New-York tribune., 1874-04-23
yOL. XXXlV... No. 1884.
THE END OF INFLAIloN.
THE PRESIDENTS VETO.

THE PRESIDENT UNABLE ~ rhND
usrIFY HIS ASSENT TO THE MEASURE
ruropv oP IMITATION A DEPARTURE FROM THE
rv,xcrprrs OF FINANCE, CONGRESSIONAL AND
pursrDvyTTAr, PROMISES. AND PARTY PIEDGEs-
,r,,r,,p,, n, SPECIE PAYMENTS ADVOCATED.
WASHINGTON, April 22.-The following Is
The Presidents message yetoing the oen"Ve
Finance bill: ,,.;.L, ~
10 the Senate of the UNited States: Herewith to
,urn Senate bill No. 617, entitled An act 10 ia tn'
amount of United States notes and the cicuia'iou
of National banks, and for other purposes, without
nv approval In doing so must express my reeIe'
a, NOT being able TO give my assent to measure
ybicb has received the sanction of a majority OF
the Legislators chosen by the people to make
laws for their guidance, and l have studi-
onslv soucht TO find sufficient arguments TO
,,stify sueh assent but uusuccessfuly. Practically
n Is a question whether the measure under discus
s,o1 would give an additional dollar to the IRE
deemable paper currency of the country or not anu
whether by requiring threefOurths OF the reserves
40 he retained by the banks and prohibiting interest
70 be received on the balance it might not prove
contraction But the fact cannot be concealed that
Theoretically the bill increases the paper circulation
SiOOOOOOOO less only the amount OF reserves re-
tanned from circulation by the provisions OF
second
supported on the theory that it would give
increased circulation. 1t is fair Inference,
therefore, that if in practice the measure should
fail 90 create the abundance Of circulation eX-
ected of it, the friends of the measure particularly
those out Of Congress- would camor for such infla-
top as would give the expected relief. The theory,
m nv belief Is a departure from the true principles
Of finance national interest, national obligations to
creditors Congressional promises, party pledges on
the part of both political parties, and of the per-
sona views aud promises made by me- in every
annual message sent to Congress, and IN each mau-
guIal address. In my annual message to Congress,
Ia December. 1859, the following passages appear:
Among the evils growing out OF the Rebellion aud not
vet referred TO- that OF an rredeemaOle currency
II IL an evil which hope will receive your most earnest
attention. s duty, and one of the highest duties OF
the Government, TO secure to the citizen medium OF
e1onange ol bxed uuyarying value. This implies re-
turn to specie basis, and substitute for 1t can be
devised. I sEould be commenced now and reached at
the earliest practicable moment consistent with fair
regard the interest of the debtor class. Immediate
resumption. practicable wOuld be desirable 1t
would compel the debtor class TO pay beyond their con-
tracts the premium gold at the date Of their pur'
chase, and would bring bankruptcy and ruin to thou
sands Fluctuations however in the paper yalue Of the
measure of all values-god-is detrimental TO the IN
nest Of trade. makes the man OF business an lnvo
r.,
to De made both parties speculate as to what will be
the value of the currency he paid and received.
earnestly recommend TO you, then, such legislation
VIII insure gradual return 10 specie payments and put
all immediate stop fluctuations the value OF cur
puey.
still adhere to the views then expressed. As
eaIly a. Dec. d. 1865 the House of Representative
passed resolution, by vote OF l4f Yeas TO Nays
ooncurrng the views of the Secretary ofthe Treas
4 A.. of ,f
The currency with a view to as early resumption
of specie payments the business interests of the
country will permit, and pledging cooperative action
to tins end as speedily as possible. The first act
lasscd by the XLIst Congress On the 18Th day OF
March 1862 was as follows
As ACT to strengthen the public credit United states
Re Il enacted, dc, That IN order 10 remove any doubt
asto the purpose Of the Government to discharge all
IT. OBLIGATIONS 10 the public creditors, and TO settle con-
hctng questions aud interpretations OF me law by VIZ
tue Of which obligations have been contracted it
hereby provided and declared that the faith OF the
UniteG States is sOlemuly pledged to the payment IN
con or It's equivalent OF all the obligations Of the
Uu!ted States not bearing interest known as United
notes aud Of all the nterestbeariug Obligations,
except where the law authorizing the issue of
any such obi CATION has expressly provided that the
may be paid IN lawful money 10 other currency
than god and silver but of said nerestbearing
before maturity unless at such times the United States
shall be convertible into coin at the option Of the
aOlder, OF unless at such time bonds OF the United
States bearing lower rate Of interest than bonds to
be redeemed can be sold at par in coin. Aud the
United States also solemny pledges its faith to make
provision at the earliest practicable period for the
redemption Of United States notes in coin.
This act still remains as a continuing pledge of
che faith Of the United States to make provision at
the earliest practicable moment for the redemption
Of the United States notes in coin, declaration
contained in the act of June 20 1864 created OBJ
legation that the total amount of United States
nOtee issued or to be issued should never exceed
S4OOOOOOOO. The amount in actual circulation was
actually reduced to $356,0OO,OO0, at which point
Congress passed the act of Feb. 4, 1868, sus-
pending The further reduction of the currency. The
SH0o have even been regarded as reserve to be
nsed only in case Of an emergency such as has oc-
CURED on several occasions, and must occur when
from any cause revenues suddenly fall below expen-
dituTes and such is necessary, because the
fractional currency, amounting to $5O0OOOOO, is re-
deemable in legal tender on call. it may be said
that such return Of fractional currency for redemp-
ton is Impossible but, let steps be taken for re-
turn 10 a specie basis. and it will be found that
siveT Will take the place of fractional currency as
rapidly IT can be supplied.
When the premium gold reaches sufficiently
low point, with the amount Of United States notes
to be issued pc -manently within proper limits and
the Treasury strengthened as to be able to re-
deem them in coin demand, 1t will then be safe to
insugurate system Of free banking with such
provisions as to make compulsory, redemption of
circulation notes of banks in coin United States
notes themselves, redecmable and made equivalent
TO coin, as a measure preparatory to free banking
or for placing the Government in a condition to
refeetp coin az the earliast