Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1874-05-06
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The Veto and the Reserve.

From the Detroit Free Press.
The persistency with which gold
maintains itself at or near the point
reached by it during the height of
the imitation excitement has occa-
stoned some little surprise. AS the
advance was credited to fear of
expansion and consequent depreci-
alton in the paper currency of the
country, it was natural to expect
that the blow given to expansion
by the veto would cause gold to re-
treat. No such result, however,
has yet followed though a week
has elapsed and though the veto
has been supplemented by the re-
fusal of the Senate to pass the infla-
ton bill over it. 1t is clear, then,
either that the advance in gold was
not due simply to the proposition
to expand, or that the veto, and the
check thereby given to expansion,
have less force than they have been
credited with. The latter we be-
lieve to be the true explanation of
the continued high price of gold,
or rather Of the continued depreci-
alton in the paper currency of the
country.
We do not wish to belittle the
veto. 1t was in many respects the
greatest and most commendable act
which President Grant has ever
formed. 1t involved in the per-
Torrance a higher disregard of par
tisan considerations, more signifi-
cant cutting loose from entangling
alliance with the worst elements of
his patty than was ever before de-
manded of him and he met the
demand with firmness and fullness
which were none the less gratifying
because almost entirely unexpected.
1t was well done /; and the approx
ing voice Of the nation has COM
mended the act. But neither be-
cause the act deserved approval for
the sacrifice it involved, nor be-
cause it operated as a check upon
the schemes of the inHatlonists, is
it worth while to overrate its abso-
lutte value. 1t has given the Presi-
dent a better hold upon the people,
1T has elevated him in the estima-
ton OF the better men of his party
and 1T has given the community
reasonable assurance that certain
forms of trifiing with the finance.
OF the country cannot succeed
but beyond this it has done nothins
4 tor the people. 1t has at best simp
s ~ placed the country where it wa
: before the beginning of the Ion.
and useless discussion by Congress
of the financial question. At tina
IS time both the political parties Q
Ie the country stood solemnly pledge
e against expansion and to speed
return to specie payments What
W ever real confidence there was /
lie the currency was born of thos
g pledges; and all that the Presider
d has practically done by his vote is |
e assure the country that it may eli
: keep its confidence, though Il
pledges have been broken so far
q those breaking Them had the pow,
o to break them.
n The net result, therefore, thong
4 a real good, is only a negative on
The country has gained nothing.
I has simply been prevented losiD
I something. Even on this theor,
!. however, gold should have declined
0 and 1t probably would have don
4 so had 1t not been that the Presi
3 dents veto added TO its negativ
{ benefit a positive injury. II re
; newed confidence in one direction
but In another IL destroyed conf
deDce. Beside the trust which wa
fssn in a .~raiual ,..t.,, o. . so,,,.