The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1874-04-30
The National Finances.

through Congress by combination of South
ern and Western members, and most bitterly
opposed by the capitalists of the Eastern
States. The measure was held under consider
asioehn for an unusual length of time, and there
was great doubt as to the position likely to be
assumed By the President, whose views on
finance. were not clearly and extensively de-
fined hitherto. The veto gives great satisfac-
ton to the Eastern men, and has created a
corresponding disgust among the leading Re
publicans of the West, who denounce the ad-
.ministration in vigorous terms. The rupture
thereby produced is likely to hasten the dis
memberment of the Republican party, which
has always touched lightly upon financial
questions, since the discordant elements within
that party could not be reconciled to any def
mite policy. The rock upon which they split
has been srgn4against, and the position now
assumed, By President Grant will likely eventu-
ate in dissolution of political parties, where
old issues will be forgotten and ignored, and
a fresh alignment upon vital and important
questions will take place. In all tliis will be
found genuine relief and succor to the suffer-
ing South, whose interests will naturally af6li-
ate with the great West, and these sections
will begin to shape the policy cf the govern
ment. Prudence, sagacity and moderation will
secure its control to the West and South at
this time, and an alliance based upon sound
principles and mutual interests will fashion
the destiny Of this country for an indefinite
period. ,1. ,t.: o.i.es.
The veto message of President Grant is re-
markable for its terseness and plainness, and
the absence of any rhetorical flourish indicates
the authorship as solely belonging to the Pres
ident. He expresses regret at not being able
to approve this particular measure, which 're-
ceived the sanction Of a majority of the leg
islators chosen by the people to make laws for
their guidance" and says:
I have studionsly sought to find sufficient
arguments to Justify such assent, but unsuc-
cessfalIy-. Practically it is a question whether
The measure 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 q contraction but the fact cannot be
concealed that, theoretically, the bill increases
the paper circulation one hundred million dol
lars, less only the amount of reserve restrained
from circulation by the provision of the second
section. The measure has been supported on
the theory that it would give increased circula-
tion. 1t is a fair inference, therefore, that if
in practice the measure should fail to create
the abundance of circulation expected of it,
the friends of the measure, particularly those
out of Congress, would clamor for such infa-
ton as would give the 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 pledges on the part of both
political parties, and of the personal views
ssst to Congress, and in each inaugural ad-
dress.
| He then cites recommendation contained
| in his FIRST message to Congress in December,
1869, where he advised gradual return to
specie payment and prudent contraction of
| the cnrrency, declaring that he still adheres to
the views then expressed. Next, the President
quotes the action Of the House of Representa-
tives in december, 1866, where similar course
was solemnly pledged by an almost unanimous
vote, which he follows with an entire recital Of
the first act passed by Congress after he went
into Office in March, 1869, where that body
declared that the faith of the United States is
solemnly pledged ''to make provision, at the
earliest practicable moment, for the redemption
of the United States notes in COIN" The
! President describes this act "as q continuing
pledge of the faith of the United States"
against any scheme for imitation. Further
more, in order to strengthen, his position, the
President shows that Congress in 1864 entered
into an sgreement with the national creditors
that the total amount of the United States
notes should never exceed S4GO,000000, and
that the amount in actual circulation was re-
duced to 1856, ,oOo,0 900, at which point Congress
passed an act suspending further reduction
of the currency. He then goes on to state his
exact position in regard to the measure under
consideration, and the reasons for interposing
the executive veto, which we quote in full:
The forty-four millions have ever been re-
garded as reserve, to be used only in case OF
emergency, such as has occurred on several
occasions, and must occur whenever receipts
suddenly fall below expenditures and such a
reserve is necessary, because the fractional cur
rency, amounting to fifty millions, is redeema-
BILE In legal-tenders. 1t may be said that such
return Of factional currency for redemption
is impossible, but steps may be taken for re-
turn to specie basis, and it will be found that
silver will take the place of fractional currency
as rapidly as it can be supplied when the pre-
MUM in gold reaches sufficiently low point.
issued, permanently fixed within proper limits,
and the treasury so strengthened as to be able
to redeem them in coin on demand, it will then
be safe to inaugurate system Of free banking,