Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-04-23
W WASHINGTON.
THE FINANCIAL BILL VETOED.
PRESIDENT GRANTS MESSAGE

Washington, %, 2.35 z. NJ. President
Grant has vetoed the finance bill.
At 2.2O o'clock, the private Secretary of
the President delivered the message 70 the
Senate, which was read Immediately, at the
request of Senator Conkling.
The President returns the finance bill with
out his signature, and says that the fact can
not be concealed that the paper increases the
circulation of the country Sl00,00O,0o
The theory, in his belief, is a departure
from the true principles Of finance, and its
approval would be departure from every
message sent to Congress by him, on the sub
ject. He recommends earnestly such legis-
laton as will secure as speedily as practicable
return to specie payments, and refers to
the pledges of the government to make pro
visions at the earliest practical moment for
the redemption of United States notes in
coin.
The following is the Presidents veto mes.
sige:-
TO the Senate Of the United States
Herewith, | return the Senate bill, No. 6l1,
entitled IAN act to fix the amount of L. S.
notes and the circulation of National banks,
and for other purposes without my APPROX
al. In doing SO, must express my regret at
not being able to give any assent to meas
ure which has received sanction of the ma
jority of legislators chosen by the people to
make laws for their guidance, and l have
studiously sought to find sufficient arguments
to justify such assent, but unsuccessfully.
Practically, it is question whether the meas
ure under discussion would give an addition
al dollar to the irredeemable paper currency
of the country or not, and whether by reQur-
ing 81 of the reserves TO be retained by the
banks and prohibiting interest to be received
on the balance, it might not prove contrac-
ton. But the fact cannot be concealed that
theoretically the bill increases the paper
circulation 500, 000 900, less only the amt
of reserves restrai2ed from circulation by the
provision Of the second section. The meas
ure has been supported on the theory that it
would give increased circulation. 1t is fair
inference, therefore, that if in practice Con-
gress 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 initiation as would give
expected relief. The theory, in my belief is
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 and promises made
by me in every annual message sent to Con-
gress and in each inaugural address. In my
annual message to Congress, In Dec, 90,
the following passage appears: Among the
evils growing out of the rebellion and not yet
referred to is that of an irredeemable cur
rency. 1t is an evil which hope will re-
ceive your most earnest attention. 1t is
duty and one of the highest duties Of govern
ment to secure to citizens medium OF ex-
change Of fixed, unwave-ing value. This
implies a return to specie basis and no sub
situte for it can be devised. 1t should be
commenced new and reached at the earliest
practical moment consistent with fair re-
gard to the interest of the debtor class. I'M
mediate resumption, if practicable, would be
desired. 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. The
fluctuations, however, in paper value OF meas
ure of all values of gold is detrimental to the
Interests of trade. 1t makes the man of bust
ness an involuntary gambler, for in all sales
" here future payment is to be made both par
ties speculate as to what will be the value of
the currency to be paid and received.
earnestly recommend to you then such legis-
laton as will insure a gradual return to spe-
Gle payments and put an immediate stop to
fluctuations in the value Of the currency.
still adhere to the views then expressed. AS
early as Dec. 4, 1860, the House of Repre-
sentatives passed resolution by vote of
IN yeas to 6 nays concurring in the views OF
the Secretary of the Treasury, in relation to
the necessity of contracting of the currency,
with a view to as early resumption of spe-
Gle pay ments as the business interests of the
country will permit, and pledging co-opera-
tive action to this end as speedily as possible
The first act passed by the 4lst Congress, or
the 18th day Of March, 1869, was as follows
An act to strengthen the public credit Of the
L. S. Be it enacted, &C., That in order tc
remove any doubt as to the purpose of the
government to discharge all its obligations to
, the public creditors and TO settle conflicting
questions and interpretations OF the law by
which such obligations have been contracted
, i, is hereby provided and declared that the
faith of the L. S. is solemnly pledged TO the
payment in coin or its equivalent of all the
: obligations of the T. S. and of all the inter
. est bearing obligations, except in cases whe re
the law authorizing the issue Of any such OBJ
legations has expressly provided that the
same may be raid in lawful money or in any
o,hc. currency other than gold and silver
but none of said interest bearing obligations
, not already due shall be redeemed or pait
before maturity, unless at such times as thu
L. S. notes shall be convertible into coin a
the option of the holder, or unless at sucl
time the bonds of the L. S. bearing a lowe
rate of interest than the bonds to be redeem
= ed can be sold at par in coin, And also the
: L. S. solemnly pledges its faith to make pro
a visions at the earliest possible period tor tin
redemption of [. S. notes in coin" Thi
= act still remains as "A continuing pledge o
. the faith of the L. S. to make provision a
the earliest practicable moment for tie re
demption of U. S. notes in coin. A decla
ration contained in act of June 10Th, 1864
created an obligation that the total amount o
L. S. notes issued or to be issued shoul
never exceed 800, 100000. The amount il
actual circulation was actually reduced L
$3.50, 600 900, at which point Congress passe'
the act of Feb. 9Th, 1868, suspending tn
further reduction of the currency. The
millions have ever been regarded as re
- serve, to be used only in case OF emergency