The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1874-05-07
The Veto Message.

The following is the Presidents mes
sage vetoing the Senate Currency bill:
To the Senate Of the United States:
Herewith return Senate bill No. 617, en-
titled " An act to fix the amount of United
States notes and the circulation of National
Banks, and for other purposes" without
my regret at not being able to give my
assent to measure which has re-
ceived the sanction Of q majority of the legis-
lators chosen by the people to make laws for
their guidance, and I have studiously sought
to find sufficient arguments to justify such
assent, but unsuccessfully. Practically it is Q
sion would give an additional dollar to the IT.
redeemaele paper currency of the country or
not, and whether, by requiring three -f0urths
of the reserves to be retained by the banks
and prohibiting interest to be received on
the balance, it might not prove contrac-
ten. But the fact cannot he concealed
that, theoretically, the bill increases the paper
circulation $100, COZ, 900, less only the amount
of reserves restrained from circulation by the
provisions of the second section. The meas
ure has been supported on the theory that 1t
would give increased circulation. It is 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 imitation as would give
the expected relief. The theory, in my belief,
Is departure from the true principles of
finance, national interest, Lational obligations
to creditors, Congressional promises, party
pledges on the part Of both political parties,
and from the personal views and promises made
gress, and in each inaugural address.
In my annual message to Congress in De-
cember, 1869, the following passage appears:
Among the evils growing out of the rebellion,
and not yet referred to, Is that Of rredeemable
your most earnest attention. It Is duty, and one
OF the highest duties Of the Government, to se.
cure to the citizen medium Of exchange Of fixed,
specie basis, and no substitute for 1t can be de-
vised. 1t should be commenced Tow, and reached
At the earliest practicable moment consistent with
:r to the e the debtor
would not Be desirable. It would com.
dSf class s.t t.
sands. Fluctuations, however, i'm the paper value
to the interest Of trade. It makes the man Of bust
where FUTURE Ss s p.sss
speculate as to what will be the value Of the cur
lency to be paid and received. Earnestly recon-
: gradual return to specie peymspts and put an
imlneaiate stop to the fluctuations In the value 70
I still adhere to the views then expressed.
A. early as Dec. 4, 1865, the House Of Repre-
sentatives passed resolution, by vote Of IA
yeas to nays, concurring in the views of the
Secretary Of the Treasury in relation to the
necessity Of contraction Of the currency with
view to Is early resumption Of specie pay
ments as the business interests Of the country
win permit, and pledging cooperative action
act passed by the Forty first Congress, on the
18th day of March, 1869, was as follows:
An Act to Strengthen the Pubic Credit Of the
United States: -'1.'Tr
Be u enacted, ETC., That, In order to remove any
Charge 4. il to he
and to settle conflicting questions and inte1preta
lions Of the law By virtue Of which such obliga.
and declared that The faith Of the United States Is
solemnly pledged to the payment in coin, Or Its
equivalent Of oil the obligations Of the United
States, and Of al the interest bearing obliga-
" provided that the came be paid I'm
lawful money, or other currency. than gold and
lions not already due shall be redeemed or paid
before maturity unless at such times ~ the United
States notes shal be convertible into coin ct the
Of the United States bearing lower rate Of inter
est than the bonds to be redeemed can be sold ct
par in coin; and the United States also solemnly
fos Uad
States notes In coin. 4-- e*gs.
This act still remains q continuing pledge
Of the United States to make provision OF the
earliest practicable moment for the redemp-
ton Of the United States notes in coin. A
declaration contained in the act OF June 20,
1854, created an obligation that the total
amount Of United States notes issued or to be
issued should never exceed $4OO, OOO, 900. The
amount in actual circulation was actually re-
duced to 4S56, 00O. 600. at which point Con-
gress passed the act Of Feb. 4, 1868, suspend
Ing the further reduction Of the currency.
reserve to be used only In case OF an emer-
gency such a. has occurred on several occa-
sions, and must occur when, from any cause,
the revenues suddenly fall below the expendi-
lures, and such reserve is necessary because
the fractional currency, amounting to S5O,-
600, 600, Is redeemable In legal tenders on call.
It may be said that such return Of fr,ctiona!
let steps be taken Tor return to specie
basis and It will he found that silver will
take the place Of the fractional currency -
rapidly % 1t can be supplied. When the
premium on gold reaches q Sufficiently low
point, with the amount Of United States notes
to be issued permanently fixed within proper
limits, and the Treasury 20 strengt hened - to
be able to redeem them In coin on demand, It
will be then safe to inaugurate system Of
free banking, with such provisions as to make
the compulsory redemption Of circulating
notes Of banks in coin or United States notes,
themselves redeemable and made equivalent
to coin. As measure preparatory to free
banking, q for placing the Govemment
coin It the earliest practicable moment,
the revenues Of the country should be in
creased % - TO pay the current expenses,
provide for the sinking fund required by law,
and also surplus to Be retained in the Treas