Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-04-23
Veto Of the Seuate Financ Bill.
THE PRESIDENT REASONS FOR DIsAPPRoVINa
THE MEASURE

The President yesterday transmitted to the
Senate bis message returning, without bis ap-
proval, the finance bill originating IN that BODY
and recently passed by both housesot Congress
authorizing the increase of the United States
legal-tender and the national bank note clrcula'
tiou to au aggregate Of $500, 900. 600. The mes
sage is as follows:
To the Senate ofthe United States: Here
with I return Senate blI No. GIT, entitled AN
acr ,o fix the amount of United States notes
and the circulation Of national banks and for
other PURPOSES" without my approval.
L; dvipg so must express my regret at moi
ha;ur able to give my assent TO measure which
has received the sanction OF uaJ 'riy OF the
/, gi-ators chosen by the people 10 make laws
for their guidance, and have studluusly sought
m find Sufficient arguments u justify such as
sent, but was unsuccessful.
Practically il is a question whether the meas
pre- under discussion would give an additional
dollar to the irrrdeemable paper currency or Inc
country or not, and whether, by requiring three
tourths of the reserves to he retained by the
baUks, and prohibiting interest to be received
on the baiauce, it nj ght DOT prove contraction.
But the fact canuot be concealed that, theorct-
icaiIy, the bill increases the paper circulation
slOO, OOO, U0U, less ouly the amount OF reserves
restrained from circulation by the provision OF
the second section. The measure has been sup
ported on the theory that it would give lu
creased circulation. 1t is fairiniereDce there
fore. that if, in practice, the measure should
fail to create the abundance of circulation ex-
pected of it, the friends of the measure, partl.
cularly those out of Congress, would clamor tor
such Initiation as would give the expected reliet.
The theory, 10 my belief, is a departure from
the true principles OF fnauce, uatoual interest,
uatioual obligations TO creditors, congressional
promises, party pledges on the par4 OF both po-
ii,cal parties and of personal views and prom
Uses made by me in every annual message sent
to Congress and in each inaugural address.
Ia my annual MASSAGE to Congress 10 Decem-
Der, 1869, the following passages appear.
Among lhe evils growing out of the rebel
lion and not yet referred to is that of 40 ire
deenable currency. 1t is an evil which | hope
will receive your most earnest attention. 1t Is u
duty and one Of the highest duties of govern
ment to secure to the citizen medium of ex-
change OF fixed unvaryiUg value. This implies
return to specie basis, and no substitute for
it eau be devised 1t should be commenced now
and reached at the earliest practicable moment
consistent with fair regard to the interest OF
the debtor class. Immediate resumption, it
practicable, would not be desirable 1t would
compel the debtor class TO pay beyond their
contracts the premium on gold at the date OF
their purchase and would bring ban kruptcy and
ruin to thousands.
'Fiuc! uations, however, 10 the paper value
of the measure of all values (gold) is detrimen-
tai to the interests Of trade. 1t makes the man
of business an Involuntary gambler, tor, in all
sales where future payment is to be made, both
parties speculate as to what will be the value of
the currency to be paid aud received. [ ear
nestly recommend to you, then, such leglsa-
ton as will insure gradual return to specie
payments and put an immediate stop to huc-
tuatioas in the value of currency | still ad
here to the views then expressed.
As early as December 4, 1865, the House of
Representatives passed a resolution, by a vote
of l44 yeas to nays concurrlng lin the views
Of the Secretary of the Treasury in relation to
the necessity Of a contraction OF the currency
with view to as early resumption OF specie
payments as the business interests of the coun-
try will permit" and pledging Go operative
action to this as speedily as possible
The first act passed by the Forty first Con-
gress, on the 18th day of March, 1869, was as
follows:
AN ACT to strengthen the public credit of the
Be 1t enacted, 6c.. That in order to remove
any doubt rs to The purpose of the government
to discharge all its obligations to the public cred
itors, and to settle conflicting questions and in
corporations Of the law, By virtue of which such
obligations have been contracted it is hereby pro-
vided and declared that tho faith of the United
States is solemly pledged to The payment in
in, or its equivalent Of all the obligations of
the United States and OF all the interest bearing
Obligations, except in cases where the law au-
thorizing the issue of any such obligations has
expressly provided that ;hs sam, may be paid
in lawful money, or in other currency than gold
and 81 war; but none Of the said interest beArin q
Obligations, not alrca ly due, Shall be redeemed
or paid before maturity, uni'ss at such times rs
the United States notes SD Il be convertible into
col 4 ut the option Of th holder, o., unless ut
sucu iilne bonds of the U nitcd States, barring
lower rats OF interest thai the bonds to be re-
de, med can be sold at par in coin And the
United States also S,icmaly pledges its faith Ito
make provision at tho earl st practicable period
for the redemption of the United States notes in
coin.
This act still remains as u continuing pledge
of the faith of the United s ates ITO make pro-
vision at the earliest practicable moment for
the redemption of the United States notes in
coin.
A declaration contained 10 the act of June
80, 1864, created an obligation that the total
amount of Uoited States nutes issued, or to be
issued, should never exceed four hundred mil
lious of dollars. The amount in actual circula,
ton was actually reduced to three hundred and
itty-siS millions of dollars, at which point Con-
gress passed the act of February 4, 1868, sus-
pending the further reduction OF the currency.
The torty-tour millions have ever been regard
ed as a reserve to be used only in case Of emer-
gency, such as has occurred Oh several occa-
sious, and must occur when from any cause
revenues suddenly fall below expenditures, and
such reserve is necessary because the frac-
tioual currency, amounting to fifty millions, is
redeemable in legal tenders on call.
1t may be said that such return of frac.
tional currency for redemption is impossible.
But let steps be taken for return to specie
hasis, and it will be found that silver will take
the place Of fractional currency as rapidly as it
can be supplied, aud when the premium on
gold reaches a sufficiently low point, with the
amount of United States notes to be issued
pprmanantlu Hyad uthin pronor li,p;to ~,