Year: 1878

PaT Tmemt M the Public


Debt in silver.


Mr.. President, the resolutions o.
J fered by the Senator from Ohio MI
Matthews] place construction W
on the acts of Congress that author


lied the officers of the United State


to issue and sell its bonds. They as


certain with precision the obliga


tionsimposedu upon the United State


and the rights acquired by the pub


lie creditors as to the money of pay


ment.


1t is understood that the action O


the Senate on these resolutions will


be an indication of its probable &C


tiOn on bill that has come from


the House of Representatives Il


amend the coinage laws and restore


the silver dollar TO our money sys


tenn. Once restored the silver dollar


will be legal-tender money for the
payment of all debts, public anC
private. The sum-tOtal of these


debts is supposed to exceed $8,000,,
000,000.


/ In view of the magnitude of the


interests to beaffected, the questions


presented by the resolutions should


be examined with great care and
decided with judicial impartiality
| S'elf-interest should not be permitted
1 to mislead us i'm the Investigation
ner to betray our judgments in reach
| ing a conclusion. And we should
| not forget that our deliberations, our
discussions, and ultimate action will
pass in review before an enlightened
public opinion.
At the very threshold Of this eX-
animation we are met with the dec
laration that the resolutions affirm
| what is false in fact and betray a
purpose to do what is condemned by
good morals. Weare told that their
adoption by Congress will be an act
of repudiatiOn of the solemn con-
tracts of the Government, will be
destructive to the rights of the pub
lie creditors, and will bring disgrace
upon the Government and people of
the United States.


If the affirmation be true, there
should be an end to this debate.
The resolutions should be defeated
by unanimous vote and the sub
ject buried forever out of the sight
and recollection of mankind. A
Government able to fulfill the Obli-
cations of its contracts cannot afford
to repudiate the obligation. Neces-
sity and necessity alone may be of
fered as an excuse. Its pledges, once
given, are sacred. Religion, morals
and sound policy unite in taking
them under their protection and in
fiict upon the violater of their sane
tity punishment commensurate
with the wrong.


But the very subject for inquiry
is, what acts did the Government
agree to perform and what obliga-
tiOns were assumed? The agree
ment and the obligations are the
only foundation for and the only
measure of the creditors rights.
These rights, when ascertained, are
placed under the protection of the
Constitution and laws. They are in
the nature of property. They cannot
be invaded; they cannot be imper-
lied they should not be questioned.


But as the rights of the creditor
rest upon contract as their only fOun-
datiOn, and the contract must have
been made in pursuance of and in
obedience of law, we are compelled,
in the examination before us, to look
to the legislation upon the subject
and ascertain the laws applicable at
the time the contract was made.


Inthe present stage of civilization,
with the extensive commerce, for
eign and domestic, that characterize
modern life, the power to coin
money, and thereby make a legal
medium of exchange, is one of the
essential attributes of sovereignty.
The trainers of the Constitution, in
establishing our own Federal Gov
ernment of limited powers, were
careful that it should not be left
without this power so essential to
the well-being of the people, and
therefore it was ordained


The Congress shall have power $ - s. to
coin money, regulate the value thereof, and
of foreign coin.


The power thus conferred is abSO-
lutte and exclusive; it exists at all
times, and from generation to gene
ration can be exercised according to
the varying wants and necessities of
the people. 1t is without limitation;
and whatever Congress may impress
with the stamp of the nations SOW
ereignty, as coin, becomes legal-ten-
der money according to its regulated
value. 1t is sufficient for the pay
ment of all debts, and cannot be
questioned. When rendered the
creditor must accept it. He has no
option. 1t makes no difference that
there may have been a change in its
regulated value after the creation of
the obligation and before the time
of its performance. The debtor is
bound to pay and the creditor is
bound to accept lawful money. This
may seem to be hard law, but for all
that it is law. We may question the
wisdom or the justice of such legis
latiOn, but we cannot doubt its bind
ing force. | refer to this because it
may throw some light on the subject
to be considered, and explain why
a particular phraseOlOgy was embod-
led in an act of Congress.


Now this power to coin money
was brought into play at Il very
early period in our history. In 1892
the first coinage act was passed.
Congress then estimated that one
pound Of pure gold was equal to tif-
teen pounds of silver, and made
both gold and silver legal-tender
money in that relation of value.
Under this act the first gold and sill
yer coins were made, and down to
1873 the mint had turned out about
$50, ,OOO,00O of silver and $23, 1000
of gold.


Experience in that period demon
strated that in fixing the relation of
the two metals gold had been esti-
mated too cheaply, and as a cOnse-
quence the coins of that metal were
bought up and exported to other
countries. In 1894, Congress again
undertook to regulate their values,
and, not disturbing the weight of
the silver dollar, reduced the num-
Der of grains of pure gold in the gold
dollar, and ordained that one pound
of pure gold was equal in value to
1898 pounds of pure silver, and that
both should be legal-tender money,
receivable in payment Of all debts,
public and private. Now in 1884
our public debt, although in the
process of being paid off, was not
entirely paid. Private contracts
were in existence for the payment
of money to the amount of hundreds
oF r.nJVo