guarded by Con-
gress and the people alike. The public
debt of the United States, TO the amount
OF $729, ,O0O, 900 bears interest at the rate
of six per cent; and SOS, ,000, 900 at
the rate of five per cent; and the only
way IN which the country can be relieved
from the payment of the high rates of
interest is by advantageously refundinp
Indebtedness. Whether the debt Is
ultimately paid in gold or silver coin
Is OF but little moment compared with
the possible reduction of interest one.
third, by refunding il at such reduced
rates. IL the United States had the
unquestionable right To pay It's bonds
in silver coin, the little benefit from
that process would be greatly overbal-
lanced by the injurious effect of such
payment, if made or proposed against
the honest convictions of the public
debt.


All the bonds that have been issued
since February IL, 1873, when gold be-
came the only unlimited legal tender
metalicl currency of the country, are
justly payable in gold coin or coin of
equal values. During the time of these
issues the only dollar that could be, or
was received by the Government i'm ex-
change for bonds, was the gold dollar.
To require the public creditors TO take
in payment any dollar Of less CONNER
cial value would be regarded by them
as reputation of the full obligation
assumed The bonds issued prior TO
1873 were issued at time when the gold
dollar was the only coin in circulation,
or contemplated by either the Govern
ment or holders of the bonds as the coin
which they were to be paid. 1t is far
better to pay these bonds in that coin
than to seem TO take advantage of the
unforeseen fall of silver bullion, by pay
ing them i'm new issue of silver coin
that is so much less valuable.


The power of the United States TO coin
money, and to regulate the value thereof,
ought never TO be exercised for the
purpose of enabling the Government to
pay its obligations in a coin Of less value
than that contemplated by the parties
when the bonds were issued. Any at
tempt to pay the National Indebtedness
in coinage of less commercial value
than the money of the world would in
volye a violation of the public faith, and
work irreparable injury TO the public
credit. 1t was the great merit Of the act
of March, 1869, in strengthening the
public credit, that it removed all doubt
as to the purpose of the United States
to pay their bonded debt in coin. That
act was accepted as a pledge Of public
faith. The Government has derived
great benefit from it, in the progress
thus far made in refunding the public
debt, as low rates of interest and an adj
herence to the wise and just policy of
an exact Observance Of the public faith
will enable the Government rapidly TO
reduce the burden of interest on the
National debt 10 an amount exceeding
100000 per annum, and effect an
aggregate saving in the United States
Of more than three hundred millions
$500, 900, ,000) Of dollars before the bonds
can be fully paid.


In adapting the new silver coinage TO
the ordinary uses Of currency, in the
everyday transactions of life, and pre-
serving the quality Of legal-tender 10 be
assigned TO il, a consideration of the first
Importance should be so to adjust the
ratio between the silver and the gold
coinage, which now constitutes our
specie currency, as TO accomplish the
desired end of maintaining the circula-
ton OF the two metallic currencies, and
keeping up the svolume Of the two
precious metals as our intrinsic money.
II IS mixed question for scientific
reasoning and historical experience 20
determine how far and by what methods
n practicable equilibrium can be- main
tanned which will keep both metals in
circulation in their appropriate spheres
Of common use An absolute equality
Of commercial value free from disturb
ing fluctuations is hardly attainable,
and without it an unlimited legal-tendeT
for private transactions assigned 10 both
metals, would tend 10 drive out Of circu-
lation the dearest coinage, and disap-
point the principal object proposed by
the legislation in view


! apprehend, therefore, that the two
conditions Of near approach 10 an
equality Of commercial value between
the gold and silver coinage Of the same
denomination, and Of limitation Of
amounts for which the silver coinage is
to be n legal tender, are essential to
maintaining both in circulation.


If these conditions can be successfully
observed the issue from the mint Of
al ilvor dolla ~ would oNorI s,ofcrt,F ....s-