Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 2, 1878

No. 27.
Mr. Kasson to Mr. Evarts.

Legation of the United States,
Vienna, April 9, 1878. (Received April 24.)

No. 65.]

Sir: Your dispatch No. 24, covering the recent enactment of Congress respecting the coinage and use of silver money, was received on Saturday. On the following Monday (yesterday) I brought it to the attention of Baron Orezy, at the foreign office, in obedience to your instructions, handing to him the written invitation, of which a copy is herewith inclosed (A), and adding further verbal explanations of the policy adopted by the United States Government and the considerations which rendered an international conference expedient, and even necessary. As these remarks were only a development of the points made in my written note (A), it is not necessary here to repeat them. It should, however, be stated that the conversation touched one additional question, that of creating an international unit of money, containing an agreed quantity of the precious metal, (gold or silver,) and which should serve for all purposes of international commerce and account. He was most emphatic in the expression of his estimate of the immense economical advantages of such a standard unit.

Without committing himself upon the subject of the conference, he appreciated the views which are favorable to it, and remarked that according to usage the subject must be referred to the treasury department for their judgment. I expressed to him the gratification it would afford me to be able to give an early response to my government, and the interview was closed.

I have, &c.,

JOHN A. KASSON.

[Inclosure to dispatch No. 65.]

Mr. Kasson to Count Andrássy.

The undersigned, envoy extraordinary and minister plenipotentiary of the United States of America, has the honor to advise his excellency the Count Andrássy, minister of the imperial house and I. R. minister for foreign affairs, that he is instructed by his government to deliver to the Government of Austria-Hungary a copy of the recent law enacted by the Congress of the United States respecting the coinage and use of silver money; and especially to call attention to the provisions of the second section of that law.

The experience of the United States of America in the use of gold as the only standard of metallic money has led their government to the conclusion that the use of both gold and silver in the business of the world, under proper relations of value, is more advantageous to the interests of international as well as national commerce than the use of either one of the precious metals as the exclusive standard of value. The recent law, of which a copy is inclosed for his excellency’s information, rests upon the proposition that an increase of metallic money, of universally recognized value, will tend to lighten the public burdens, revive commerce when depressed, and maintain its solvency and activity in time of prosperity.

The same law recognizes the necessity, in order to maintain both metals in free circulation, that their mutual relations of value should be internationally adjusted in such a manner that neither coin may gain, through temporary fluctuations in local markets, such predominance in value and use as to exclude the other from circulation, and so defeat the object sought for by the constant employment of both. The most practicable if not the only means for the attainment of this important result, in which all the commercial nations are equally interested, appear to be found in a conference of the principal governments engaged in the commercial and financial exchanges of the world. It is, therefore, provided by this act of Congress, that whenever three or more of the governments of Europe shall have signified their willingness to unite in such a conference with the Government of the United States, the time and place of its meeting shall be determined by common consent, with a view to an early day for the commencement of its deliberations.

The undersigned, therefore, has now the honor, in the name of the Government of the United States, to invite the Government of Austria-Hungary to join the United States in a conference, to adopt a common ratio between gold and silver, for the purpose of establishing, internationally, the use of bi-metallic money, and securing fixity of relative value between those metals; such conference to be held at such place in Europe, or in the United States, at such time within six months, as may be mutually agreed upon by the executives of the governments joining in the same, whenever the governments so invited, or any three of them, shall have signified their willingness to unite in the same.

The undersigned allows himself to express the hope that the government of His Imperial and Royal Majesty will associate itself with this proposition, in order that the suggested conference may have the benefit of their experience in the use of the silver standard, and of their wisdom, in this effort to facilitate the restoration of commercial and industrial activity, and for the more secure maintenance of the public prosperity in the future.

The undersigned will also be glad to receive from his excellency Count Andrássy, in case of the acceptance by this government of the President’s invitation, intimation of his views in respect to time and place of meeting of the conference.

And he avails himself of this occasion to renew to his excellency Count Andrássy the assurance of his most distinguished consideration.

JOHN A. KASSON.

Legation of the United States,
Vienna, April 8, 1878.