The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-04-28
THE PRESIDENTS POLICY.
AN EMBARGO ON THE FINANCE BILL
HE MUST KEEP no HIS RECORD.

WITHOUT HIS StGNATURE-IHE REASONS
SET FORTH IN HIS MESSAGE
WASHINGTON, ID. c., April 22.-The follow.
ing is the presidents veto message:
To the Senate of the United States:
Herewith return Senate bill No. 6l7,enti.
tied, "An act to fix the amount of United
States notes ard the circulation Of the
national banks, and for other purposes, u
without my approval. In doing so must
express my regret at not being able to give
my assent to a 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
ind sufficient arguments TO justify such as
sent, but unsuccessfully. Practically,
1t is question whether the mea-
sure under discussion would give an
additional dollar to the irredeemable
paper currency of the country or not, and
whether. by requiring three-fourths of the
reserves to be retained by the banks, and
prohibiting interest to be received on the
balance, it might not prove a contraction.
But the fact cannot be concealed, that, the
oretically, the bill increases the paper circu-
lation slOO,o00.0OO, less only the amount of
reserves restrained from circulation by the
second section. The measure has been sup
ported on the theory that it would give an
Increased circulation. 1t is fair inference,
therefore, that if, in practice, the measure
should fail to create the abundance of circu-
lation expected of it, the friends of the
would clamor for such imitation as would
give the expected relief. The theory,
in my belief is a departure from the true
principles of finance, of national interest, of
national obligations to creditors, Of con.
gressional promises, of party pledges on the
part of both political parties and of the per-
sonal views and promises made by me in
every annual message sent congress and in
each inaugural address In 1869 the follow
ing passage appeared: "Among the evils
growing out OF the rebellion and not referred
to is that of an irredeemable currency" II
is an evil which hope will receive the
most earnest attention. 1t is a duty and
one of the highest duties of the government
to secure to the citizen, medium of ex-
change of fixed, unvarying value. This inn
plies return TO a specie basis and no sub
stitute fer it can be devised. It should be
now and reached at the
earliest practicable moment consistent with
a fair regard to the interest of the
debtor class. Immediate resumption, if
practicable, would not be desirable. 1t
would compel the debtor class to pay be-
ycnd their contracts the premium on gold at
the date of their purchase, and would bring
bankruptcy and ruin to thousands. Fluctu-
atoms, however, in the paper value of the
measure of all values, of gold, is detrimen-
tai 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 is to
be the value of the currency to be paid and
received. 1 earnestly recommend to you
that such legislation as Will insure gradual
RETURN TO SPECIE PAYMENTS
and put an immediate stop to fluctuations
in the value of currency" 1 still adhere to
the views then expressed. AS early as De-
cember 4, 1865, the House of Representatives
passed a resolution by vote of 143 yeas to
s nays, concurring in the views of the secre-
tary of the treasuary in relation to the neces-
sity of a contraction of the currency with a
view to as early resumption of specie pay
ments, as the business interests of the
country would permit and pledging cooper
alive action to this end, as speedily as pos
sible- The first act passed by the forty first
congress, on the 18th day of March, 1869,
was as follows: "An act to strengthen the
public credit of the Uuited States; be it en-
acted, ETC., that, in order to remove
my doubt as to the purpose of the govern
nent to discharge all its obligations to the
public creditors, and to settle conflicting
questions and interpretations of the law by
virtue of which such obligations have been
it is hereby provided and de-
,lared that the faith of the United States is
'olemnly pledged to the payment in coin, or
Is equivalent, of all the obligations of the
United States, and of all the interest bearing
obligations, except in cases where the law
authorizing the issue of any such obligation
las expressly provided that the same may
De paid in lawful money, or in
,ther currency than gold and silver.
obligations not already due shall be redeem
ID or paid before maturity, unless at such
lines as the United States notes shall be
into coin at the option of the
holder, or unless at such time as the bonds
# the United States bearings lower rate of
interest than bonds to be redeemed can be
old at par in gold. And the United States
Ilso solemnly pledge its faith TO make pro-
vision at the earliest practicable period. This
Ict still remains as a continuing pledge of
he faith of the United States to make pro-
7ision at the earliest practicable
moment for the redemption of the
United States notes in coin. A declaration
in the act of June 25th, 1864, Gre
ted an obligation that the total amount of
United States notes issued. or to be issued,
hould never exceed four hundred millions
If dollars. The amount in actual circulation
was actually reduced to three hundred and
ifty-six millions of dollars, at which point
congress- passed the act of February 4th,
currency. The forty four millions have even
been regarded as a reserve to be Issued only
n case of an emergency such as has occur
ed on several occasions and must occur
when from any cause the revenues suddenly
all below the expenditures and
SUCH RESERVE Is NECESSARY
because the fractional currency, amounting
20 $50. DOC, 900, is redeemable in legal tender
IN call. 1t may be said that such a return
Of fractional currency for redemption is inn
possible, but let steps be taken for ret Urn
20 specie basis, and it will be found that
silver will take the place of fractional cur
rency as rapidly as it can be supplied when
The premium on gold reaches sufficient
low uoinl. With the amount of United
States notes to be issued permanently within
proper limits, and the treasury so
as to be able to re-
deem them in coin on demand, it
will then be safe to inaugurate system of
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