Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1874-04-30

Message of President Grant Vetoing the
Senate Finance Bill.

VETOs
Message of President Grant Vetoing the
senate Finance Bill.
To the Senate of the United States:
Herewith return Senate bill No. Git, enti-
tied 90 An act to fix the amount of United
States notes and the circulation OF national
banks. and for other purpose" without APP
proval. in doing So must express my re-
/ greet at u Ut being able to give my assent to a
majority of legislators chosen b. the people
to make laws for their guidance. and have
stHdiously sought to find sufficient arguments
| to Justify such assent. but unsuceessfully.
Practically, it is a question whether the meas
ure under discussion would give an additional
dollar to the irredeemable paper currency of
the country or not, and whether, by requiring
three-fourths of the reserves to be retained by
banks and prohibiting interest to be received
| on the balance, it might not prove a contrac-
ton. But the fact cannot be concealed that,
Theoretically the bill increases the PAPER cir
| culaton 500, 600, 900, less only the amount of
reserves restrained from circulation by the
provisions of the second section. The meas
ure has been suppsorted on the theory that it
would give increased circulation. 1t IS fair
inference, therefore, that, if in practice the
measure should fail to create the abundance
! of circulation expected of it, the fnends of
the measure, particularly those out of Con-
gress, would clamor for such imitation as would
v.
belief is a departure from the true principles
of finance, national interest, national obliga-
tons to creditors, Congressional promises,
party pledges on the part of both the political
parties, and of the personal views and prom
ises made by me in every annual message
sent to Congress, and In my inaugural ad
dress.
In nv annual message to Congress in De-
cember, 1869. the following passages appear
Among the evils growing out of the re-
bellion, and not yet referred TO, is that of an
irredeemsble currency. 1t Is an evil which L
! hope will receive your most earnest attention.
/ 1t is a duty. and enc of the highest duties, of
| the Government, to secure to the citizen 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
| practicable moment consistent with q fair re-
| gard to the interests of the debtor class. I'm
mediate resumption, if practicable, would not
be desirable. 1t would compel the debtor class
/ to pay, beyond their contracts. the premium
on gold at the date Of their purchases, and
would bring bankruptcy and ruin to thou
sands. Punctuation, however, 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 i'll all sales where future payment is to be
made, both parties speculate to what will
! be tie value of the currency to be paid and
received. earnestly recommend TO you, then,
such legislation as will insure 8 gradual return
! to specie payment, and put an immediate stop
to the fluctuations of the value of currency"
/ still adhere to the view then expressed.
AS early as Dec. f. 1865, the House of Repre-
sentatives passed resolution by a vote of IA
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 view to as early resuml tion of spe-
Gle payments as the business interests of the
country will permit, and pledging cooperative
action TO this end as speedily as possible. The
first act passed by the Forty-frst Congress,
on the 18th day of March, 1869, was fol-
lows:
United States.
Be ii enacted ETC., That, in order to remove
any doubt as to the purpose of the Govern
inent to discharge all its obligations to the
public creditor, and to settle conflicting ques-
tons and interpretations of the law in virtue
of which such obligations have been contract
ed, 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 interest-bearing obligations, except in
cases where the law authorizing the issue Of
any such obligations has expressly provided
other currency than gold and silver out none
of sail Understanding obligations not al
ready due shall be redeemed or paid
before maturity. unless at such time notes
of the United States shall be convertible into
coin at the option of the holder. or
unless at such time bonds of the United States
bearing q lower rate of interest than the
BONDS to be redeemed can be sold at par in
coin and the United States also solemnly
pledges it's faith to make provision at the ear
lest practicable period for the redemption Of
United States notes in CON-"
This act still remains a continuing pledge
of the United States to make provision at the
earliest practicable moment for the redemp-
ton of the United States notes in coin. A de-
claration contained in the act of June 20.
1864, created an obligation that the total
amount OF United States notes issued, or to
be issued, should never exceed $500, 000, 000
The amount in actual cir eulation was actually
reduced to 1856, 000, 900, at which point Con-
gress passed the act of Feb. 4, 1868, suspend
ing the further reduction Of the currency.
The S44, GOO, 600 have ever been regarded
q reserve to be used only in case of an
emergency, such as has occurred on several
occasions, and must occur when, from any
cause the revenues suddenly fall below the
expenditures; and such a reserve is necessary
because the fractional currency, amounting
to $50 900. 600, is redeemabe in legal-tenders
on call. 1t may be said that such a return
Vi iIdCSlOndi III iCOCnpbiOu 10 lul-
probable, but let steps be taken for a re-
turn to q specie basis, and it Will be found
that silver will take the place of fractional
currency as rapidly as it can be supplied.
When the premium gold reaches
sufficiently low point, with the amount
of United States notes to be issued
permanently within proper limits, and the
Treasury so strengthened 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 q measure preparatory to free
banking, or for placing the Government in
position to redeem it's notes in coin at the
earliest practicable moment, the revenues of
the country should be increased so as to pay
the current expenses, provide for the sink
| ing fund required by law, and also surplus
\ to be retained in Tie Treasury in gold (