Year: 1877

ernment to pay its obligations in coin of less
value than that contemplated by the parties
when the bonds we're issued. Any attempt to
pay the national Indebtedness in coinage o1
less commercial value than the money of the
world, would involve violation of the public
faith, and work irreparable injury to the pub
lie credit. 1t was the great merit OF the acl
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 pledge of public faith. The government
have derived great benefit from it in the pro
gress thus far made in refunding the public
debt at low rates of interest. An adherence
to the wise and just policy of all exact observ'
ance of the public faith, will enable the gov
ernment rapidly to reduce the burden of in
terest on the national debt to an amount not ex
ceeding $20,00O,000 per annum, and effect an
aggregate saving to the United States of more
than $3OO,O0O,O00 before the bonds can be
fully paid. -


In adapting the silver coinage to the ordi
nrry uses of currency in the every day trans
actions of life, and prescribing the quality Of
legal tender to be assigned to it, considera'
tion 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 circulation of the two metal.
ic currencies, and keeping up the volume OF
the two precious metals as our intrinsic money
It is a mixed question for scientific reasoning
and historical experience to determine how
far, and by what methods, practical equilib-
rum can be maintained, which will keep both
metals in circulation, in their appropriate
spheres of common use. An absolute equali.
ty of commercial value, free from disturbing
fluctuations, s hardly attainable, and without
it an unlimited legal tender for private trans
actions. assigned to both metals, would ire
sistibly tend to drive out of circulation the
dearer coinage, and disappoint the principal
object proposed by the legislation in view.
Iapprehend, therefore, that the two conditions
of near approach to equality Of commercial
value, between the gold and silver coinage of
the same denomination, and of Limitation
of the amounts for which the silver coinage is
to be legal tender, are essential to maintain
ing both in circulation. If these conditions
can be successfully observed: the issue from
the mint, of silver dollars. would afford mate.
rial assistance to the community, in the tran.
sition to redeemable paper money, and would
facilitate the resumption of specie payment
and its permanent establishment. Without
these conditions, fear, that only mischief
and misfortune would flow from coinage of
silver dollars, with the quality of unlimited
legal tender in private transactions Any ex.
pectation of temporary use, from the issue OF
silver coinage to pass as legal tender, at a
rate materially aboveits commercial value, is,
am persuaded, deluson nor can | think
that there is any substantial distinction be-
tween an original issue of silver dollars, at a
nominal value materially above their COM
mercial value, and the restoration of the sill
yer dollar at rate which once was, but has
ceased to be, its commercial value. Certainly,
the issue of our gold coinage, reduced in
weight materially below its legal tender value,
would not be any the less a present debase'
ment of the coinage, by means of its equaling
or even exceeding in weight all old coinage
which at some past time had been CONNER.
cially equal to the legal-tender value assigned
to the new ISSUE In recommending that the
regulation of any silver coinage which may
be authorized by Congress should observe
these conditions of commercial value and
limited legal.tender. am governed by the
feeling that every possible increase should be
given to the volume of metallic money, which
can be kept in circulation, aud thereby every
possible aid afforded to the people in the pro-
cess of resuming specie payments.


It is because of my firm conviction that
of these conditions would Illustrate
the good results which are desired from the
proposed coinage, and enbarrass with new
elements of confusion and uncertainty, the
business of the country, that l urge upon your
attention these considerations. respectfully
recommend to Congress that, in any legisla-
tion providing for silver coinage and i'm
parting to it the quality of legal tender, there
be impressed upon the measure firm provis'
ion exempting the public debt heretofore is.
sued and now outstanding, from payment,
whether of principal or of interest, in any
coinage of less commercial value than the
present gold coinage of the country.


MEXICO.


The revolution which recently occurred in
Mexico, was followed by the accession of the
successful party to power, and the installation
of it's chief, Gen. Por6rio Diaz, in the Presi.
Dental office. 1t has. been the custom Of the
United States when such changes of govern
ment have heretofore occurred in Mexico, to
recognize and enter into official relations with
the de facto government as soon as it should
appear to have the approval of the Mexican
people, and should manifest disposition to
adhere to the obligation of treaties and inter
national friendship. In the present case such
official recognition has been deferred by the
occurrences on the Rio Grande border, the
records of which have already been commun-
Gated to each house of Congress, in answer to
their respective resolutions of inquiry. AS
surances have been received that the authori.
ties at the seat of the Mexican government
have both the disposition and the power to
prevent and punish such unlawful invasions
and depredations. 1t is earnestly to be hoped
that events may prove these assurances to be
we'll founded. The best interests of both
countries require the maintenance of peace
upon the border, and the development of COM
merce between the two Republics. 1t is graf


flying to add that this temporary interruption
of official relations has not prevented due at
tention by the representatives of the United
States in Mexico to the protection of Ameri-
can citizens, so far as practicable; nor has it
interfered with the prompt payment of the
amounts due from Mexico to the United States
under the treaty of July 4, 1868, and the
awards of the joint commission. While l
do not anticipate an interruption of friendly
relations with Mexico, yet cannot but look,
with some solictude, upon continuance of
hnrler disorders as exnnsing the two countries