Rensselaer Union, Volume 10, Number 25, Rensselaer, Jasper County, 7 March 1878 — Why He Vetoed the Silver Bill. [ARTICLE]

Why He Vetoed the Silver Bill.

The following is the full text of President Hayes’ message vetoing the Silver bill: Executive Mansion, I Washington. D. C., Feb. 28,1878, f To the House of Representatives: After very careful consideration of House bill 1,093, entitled “An act to authorize the coinage of the standard silver dollar, and to restore its legal-tender character,” I ieel compelled to return it to the House of Representatives, in which it originated, with my objections to its passage. Holding the opinion which I expressed in my annual message, “that neither the interests of the Government nor the people 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 qf intrinsic money to as >full a measure of both rnetals as their relative commercial vaßies will permit, would neither be unjast nor inexpedient,” it lias been my earnest desire to concur with Congress in the adoption of such measures to increase the silver coinage of the country as would not impair the obligation of contracts, either public or private, nor injuriously affect the public credit. It is only upon the conviction that this bill does not meet these essential requirements that I feel it my duty to withhold from it my approval. My present official duty as to the bill permits only an attention to specific objections to its passage, wheih seem to me so important as to justify me In asking from the wisdom and duty of Congress that further consideration of the bill for which the Constitution has in such cases provided. The bill provides for the coinage of silyei dollars of the weight of 412 U grains each, ot standard silver, to be a legal tender at their nominal value for all debts and‘dues, public and private, except where otherwise expressly stipulated in contracts. It is well known that the market value of that number of grains of standard silver during 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 8 to 10 per cent, less than it purports to be worth, and is made a legal tender for debts contracted when the law did not recognize such coins 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 receipt of revenue in gold, and thus compel the payment of silver for both the principal and interest of the public debt. Of the bonded debt now outstanding, sl,143;493,400 was issued prior to February, 1873, when the silver dollar was unknown in circulation in this country, and was only a convenient form of silver bullion for exportation; *583,440,350 of the 'bonded debt has been issued since February, 1873, when Sold alone was the coin for which onds 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 depreciated, and when no one would have bought them If it had been understood that they would be paid in silver. The sum of *225,000,000 of these 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 4 per cent. During the progress of these sales a doubt was suggested as to the coin in which payment of these bonds would be made. The public announcement was thereupon authorized that it was not to be anticipated that any further legislation of Congress, or any action of any Department of.the GovemmenL would sanction or tolerate redemption of the principal of these bonds, or payment of interest thereon, in coin of less value than the coin authorized by law at the time of the .issue of th? bonds, being the coin exacted by the Government in exchange for the same.

In view of these facts, it will be justly regarded as a grave breach of public faith to undertake to pay these bonds, principal or interest, in silver coin worth in the market less than the coin received for them. It is said that the silver dollar made a legal-tender by this bill will, under its operation, be equivalent in value to the gold dollar. Many supporters of the bill believe this, qnd 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 bill is, that it contains no provision protecting from its operation pre-existing debts in case the coinage which it creates shall continue to be of less value than that which was the sole legal-ten-der when they were contracted. If it is now proposed, for the purpose of taking advantage of the depreciation of silver in payment of debts* to coin and make a legal-tender a silver dollar of less commercial value than any dollar, whether of gold or paper, which isnowlawful money in this country, such a measure, it will hardly be questioned, will, in the judgment of mapkind* be an act of bad faith. As to all debts heretofore contracted, the silver dollar should be made a legal-tender only at its market value. The standard of value should not be changed without the consent of both parties to the contract. National promises should be kept with unflinching fidelity. There is no power to compel a Nation to pay its just debts. Its credit depends on its honor. The Nation owes what it has led or allowed its creditors to expect I cannot approve a bill which, in my judgment, authorizes the violation of sacred obligations. The obligation of public faith transcends all questions of profit or public "advantage. Its unquestionable maintenance is the dictate as well of the highest expediency as of the most necessary duty, and should ever be carefully guarded by the Executive, by Congress and by the people. It is my firm conviction that if the country is to be benefited by a silver coinage, tt can be dene only by the issue of silver dollars of full value, which will defraud uo man. A currency worth less than it purports to be worth will in the end defraud,not only the creditors, but all who are engaged in legitimate business, and none more surely than those who are dependent on their daily labor for their daily bread. R. B. Haras. , Bhackets orr the wall are bandy things. By hitting them you always know when you reach the wall, they catch what dust is overlooked by the picture frames and center table, and Sundays you are kept Out of trouble nailing up those which have tumbled down during the week.— Bridgeport Standard. The wholesale merchants of the United States now employ, all told, not less than 60,000 travelers, at an average expense of at least SB,OOO each, making as direct cost, to the wholesalers, of this system the enormous ag.gregate of slßo*ooo,ooo a year. - l. . : ■ ' -* • ' ’ r ■