The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1874-05-16
VETO OF THE CURRENCY BILL.


To the Senate of the United STATES: 5000
Herewith return Senate bin number 6l7. en-
titled An Act to fix the amount of United States
notes andscirculation of national banks, and for
other purposes, y without my approval In DO
ing so, must express my regret at not being
able to give my assent to measure which has re-
eeived the sanction of . majority OF the leelsia-
tors chosen by the people to make Jaws ior Their
guidance. i have studiously sought 20 finfis sut-
ssns g 5ani Il is aaesop a1ses beth
er the measure under discussion would give an
additions al dollar to the irredeemahle paper cur
rency of the country or MOI. and whether, ny re-
auiring three fOnrths of the reserves to be re-
tanned by banks, and prohibiting interest 10 be
received on the balance, it tmightnoe prove aeon
traction. But the fact cannot be concealed that
theoretically thebill increases the paper cirsula-
tion one hundred millions of dollars less only
the amount of reserves restrained mona elreala-
ton by provisions of the second section.
The measure has been supported on the theory
that il would give more ased cireuatlon II is
fair Inference thereore 9, 70 saat M u prase 'ne n
circulation expected of it, the friends OF the mes
sure particularly those out of Congress, would
clapor for such imitation as would give the ex-
pected relief The theory, in nv belief, is de-
parture from the true principles OF fnance ma
tional interest, national obligations 70 eredsors,
congressional promises, party -pledges on the
part of both political parties and of the personal
views and promises made by me in every an
| nual message sent to Congress ana IN eaoh M
augHral address In my annual message TO
Congress in December, 1853, the Following pas
sages appear: "a. "a
'Among the-eF1lA growing out OF The fepel-
lion. and not yet referred 10, is that Of "a ire
| deeInable currency. 1t is an evil whichE hope
| willreceiye your most earnest attention. adt is
duty, and one of the highest duties, OF the Cow
change OF fixed, unvary ing value. This Implies
return 10 specie basis, anu no oslbstltusa Tor It
/ can be devised. 1t should be eommencest now
| and reached at the earliest practicable moment
consistent with fair regard TO the lntesesfs u
the debtor class. Innmedlate 1esumpLSn, y
| practicable would not be desirable; iikW0uld
compel the debtor class to pay beyond Tt con-
/ tracts the premium on gold at The date their
purchase and would bring Bankruptcy ruin
siFluctuations, however, in the paper le OF
/ the measure of all values, gold, is detrii al to
tine interests of trade. Il makes the mfn ,nsl- s-
ness an involuntary gambler. for IN sales aies
where future payment is te be made, both = fties
speculate as to what viii be the value Of the cur
1sf' earnestly recommend to you, then, such
legislation as will insure gradual urn TO spe-
Gle payments. and pus an immediate stop 10 fuc-
tuations in the currency = IS zsa.ssslsi
/ still adhere to the views then expressed. AS
t early as December &, 1855, the Housesof Repre-
sentatiyes passed a resolution, by ayefeof lti
| yeas to nays, coneurring in the views Of the
Secretary of the Treasury n reiaffont the neces-
sity of cantraction Of the currency, With view
TO as early resumption OF specie pawn nIs as
/ and ple6Ripg c0-opersfive action 10 this end as
4 speedily as possible The first act passed W the
Forty-frst sGongresss On she 18th day Of March,
'es ae G 10 stfe1tslien che pabIie credit of the
United Statess Be it enacted, ETC., That IN order
to remove any doubt as to the purpose of the
Governnent to discharge all its obligations to the
public creditors, and to settle conflicting ques-
tions and interpretations of the law by virtue OF
which such obligations have been cantracteu, It
is hereby provided and declared, that the faltl
of the United States is solemnly pledged 70 the
payment in coin, or its equivalent, Of az the OBJ
legations of the United States, and of all the IN
terest- bearing obligations, except IN cases where
the law authorizing the issue of any such obtlga-
tions has expressly provided that the same lNay
