Twenty Years of Congress, Volume 2 / From Lincoln to Garfield, with a Review of the Events Which Led to the Political Revolution of 1860

by James Gillespie Blaine

These official utterances were put forward in the heat of the general discussion, and fell upon the ears of persons already engaged on one side of the other of the earnest controversy in regard to the coinage of silver. Congress was at once called upon from an unexpected source to make a declaration hostile in its aim and purpose to the policy advocated both by the Head of the Nation and its chief financial officer. In direct hostility to the recommendations of an Ohio President and an Ohio Secretary of the Treasury, an Ohio senator, Mr. Stanley Matthews, moved a concurrent resolution in the Senate, declaring that "all bonds of the United States are payable in silver dollars of 412½ grains, and that to restore such dollars as a full legal-tender for that purpose, is not in violation of public faith or the rights of the creditor." A motion to refer the resolution to the Committee on the Judiciary was defeated—ayes 19, noes 31. It was kept before the Senate for immediate consideration and discussion. The eagerness for debate on the subject is shown by the record. Thirty-four senators delivered speeches, most of them elaborately prepared, going over the history of the precious metals, the field of American legislation, and international practice in money.

The Senate refused to adopt Mr. Conkling's suggestion to make the resolution joint instead of concurrent and thus require the signature of the President. Mr. Matthews had framed it so as simply to evoke an expression by both branches of Congress without sending it to the Executive, whose opinions had just been made known through his annual message. This was intended as an expression of dissent on the part of Congress from the views of the President. Mr. Edmunds moved an amendment declaring that "the bonds are payable in gold coin or its equivalent, and that any other payment without the consent of the creditor would be in violation of the public faith." It was defeated—ayes 18, noes 44. On an amendment offered by Mr. Justin S. Morrill, declaring that "the bonds will be payable in silver if the Silver Bill becomes the law of the land," the division was ayes 14, noes 41. On the passage of the resolution in the Senate, the ayes were 43, the noes 22. In the House of Representatives, the resolution was passed under a suspension of the rules,—ayes 189, noes 79. This proclamation of the financial creed of Congress was made complete on the 28th of January, 1878.

On the 5th of the previous November, during the extra session, the House passed, under a suspension of the rules, a bill for the free coinage of silver dollars of 412½ grains, full legal tender for all debts public and private. Mr. Richard P. Bland of Missouri was the author of the measure. The vote upon it stood 163 ayes to 34 noes, 93 members not voting. It was reported in the Senate with amendments, in December, and its discussion was superseded for the time by the resolution of Mr. Matthews. As reported from the Finance Committee, it provided for a coinage of dollars of 412½ grains to the extent of not less than $2,000,000 or more than $4,000,000 per month; all seigniorage to accrue to the Treasury. A second section, proposed by Mr. Allison of Iowa, authorized the President to invite other nations to take part in a conference, and to appoint three Commissioners to represent the United States, with a view to the adoption of a common ratio for gold and silver.

The bill gave rise to a longer and broader discussion than that which had occurred on Mr. Matthews' resolution. It was opened by Mr. Morrill of Vermont. He pronounced the measure a "fearful assault upon the public credit. It resuscitates the obsolete dollar which Congress entombed in 1834, worth less than the greenback in gold, and yet to be a full legal-tender." He thought that the causes of the depreciation of silver were permanent. "The future price may waver one way or the other, but it must finally settle at a much lower point. Nothing less than National will and power can mitigate its fall."

—Mr. Wallace of Pennsylvania charged that the opponents of the bill, were "taking a course for the abasement, depreciation and disuse of silver. The supporters of the bill favor both gold and silver."

—Mr. Dawes dwelt on the uncertain commercial value of silver and on the harm to the public credit threatened by the impending measure, insisting that the cheapest money would be our only money.

—Mr. Beck of Kentucky submitted a proposition to direct the coinage of "not less than $3,000,000 per month, or as much more as can be coined at the mints of the United States."

—Mr. Morgan of Alabama said the law did not deal with commercial values. It promised coin to the bondholder—coin of silver or coin of gold.

—Mr. Thurman of Ohio thought that the contract provided for the payment of public debts in coin of the standard of 1870, when the dollar of 412½ grains was full legal-tender, and that such dollar would approximate to gold in value.

—Mr. Kernan of New York said: "This bill does not proceed upon the basis that we are to make a silver dollar equivalent to a gold dollar," and thought that the cheaper coin would inevitably drive out the gold coin.