ard of value, but
cannot be the current money of the country. Silver also can only
be used as money for the small transactions of life, its weight
and bulk forbidding its use in commerce or trade. The fluctuations
in market value of these metals make it impossible to permit the
free coinage of both at any ratio with each other without demonetizing
one of them. The cheaper money will always be the money in
circulation. Wherever free coinage now exists silver is the only
money, while where gold is the standard, silver is employed as a
subsidiary coin, maintained at par in gold by the mandate of the
government and its receipt for or redemption in gold. The only
proposed remedy for this fluctuation is an agreement by commercial
nations upon a common ratio, but thus far all efforts for such an
agreement have failed. If successful the result might not be as
satisfactory as anticipated.

I urged, in my report, the importance of adjusting the coinage
ratio of the two metals by treaties with commercial nations, and,
until this could be done, of limiting the coinage of the silver
dollar to such sum as, in the opinion of Congress, would enable
the department to readily maintain the standard dollars of gold
and silver at par with each other.

In this report I stated the refunding transactions already described,
and recommended the refunding of all bonds of the United States in
the same manner as they became redeemable. This was successfully
executed by my successors in office. I was able to say truly of
the treasury department, in conclusion:

"The organization of the several bureaus is such, and the system
of accounting so perfect, that the financial transactions of the
government during the past two years, aggregating $3,354,345,040.53,
have been adjusted without question, with the exception of a few
small balances now in the process of collection, of which it is
believed the government will eventually lose less than $13,000, or
less than four mills on each $1,000 of the amount involved."

The question of the legal tender quality of United States notes,
discussed in my report, was followed, on the 3rd of December, by
the introduction in the Senate of a resolution by Mr. Bayard as
follows:

"_Resolved, etc._, That from and after the passage of this resolution
the treasury notes of the United States shall be receivable for
all dues to the United States excepting duties on imports, and
shall not otherwise be a legal