faxx
than gold and silver; cut none Of said interest
bearing obligations not already due shall be re-
| deemed or paid before maturity, unless at such
time the United States notes 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 re-
deemed can be sold at par in coin. And the
United States also solemnly pledges its faith 70
make provisions at the earliest practicable Pc
riod for the redemption of United States notes In
This act still remains as a continuing pledge of
the faith of the United States to make PROVISION,
at the earliest practicable moment, for the re-
demption of the United states notes in coin: A
declaration contained in the act of June 20, 1854
~created an obligation that the total amount OF
United States notes. issued or to be issued should
never exceed S4G0, 500, ,00A. The amount In
, actual circulation was actually reduced 70
S356 0((lOO0, at which point congress
passed the act of February (. 1856, snspendlng
l The further reduction OF the currency The S44,
0 0, COO have ever bern regarded as reserve, to
be used only in case of an emergency, sueh ss
has occurred on seEerals0ccasions. and must oc-
cur when, from any cause, revenues fan peloW
: expenditures; and such reserve is necessary,
, because the fractional currency, amounting tG
$50 Oo0 co., il rtdeemable in legal tenders on
call 1t may be said that such q return OF frac-
tional currency Tor Ftdenpton Is ImpossiDie, Du,
let steps be taken for return 10 specie paylhen
basis and il will be found that silver VIII take the
place of fractional currency as rapidly as IL can
be supplied.
. When.the premium on gold reaches a sufficient
: " low point with the amount OF United states
I notes to be issued permanently within proper
limits, and the Treasury 80 strengthened as TO Ds
II able to redeem them in coin on demand, 1T vii
;. then be safe to inaugurate system OF free bank
: ing with such provisions as 20 make compulsor,
the redemption of the circulating notes OF bank
s in coin or United States notes, themselves re
. deemable in and made equiyaient 70 coin. AS
measure preparatory 20 Tree banking. or for plac
ing the Government in condition to redeem 10
notes in coin at thee earliest practicabie moment
the revenues of the country should be Incl eases
so as to pay the current expenses prqVIue Ior 10
n sinkiBg-fund required by law, and. also surplu
Il to be returned to the Treasury In gold,
n | am not a believer IN any -artfcial method Q
s making paper money equal to coin when coin
= not owned or held ready TO redeem the promise
a to nav; for paper money is nothing more thai
n promises to pay, and is valuable exactly m pro
% portion 20 the amount Of coin that can pc con
= yerted fnto While coin IS not nsed IS q clrcu
u lating medium, the currency OF the country
not convertible into It at par, II becomes an artl
II eleof COMMERCE as much as any other pEoduGi q
= The surplus viii seek foreign market, as WI
a any other surplus. The balance OF trade ma
re nothing to do with the question The duties
he imports being required IN colD create tisi.e
n demand for gold and about enough to satisfy the
~ demand remains in the country 10 increase thi
a. supply see no way open but by the Govern
OF ment boarding, threugh the means aoove glyen
is and, possibly, by requiring the nAtionai panKs
.fr aid.
= It is claimed by the advocates OF the measnr'
~ herewith returned, that there is an unequal dii
er tribution Of the banking capital OF the country
ps was disposed to give great weight 70 This we
e of the qHestion at first, but on rehectl0n 1t vi
s be remembered that there still remains four mi
c. lions of dollars Of authorized bank uete eircul
tion assigned to States having less than their qu
ia of bank circufs ten, and they have the option
TWENTY-FIVE millions more to be taken from tho
to States having more than their proportion. WIS
ce thisis ell taken up, or when specie payments
st fully restored, n rapid process OF restor
ton wflI be the time TO consider the question
ne more cu rencv Il s. GRANT.
e. Executive Mansion, April q, 1874.
e, - - - - -
Or CANNED FRuIT.-This should be Il
a main dpnendpuea AT fhis season. OF the yea