Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1874-05-01
MisccI!aueons.
81.
TIE VETO sFESSAGE.

in full:
Herewith ! return Senate bill No. G17,
entitled An act 70 fix the amount of
United States uotes and the circulation Of
national banks, and for other purposes, -
without my approval. In doing 50 l must
express my regret at not Oeing able to give
my assent to 4 measure which has received
the sanction of a majority Of the legislators
chosen Dy the people to make laws for their
guidance, aud | have studously sought TO
find sufficient arguments TO justify such as
sent, bus unsuccesSfully. Practically, it is
question whether the measure under discus
sion would give an additional dollar to the
irredeenable paper currency Of the country
or not, and whether by requiring three
f0urths of the reserve 10 I've retained by the
banks and prohibiting interest 70 be receiy-
ed on the balance, it might not prove a
contraction bus the fact cannot he con-
cealed that, Theoretically, The bill increases
tie paper circulation one hundred millions
Of dollars. less only he amount Of reserves
restrained from circulation by the proyi-
sion of the second section. The measure
has been supported on the theory that it
would give increased circulation. 1t is a
fair inference, therefore, that, if in prac-
tce the measure should fail to create the
abundance Of circulation expected OF 1t, the
friends Of the measure, particularly those
out Of Congress, would camor for such
imitation as would give the expected relief.
The theOFy, in my belief, was a depar-
ture from true principles Of finance, nation
al interest. national obligations TO cred!-
tors, Congressional promises, party pledges
on the part of both political parties, and of
personal views and promises made by me
in every annual message sent 10 Congress.
and in each Inaugural address. In my an
nual message to Congress in December.
1863, the following passages appear:
Among the evils growing ont of the re-
beilion, and not yet referred to, is that of
an irredecn.able currency. Il is an evil
which l hope will receive your most earn-
est attention. Itis a duty, ouc of the high
est duties of Government, 10 secure TO the
citizen a medium Of exchange of fixed un-
varying value. This implies n Ieturn to
the specie basis, and no substitute for it can
br desired. 1t should be commenced now
and reached ai the earliest practical mo-
meut consistent with a fair regard TO the
interests of the debtor class Immediate
resumption, if practicable, would not be de-
sirable. 1t would compel the debtor class
to pay beyond tEeir contracts the premium
on gold at the date of their.purchase, and
would bring bankruptcy and ruin TO thou
sands. Fluctuations, however, IN the pa
per value Of the measure of all values, gold,
is detrimental to the interests OF trade. 1t
makes the man Of business an involuntary
gambler, for in all sales where future pay
ment is to be made, both parties speculate
as to what will be the value of the currency
to be Taid and received. earnestly recon-
mend To YOU, then, such legislation as will
insure gradual return to specie payments,
and put an immediate stop TO fluctuations
in the value of currency
still adhere to the views then expressed.
As early Is. December i, 1876, iue ii5ust
OF Representatives passed 4 resolution. by
a vote of l44 yeas to nays, concurring in
the views of the Secretary of the Treasury
in relation to the necessity Of a contraction
OF the currency with a view to as early
resumption Of specie payments rs the busi-
ness interets of the country will permit,
and plcdgiEg cooperative action to this
end rs speedily as possible. The first act
passed by the Forty-frst Congress on the
18th day of March, 1869, was as follows:
An act 10 strengthen the public credit of
the United States.
BE fEndcted, dc, That in order 70 remove
any doubt as to the purpose Of the govern
ment 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 contract
ed, it is hereby provided and declared tina!
the faith Of the United States is solemnly
pledged to the payment in coin, or Its equi-
yalent. of ali obligations of the United
States, and of all the INTEREST," bearing
Obligations, except in cases where the
law authorizing the issue Of any such
obligations has. expressly provided that
the came may be paid in lawful money,
or in other currency than gold and silver
but none Of the said interest bearing ob!i-
cations not already due shall be redeemed
or paid before maturity, unless at such
times the United States notes shall be con-
vcrtible into coin at the option Of the hol-
der, or unless at such time bonds the
United States bearing 4 lower rate Of inte-
rest than the bonds to be- redeemed can be
sold at par in coiu. And the United
States also solemnly pledges its faith 10
maze provision, at the earliest practicable
period, fyr the redemption of the United
States notes in coin.
LDtS dCL SIli ISludIDS NS COuiiuulu8
pledge of the faith of the United States
to make provision at the earliest practical
bic moment for the redemption of the
United States notes in coin. \ declara-
tien contained in the act of June 80, 1864,
created an obligation that the total amount
of United States notes issued or to be is-
sued should never exceed four hundred
millions of dollars. The amount in actual
circulation was actually reduced to three
hundred and tifty-siX millions of dollars ut
which point Congress passed the act of Fe-
bruary 4, 1868, suspeuding the reduction of
the currency. The fOrty-four millions
have ever been regarded as a reserve to be
used only in case of emergency, such as
has occurred on several occasions, and
must occur when from any cause revenues
suddenly fall below expenditures, and such