Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1874-04-29

WASHINGTON, April %.
The following is the Presidents message
,-o+oino the Senate initiation bill
To the Senate of the United States:
Herein | return the Senate bill number
G17, entitled an . Act to TX the amount OF
I-niteJ States notes and the circulation of
ro+ioral banks, and for other purposes,
without nv approval" In doing so, | must
..ypress my regret ut not being able toI
.,;,,. my assent to n measure which has re-
T,ived the sanction of the majority OF the
legislators chosen by the people to make
Inv, for their guidance, and l have studi-
ouslv sought to find sufficient arguments
f., iustifv such assent, but unsucceSStuIly.
THE QUESTION STATED.
Practically it is Il question whether the
measure under discussion would give an
additional dollar to the irredeemable paper
If the country or not, and whether by re-
,,lirino three-fouths of the reserves to be
= retained bv the banks and prohibiting in
tere,t to be received on balances, 1t might
NOT prove a contraction. But the fact can
not he concealed that theoretically the bill
increases the paper circulation one hun
drnd millions of dollars, less only the
3nount of reserves restrained from clrcu-
l,tion bv the provisions of the second sec
tion The measure has been supported
ON the theory that it would give increased
circulation 1t is a fair inference tnefe-
fore. that if practicable should the measure
fail to create the abundance OF circulation
rXnccted of it. the friends of the measure,
naiticularIv those out of Congress-, would
lI,nor for such initiation as would give
fine expected relief. The theory, in my
belief, Is a
DEPARTURE FROM THE TRUE PRINCIPLES
OF FINANCE,
NATIONAL interest national obligations to
creditors. congressional promises, party
rIcd9cs on the part of both political par
tie~. and of the personal views and prom
i,t.- made by me in every annual message
.,ut to Congress, and in each inaugural
address. In my annual message to Con-
,re-s in December, 1869, the following
I.,sSages appear: Among the evils grow
iug ont of the rebellion and not yet legis-
lated upon. is that of an irredeemable cur
repcv. 1t is an evil which l hope will
receive your most earnest attention. 1t Is
"a duty and one of the
HIGHEST DUTIES OF THE GOVERNMENT
+o secure to the citizens Il medium Of ex-
change of fixed, unwavering value. This
itnulirs a return to a specie basis, and no
substitute for it can be devised, 1t should
be commenced now and reached at the
earliest practicable moment consistent with
a fair regard to the interest OF the debtor
class. Immediate resumption, If practl-
cable. 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
BANKRUPTCY AND RUIN To THOUSANDS.
Fluctuation in the paper value of the
measure of al values, gold, i, detrimental
TO the interest of trade. 1t makes the man
of business an involuntary gambler, for 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 and received. | earnestly recommend
Ia YOU. then, such legislation as will insure
a gradual return to specie payments, and
put an immediate stop to the fluctuations
In the value of the currency"
still adhere to the views then expressed.
As early as December 4th, 1860, the
House of Representatives passed resolu-
tion by Il vote of 144 yeas to nays, con-
curing in the views of the secretary of
the treasury in relation to the
NECESSITY OF THE CONTRACTION OF THE
CURRENCY,
with the view to as early resumption of
specie payments As the business interests
If the country will permit and pledgng
co-operativc action to this end As speedily
rs possible
The first act passed by the Forty-frst
CONGRESS. on the 18th day of March, 1869,
was a. follows: " An act to strengthen the
n9blic credit of the United States: Be it
enacted, etc. that in order to remove any
doubt as to the purpose of the government
to discharge all its obligations to the pub
lie creditors. and to settle conflicting ques-
tionS. and the Interpretation OF the law by
virtue of which such obligations have been
contracted. it is hereby provided and de
clared that
TIE FAITH OF THE UNITED STATES Is SOL
ElINLY PLEDGED
to the pavment IN coin or its equivalent,
of all 6blirations of the United States and
Of all interest-bearing obligations except
in cases where the law authorizing the is
sue of such obligations is expressly pro-
vided that the same may be paid in lawful
money. or in other currency than gold and
silver. but none of said interest-bearing
OBLIGATIONS not already due shall be re-
deemed OF paid before maturity, unless at
>uch times rs United States notes shall be
converted into coin ut the option of the
holder. or unless at the time bonds of the
United States bearing Il lower rate of in
tcrest than the bonds to be redeemed can
bee sold ut par in coin; the United States
also pledges It's faith to make provision at
the earliest practicable period for the re-
demption of United States notes in coin"
This act still remains as continuing the
pledge of the faith of the United States to
make provision ut the earliest practicable
moment for the redemption of United States
notes in coin.
The declaration contained in the act of
June 20ih, 1864, created an obligation that
the total amount of United States notes
issued OF to be issued should never exceed
four hundred millions of dollars. The
amount in actual circulation actually
reduced to three hundred and fifty-siX
millions Of dollars, ut which point Con-
@re>s passed the act of February 4th, 1868,
NuSpendlng further redemption of the cur
rencv.
TIE FORTY FOUR MILLION RESERVE.
F9rly-tour millions have since been re-
-1I'e'' ~ reserve. to be used only in case
"l emergency, such rs has occurred on
several occasions, and must occur when
from any cause the revenues suddenly fall
neioW the expenditures; and such reserve
l. necessary because the fractional currency
amounting to fifty millions is redeemable
IN legal tenders on call. 1t may be said
Ih'tt such return of the fractional curren-
cE Tor redemption is impossible, but let
Steps ne taken for a return to specie ba-
S'S and 1t will be found that silver will
take the place of fractional currency as
rapidly as 1t can be supplied.
FREE BANKING.
" hen the premium on gold reaches Il
sufficiently low point, with the amount OF
nItpI Sf.ltps To he iSSnaH