The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1874-05-01
NATIONAL FINANCES.


past eleven until nearly two, on the 22d,
and finances were the single subject of
discussion. The following presidential
message shows the result
To the Senate Of the United States:
Herewith I return the senate bill
number GIT, entitled can act to fix the
amount of United States notes and cir
culation OF national banks, and for 9th
er purposes, without my approval.
In doing so, must express my regret
at not being able to give my assent to a
measure which has received the sane
ton of majority of the legislators
chosen by the people to make the laws
for their guidance, and have studious-
ly sought to find sufficient arguments
to Justify such assent, but unsuccess-
fully. Practically it is a question
whether the measure under discussion
would give an additional dollar TO the
irredeemable paper currency of the
country or not; and whether by requir-
ing three-fourths of the reserves to be
retained by the banks, and prohibiting
interest TO be received on the balance,
it might not prove to be contraction.
But the fact cannot be concealed that
theoretically the bill increases the pa
per circulation one hundred million of
dollars, less only the amount of reserves
restrained from circlation by the pro-
visions of tho second section.
The measure has been supported on
the theory that it would give increased
circulation 1t is fair inference, there
fore, that if in practice the measure
should fail to create the abundance of
circulation expected of it, the friends
of the measure, particularly those out
of congress, would clamor for such in
fation as would give the expected re-
lief The theory, in my belief, is de-
parture from the true principles of fl
nance, national interest, national obi
cations to creditors, congressional prom
Uses, party pledges on the part of both
political parties, and of the personal
views and promises made by me in eve
ry annual message sent to congress and
in each inaugural address. In my annu-
al message to congress in December,
1869, the following passage appears
Among the evils growing out of the
rebellion and not yet referred to, is that
of an irredeemable currency. It is an
evil which I hope will receive your
most earnest attention. It is your duty,
and one of the highest duties of the
government, to secure the citizen a me-
dunn of exchange of fixed, unvarying
value. This implies return to a specie
basis and no substitute for it can be de-
vised. It should : e commenced now
and reached at the earliest practicable
moment consistent with fair regard to
the interest of the debtor class. Imme-
| date resumption if practicable would
| not be desirable. It would compel the
debtor class to pay beyond their con-
tracts the premium of gold at the date
| of their purchase, and would bring
| bankruptcy aud ruin to thousands.
| Fluctuations, however, in the paper
value of the measure of all values,
| gold, is detrimental to the interests Of
e-e<le. It 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. /
earnestly recommend to you then, such
legislation as will insure a gradual re-
| turn to specie payments and put an i'm
mediate stop to fluctuations in the value
| of currency"
I still adhere to the views then ex-
pressed. As early as Dec. 4, 1865, the
! house of representatives. passed a reso-
| luton by a vote of IA yeas to nays,
concurring in the views of the secre
| tary of the treasury in relation to the
necessity of a contraction of the cur
rencv with a view to as early a resump-
tion of specie payments as the business
interests of the country viii permit,
and pledging cooperative action to this
| end as speedily as possible. The first
4 act passed by the forty-frst congress on
the 18th day of March, 1869, was as fol
lows
can act to strengthen the public
credit of the United States. Be it en-
| acted, etc, that in order to remove any
doubt as to the purpose of the govern
ment to discharge all its obligations tC
the public creditors and to settle con
| fiictino questions and interpretations OF
the law by virtue of which such obliga
tions have been contracted, 1t Is hereby
proyided and declared that the faith o.
the United States is solemnly pledged
to the payment in coin or its equivalen
of all the interest bearing obligations
except in case where the law authorizing
the issue of any such obligation has ex
pressly provided that the same may b'
paid in lawful money or other currency
than gold and silver, bnt none OF sal6
interest bearing obligations not alread!
!, due shall be redeemed or paid before
maturity, unless at such time as TIT
United States notes shall be convertible
, into coin at the option of the holder, Of
unless at such time the bonds of tht
United states bearing lower rate o
} interest than the bonds to be redeemed
can be be sold at par in coin; and tn,
: United States also solemnly pledges il
faith to make provision at the earlies
practicable period for the redemption O
United States notes in COIN"
] This act still remains as continuing
pledge of the faith of the United State
to make provision, at the earliest prac
, ticable moment, for the redemption 0
the United States notes IN coin. A dec
laratio n, contained in the act or Jun
90. 1854, created an allegation that tn
. total amount of United states notes Is
, sued. or to be issued, should never e1
: coed four hundred millions of dollar;
{ The amount IN actual circulation wa
actually reduced to three hundred an
, / fifty-six millions of dollars, at whie
point congress passed the act OF tet
z, 1858, suspending the future redu'
t ton of the currency. The torty-fou
:: millions have ever been regarded as
: reserve, to be used only IL case {
/, emergency, such as has occurred on sex
q eral occasions, and must occur wheI
G from any cause, revenues suddenly IA
4 below the expenditures and such r
/ serve is necessary, because the fraction
j al currency, amounting to fifty millions
J, is redeemable in legal tender on cal
1t may be said that such return {