The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1874-04-29
VETO OF THE FINANCE BILL.

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The most important measure OF
1.-The past week has been the veto of
1.-THE Congressional Finance bill, by
president Grant. The strong reason
assigned by tho President in his mes
sago, is that theoretically at least, the
bill adds one hundred million dollars
to the papor circulation Of the coun'
try, and that in his opinion It is de-
parturc from true principles, ma
tional interest, national obligations to
creditors, Congressional promises,
party pledges, and the viows previ-
ously expressed by himself in every
annual message, and inaugural ad-
dress. lie refers to various acts and
resolutions of Congress, which pledge
the public faith and credit for tho re-
demption of the obligations of the
Government. He says:
"A declaration contained in the oct
of June 30th, 1864, created an obli-
CATION that the total amount of Uni
! ted States notes, issued or to he issu-
cd, should never exceed four hundred
million of dollars. Tho amount in
actual circulation was actually re-
duced to three hundred and filty-six
millions of dollars, at which point
Congress passed tho act Of February
9Th, 1868, suspending the further re-
duction Of the currency. The A, ,OOO,-
coo have ever been regarded as re-
serve, to be used in case Of emergency
such as has occurred on several occa-
sions, and must occur whenever re-
ceipts suddenly fall below expcndi-
lures; and such reserve is ncccssa-
ry, because tho fractional currency,
amounting to fifty millions, is redeem
able in lcgal-tcnders. 1t may be said
that such return Of fractional cur
rency for redemption is impossible,
but steps may be taken for q return
to specie basis, and it will be found
that silver will take tho place Of trac-
tional currency as rapidly as it can
be supplied when the premium in
gold reaches a sufficiently low point.
With the amount Of United States
notes to be issued, permanently fixed
within proper limits, and the trcasu-
ry so strengthened as to be able to re-
deem them in coin on demand, it will
then be safe to inaugurate system
of free banking, with such provisions
as to make compulsory redemption Of
the circulating notes of the banks in
coin or in United States notes, them.
selves rcdccmable and madc equivo.
lent to coin. AS a measure prepara-
tory to free banking or for placing the
government in a condition to redeem
it's notes in coin at tho earliest prac-
ticable moment, the revenue Of the
country should be increased so as to
pay current expenses, provide for
the sinking fund required by law, and
also a surplus to be retained in the
treasury in gold. am not a believer
in any artificial method Of making
paper money equal to coin when the
coin is not owned or held ready to re-
deem the promises to pay; for paper
money is nothing more than promises
to pay. It is valuable exactly inI
proportion to the amount of coin that
it can be converted into. While coin
is not used as q circulating medium,
or the currency Of the country isl
not convertible into it at par, 1t be-
comes an article of commerce as much
as any other product, and the surplus
will seek a foreign market as will any
other surplus: Tho balance of trade
has nothing to do with the question.
Duties on. imports boing required in
coin creates o limited demand for
gold. About enough to satisfy that
demand remains in the country. TO
increase the supply see no way
open except tho government boarding
through the means above given, and
possibly by requiring tho national
banks to aid. 1t is claimed by the
advocates Of the measure herewith
returned, that there is al unequal
OF the banking capital of
tho country. l was disposed to give
great weight to this view Of the qucs-
ton at first, but, on reflection, it will
be remembered, that there still re-
mains 100000 of authorized bank
notes in circulation assigned to States
having less than their quota not yet
taken. In addition to this, the States
having less than their quota Of bank
circulation have the option Of twen-
ty-fve millions more, to be taken
from those States having moro than
their proportion. When this is all
taken up, or when specie payments
are fully restored, or are in rapid pro-
cess Of restoration, it will be time to
consider the question Of "more cur
rcncy."
The bill which has boon vetoed is
ono which received tho earnest sup
port Of leading Southern statesmen,
rs a measure which was needed cs-
oocially by thoir section, to supply
.he want of banking facilities. We
suppose that some compensation will
DC given in some scheme to provide
or tho distribution of tho curren-
" Of the country, SO rs 10 give the
South and Wess their due proper
ion, and We see that various meas
Tres looking to this end havo been
Introduced into Congress. This may
effect the desired end without array
ng the hostility which WAS provoked ,