The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1874-04-29
VETO OF THE FINANCIAL BILL.
MESSAGE OF PRESIDENT GRANT.

WASHINGTON, ID. c., April 22.-
The following is the Presidents veto
message,
To The Senate Of the United STATES j;
Herewith | return Senate bill No.
CIT, entitled "An act to fix the
amount of United States notes and
the circulation Of national banks, and
for other purposes without my ap-
proval. In doing SO must express
my regret at not being able TO give
my assent to measure which has
received the sanction of a majority
of Legislators chosen by the people
to make laws for their guidance, and
| have studiously sought to find suf-
fcieut arguments to justify such as
sent, but unsuccessfully.
QUESTIONS RAISED BY TIE BILL.
Practicallyit is question whether
the measure under discussion would
give an additional dollar to irredeem-
able paper currency of the country or
not, and whether by requiring three
fourths of the reserves to be retained
by banks and prohibiting interests to
be received on the balance, it might
not prove a contraction. But the
fact cannot be concealed that, theo-
retically, the bill increases the paper
circulation one hundred millions of
dollars, less only the amount of re-
serve restrained from circulation by
the provision of the second section.
The measure has been supported on
the theory that it would ve,increas-
ed circulation; it is fair inference,
therefore, that, if in practice the meas
ure should fail to create the abund-
ance of circulation expected of it, the
friends of the measure, particularly
those out of Congress, would clamor
for such initiation as would give the
expected relief.
REASONS FOR THE VETO.
The theory, in my belief, is a de-
parture from the true principals of
finance, national interest, national
obligations to creditors, Congression-
al promises, party pledges on the
part of both political parties and
of the personal views and prom
ises made by me in every annual
message sent to Congress and in each
inaugural address.
EXTRACT FROM FORMER MESSAGE.
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 that of an irredeem-
able currency. 1t is an evil which |
hope will receive your most earnest
attention. 1t is a duty, and one of
the highest duties of the government,
to secure to the citizens a medium of
exchange of fixed, unvarying value.
This implies return to a specie
basis, and no substitute for it can be
devised. 1t should be commenced
now and reached at the earliest mo-
ment, consistent with a fair regard
to the interest of the debtor class.
Immediate resumption, if practicable,
would not be desirable. 1t would
COMPEL the debtor class to pay, be-
yond their contracts, the premium on
gold at the date of their purchase,
and would bring bankruptcy and ruin
to thousands. Fluctuations, howev-
er, in the paper value of the measure
of all values-gold-is detrimental
to the interest of trade. 1t makes
the man of business an involuntary
gambler; for, in all sales where future
payment is to be made, both parties
speculate as to what will be the value
of the currency to be paid out re-
ceived. | earnestly recommend to
you, then, such legislation as will in
sure a gradual return to specie pay
ment and put an immediate stop to
fluctuations in the value of the cur
rency.
CONTRACTION RESOLUTION OF THE
HOUSE.
| still adhere to the views then eX-
pressed As early as December 4,
1865, the House of Representatives
passed resolution, by vote of IA
yeas to 6 nays, concurring in the
views of the Secretary of the Treas
ury in relation to the necessity of q
contraction of the currency, with a
view to as early resumption of spe-
Gle payment as the business interests
of the country will permit, and pledg-
ing cooperative action to this, and as
speedily as possible.
FIRST ACT OF FoRTY-FIRsT CONGRESS.
The first act passed by the Forty
first Congress, on the 18th day of
March, 1869, was as follows:
"An act TO strengthen the public credit
Of the United States:
"Be 1t enacted, DC, That, in order
to remove any doubt as to the pur-
pose of the government to discharge
all its obligations. to the public credi-
tors, and to settle conflicting ques-
lions and Interpretation of the law
by virtue of which such obligations
have been contracted, it is hereby
provided and declared that the faith
of the United States is solemnly
pledged to the payment in coin, or its
equivalent, of all the obligations of
the United States and of all the in
terest bearing obligations, except in
cases where the law authorizing the
issue of any such obligations has ex-
pressly provided that the same may
be paid in lawful money or in other
currency than gold and silver; but
none of the said interest bearing OBJ
legations not already due shall be re-
deemed or paid before maturity, un-
less at such times as the United States
notes shall be convertible into coin at
the option of the holders, or unless
at such time bonds of the United
States, bearing lower rate of inter-
est than the bonds to be redeemed,
can be sold at par in coin; and the
United States solemnly pledges its
faith to make provision at the earliest
practicable period for the redemption
Of United States notes ih coin"
FAITH OF THE COUNTRY PLEDGED.