Port Tobacco times, and Charles County advertiser. (Port Tobacco, Md.) 1845-1898, 1874-05-01
The Veto Message.
70 the Senate of the United States

! titled IAN act to fix the amount OF United
States notes and the circulation Of national
banks, and for other purpose, without my ap-
proTal. In doing so must express my regret
at not being able to give my assent to measure
(which has received the sanction of majority of
the legislators chosen by the people to make
laws for their guidance, and have studiously
| sought to find sufficient arguments to justify
such assent but unsuccessfully. Practically,
! 1t Is Il question whether the measure under dis
cussion would give an additional dollar to the
| irredeemahle paper currency of the country or
not, and whether bv requiring three-tourths OF
| the reserves to be retained by the banks, and
iprohlhltlng interest to be received on the bal
ance, 1t might not prove contraction. But
| the fact cannot be concealed that theoretically
| the bill increases the paper circulation $780,
IUOO, 600, less only the amount OF reserves re-
strained from circulation by the provisions
OF the second section. The measure has been
supported on the theory that it would give in
creased circulation. II is fair inference, there
fore, that If i'll practice the measure should fail
10 create the abundance OF circulation expected
|of II the friends OF the measure, particularly
those out of Congress- would camor for such
initiation as would give the expected relief. The
theory, in my belief, is departure from the
true principles of finance, national interest ma
| uoual obligations to creditors, Congressional
promises, party pledges on the part OF both po-
| litical parties, and of the personal views and
promises made by me in every annual message
sent to Congress and in each inaugural address.
| In my annual message to Congress IN December,
| 500, the following passages appear Among
! the evils growing out OF the rebellion and not
| yet referred TO is that OF irrcdeemable cur
rency. 1t is an evil which hope will receive
| your most earnest attention. 1t Is duty, and
one Of the highest duties of the Government 10
| secure to the citizen medium of exchange of
| fixed, unvaryiug value This implies return
TO specie basis, and no substitute tor ii can he
devised. Il should bccommt need now and reach
| cd at the earliest practicable moment. consist
! cnt with u fair regard to the interest Of the
debtor class Immediate resumption, II Prac-
uyahie, would not be desirable. Itwoutd COM
| pei the debtor class 10 pay hey ond their con-
tract the premium on gold AZ the date OF their
purchase and would bring bankruptcy aud
| ruin 10 thousands Fluctuations, however, III
| the paper value ot the measure OF all values
Eoli-ls detrimental 10 the interest OF trade. II
| ulanes the man OF business an luHo,un;ar! gam
bier for in all sales whrre future pay mcnt is 10
| be made both parties speculate ~ Ia hat Will
| he the value u the currency to be paid and It
CClvcd. | earnestly recommend to You. then.
such legislation as Vii. insure gradual return
| TO specie payments, and pat an immediate stop
| 10 fluctuations IN the value of currency. l
still adhere 10 the views then expressed. A.
early as December :, 1865. the House OF Repre-
scnfatlvcs passed Il resolution ~ = vote OF -
ye>Gs To nays, coHcuriug in the views OF the
Secretary of the Treasury IN relation TO the ne
,c>sIiy o: a contraction % the currency with a
view To As early a resumption % specie payment,
As the business interests Of the country viii per
NIT, and plcdSin- cooperative action TO this
end speedily a. possible. The hrst act pass
ed by the Foriy-irst Congress on the eighteenth
day Oi March. l>t9. WAS A. follows: An ac;
to strengthen the public credit of the United
States lie 1t il enacted. sc. ihat ia order TO
remove any doubt as TO the purpose OF the Gov
cTnmcnt 10 discharge all its obligations 10 the
public creditors. and 10 settle conflicting ques-
tious aud interpretations OF the law b. viz
tue Of which such obligations have been CON
irac;.d, It is hereby provided and declared that
The faith OF the United States Is soemnIy pleds-
ell TO the payment In coin or Its equivalent OF
a. .----~<xrioys -@.s+s~-44-><-is- saa
all the intcrcst-bearing obligations. except IN
cases " here the law authorizing the issue OF any
such obligations has expressly provided that
the same NAV X paid IN lawful money, or III
other currency than gold and silver; but none
Of >aii utcrcsi-hcariug obli Eatious not already
due shall! bc redeemed or paid before maturity
uu.,>< At such times - the United States notes
,halI lc CuuvcrtihI. into coin 81 the option OF
The holder. or unless AT such time bonds OF the
| nltCa States bearing a lower rate OF interest
than aonls 70 ne redeemed can lie sold At par
IN co.u. and the Uullcd States also soicmniH
pledge lis faith 10 make provision n the eari
c-t practicable period tor the redemption OF
[ uitsd States notes in coin.
This act sil.I remains a. = continuing pledge
Of the faith Of the United States 10 make proysS-
| ION at The earliest practicable moment for the
redemption Of the Unite, States notes IN com.
y declaration contained in the act OF June 20
| -tf. reIicd an obligation that iac total amount
of Ju.'ei States notes issued. or TO he issued,
should never cNccrd 500 0uo GOO. The amount
IN as9aa! circulation Was actually reduced to
$3.50 600 600 at which point Congress passed
the act 81 February :, l>"s SnsPending the
further reduction Of the currency. The >ii,-
600, GOO have been regarded r. reserve L" lie
| used only in case Of al cIner -ency, such AS mas
occurred on several occasions and must occur
" hen from any cause revenues suddenly tai! De
lpU Expenditures. and such reserve IS ntcaS-
~ar, btcaus. the fractional currency, amount
lag 10 so. 600 Gou. = rcdcemahtc IN legal ten
| der ou call 1t may be said that such return
nf fractional currency for redemption Is lmPo>si-
tlv but let steps be taken for return 10 Spe-
| clc basis aud il will hc found that silver will
take the place OF fractional currency As rapidly
| Is it can he supplied. When the premium on
gold reaches sufficiently low point with the
amount of United States notes 10 be issued per
lmauently within proper limits, and the Ireasu-
~ 80 streng thcned as TO I've able To redeem them
| i'll coin on demand it Will then be safe to in
augurate system of free banking, with such
Iproysions rs TO make compulsory redemption
of circulating notes of banks in coin or United
States notes themselves redeemable and made
equivalent to coin, as a measure preparatory 10
| free banking, or for placing the Government in
| n condition to redeem its notes i'll coin at the
earliest practicable moment. The revenues OF
the country should be increased so as TO pay
| the current expenses, provide for the sinking
fund required by law, and also a surplus TO be
retained in the Treasury in gold | am not a
| believer in any artificial method of making pa
per money equal to coin when coin is not own
| ed or held ready to redeem the promises TO
the amount of coin that it can be converted into.
W lille coin is not used as a circulating medium,
| or the currency of the country is not converu-
bic into it AT par, it becomes an article OF COM
mcrce as much rs any other product. The sur
| plus will seek foreign market. as Will any
other surplus. The balance of trade has moth
| ing to do with the question. The duties on I'M
| ports being required in coin, create limited
demand for gold. and about enough to satisfy
| that demand remains in the country. 10 IN
crease this supply see no way open but oy the
| Government boarding through the means above
| given, and possibly by requiring the national
| banks to aid 1t is claimed by the advocates
of the measure herewith returned that there is
an unequal distribution of the banking capital
of the country. | was disposed to give great
weight to this view of the question at hrst bu1