The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1874-04-30
" AsHINGIOA, ApFII z
To the Senate Of the United States:

WAsHINGToN, April D.
To the Senate Of the United States:
Herewith l return Senate bill No. /.
| 6IS, entitled "An act to fix the amount
of United States notes and circulation t
of National Banks and for other pur- /
poses" without my approval. In do
ing so / must express my regret at I
not being able to give my assent TO /
measure which has received the |
sanction of a majority of the Leglsla- /
ture chosen by the people to make I
I laws for their guidance, and have |
studiously sought to find sufficient ar |
4 gaments TO justify such assent, but /
1 unsuccessfully. Practically it is a /
louestion whether the measure under |
discussion would give an additional
dollar to the irredeemable paper cur |
rency of the country or not, and |
whether by requiring three-fourths of
the reserves to be retained by the |
4 banks, and prohibiting interest TO be |
received onathe balance it might not |
prove q contraction. But the fact can
not be concealed that Theoretically the |
bill increases the paper circulation one
hundred millions of dollars, less only
the amount of reserves retained from
circulation by the provisions of the
second section. The measure has been
supported on.the theory that it would
| give increased circulation. Ii is fair
| inference, therefore, that il in prac-
| tice the measure should fail to create
tsthe abundance. of circulation expected
4 the friends of the measure, particn-
| Iarly those oat of Congress, would
clamoF for such imitation as would
| give the expected relief. The theory,
L L
true principles of finance, national in
terest, national obligations to credit
ors, Congressional promises, party
/ pledges on the part Of both political
parties, and ofthe personal views and
4 Epromises made by me in every annual
message sent to Congress and in each
inaugural address. In my annual
message to Congress in December,
1869, the following passages appear:
/" Among the evils growing out of the
rebellion and not vet referred to is
u that of an irredeemable paper curren-
cy. tits an evil that l hope will re-
= cieye your most earnest attention. 1t
is duty and one of the highest duties
of the government TO secure to the
citizen a medium of exchange of
i fixed, unWaVerihg value. This inn
tpliesa return to specie basis, and no
substitute can be deyised 1t should
be commenced now and reached at
the earliest practicable moment con-
sistent with fair regard to the debtor
glass IHnn ediate- res nIption, if prac-
J, ticable, would not be desirable. 1t
J would compel the debtor class to pay
2 beyond their contracts the premium
on gold at the date of their purchase
land would bring bankruptcy and ruin
Z to thousands. Fluctuations, however
: in the paper value of the measure of
: all values, gold, is detrimental to the
J interest of trade. 1t makes the man
t iof business an Involuntary gambler,
for in all sales where future payment
s is to be made both parties speculate
I las to what will be the value of the
5 currency to be paid and received. /
earnestly recommend to you, then,
Z such legislation as will insure a gradu-
r al return to specie payments and put
!. an immediate stop to fluctuations in
o the value of the currency" / still adj
3 here to the views then expressed. AS
{ early as December Alb, 1865, the House
' of Representative passed aresolution
by vote of LA yeas to 6 nays con-
curing in the views of the Secretary
e of the Treasury in relation to the ne
/. cessity of q contraction of the curren-
CIV with view to the early Fesump-
/ ton of specie payments as the busi-
a ness interests of the country will per-
| nit, ard pledging cooperative action
}. to this end as speedily as possible
G The first Act passed by the Forty-frst
: Congress on the 18th of March, 1869,
: was as folloWs:-
e 'sAn act to strengthen the public
e credit of the United States Be it en-
r that oFIar IN 1auanuc
II any doubt as to the purpose of the
e Government to discharge its obliga-
tions to public creditors, and to COM
e Efiicting questions and interpretations
e lof the law by virtue of which such
e obligations have been contracted, it is
: hereby provided and declared that the
Z faithaof the United States is solemnly
2 pledged to the payment in coin or its
Q equivalent of all the obligations of
d the United States and of all the inter-
II est bearing obligations except in cases
o. lwhere the law authorizing the issue of
4 anv such obligations has expressly
D lproyided that the same may be paid
5 in lawful money, or in other currency
lthan gold and silver; but none OF said
i interest bearing obligations not al
: ready due shall be redeemed or paid
before maturity ysanless at such times
$ as United States notes shall be con-
: lRertible into coin at the option of the
81 holder, or unless at such time the
8 bonds of the United States bearing a
: Hover rate of interest than the bonds
J redeemed can be sold at par. in coin.
r And the United States also soleInnlv
! Epledges its faith to make provision at
! the earliest practicable period for the
Z redemption of the United States notes
: in coin" fa
This act still remains as a continu-
e ling pledge of the faith of the United
f | States to make provision at the earli-
+ est practicable moment for the re-
! dempfion of the United States notes
in coin. A declaration contained in
e The act of June 10Th, 1854, created an
s obligation that the total amount of
1 United States notes issued or to be
issued should never exceed four hum
: dred millions of dollars. The amount
81 of actual circulation was actually re-
& Educed to three hundred and flfty-siX
: millions of dollars, at which point
Congress passed the act February 3.
, sIS6S, suspending the further reduction
: llof the currency, The forty-four mill
e ions have ever been regarded as a re-
o serve to be used only in case Of emeP-
oencv. such as has occurred on several
I occasions, and must occur when from
: any cause the revenues suddenly fall
e below the expenditures and such a
i. reserve is necessary because the frac-
: fional currency, amounting to fifty
z millions, is sredeernable in legal tender
on call, 1t may be said that such a
e return of fractional currency for re-
4 demption is impossible, but let steps
u be taken for a return to specie basis
- /, hot cfl
! the place of fractional currency as
: raridlv as ii can be sunnlied. When