River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1874-05-01
THE VETO MESSAGE.
President Grants Views on the Finan.
cial Bill.
Full Text of the Document.


message of the President returning to
the Senate, the finance bill. 1t will be
seen that the President reiterates in
this paper views enunciated by him in
former state papers. This action ON
the part of the President leaves the
matter in the hands of Congress, to de-
wise some other means Of financial re-
lief
70 me Senate of he United States
Herewith return Senate bill 51T, entitled
" An act 10 ga the amount OF United States
notes aud the circulation Of The national banks.
and for other purposes, without my approval
In doing so must express my regret at not
being able TO give my assent to O measure
which has received the sanCtioh Of a majority
Of the legislators Chosen by the people TO
make laws for their guidance, and have stu
dously sought TO find sufficient arguments 10
Justify such assent, but unsuccessiully. prac.
tlcally, this question whether The measure
under discussion would give an addiiona,
dollar toIthe irredeemable paper currency of
the country or not, aEd whether by requiring
three-fourths OF the reserve TO be retained by
banks, and prohibiting interest TO be received
on balances II might not prove contraction
bill. The fact cannot be concealed that, theo.
retcally, the bill increases the paper circula-
tlOn tlO0, 600 900, less only the amount OF re.
serves restrained from circulation by the pro-
visions OF the second section. The measure
has been supported on the theory that it
would give increased circulation. 1t is fair
Inference, therefore, that ii in practice the
measure should fail to create the abundance
oi circulation expected OF IT,, the friends Of
the measure, particularly those out Of Con.
gTess, would elamor for such imitation as
Aaaaaa .IfaH
IS departure from the true principles Of
finance, national interest, national obligation
TO creditors, Congressional promises, party
pledges on the part OF both political Iarties
and Of the personal views aud promises made
by me IN every annual message sent 10 Con.
gress, aud ia each inaugural address. In nv
annual message to Congress in December
1867, the following passages appear:
Among the evils growing out OF the rebel.
lion, and not yet referred to, IS that OF ire
deemable currency. 1t is an evil which hope
VIII receive your most earnest attention. 1t
Is a duty, and one Of the highest duties of
the government TO securN to the citizen a
medium OF exchange OF fixed, unvarying value.
This implies return to specie basic. and
no substitute for Il can be devised. II should
be commenced now, and rea ehed at the earll.
est practicable moment consistent with fair
regard TO the interest OF the debtor class.
Immediate resumption. II practicable. would
class to paw beyond their contracts the pre-
MUM on gold at the rate of their purchase,
and would bring bankruptcy and ruin to
thousands Fluctuations, however, in the
pa1Cr value OF the measure of all values,
gold, Is detrimental to the interests of trade.
II makes the mau OF business an involuntary
gambler, for IN all cases where future paw
ment Is 10 be made both parties speculate as
20 what will be the value of the currency to
be paid aud received. | earnestly recommend
to you, then, such legislation as will insure a
gradual return to specie payments, and put
an Immediate stop 70 the fluctuations in the
value Of currency.
As early as Dee 4, 1865, the House OF Repre-
sentatlyes passed resolution, by a vote OF
/ Al yeas to nays, cOncurrIng in the views OF
the Secretary Of til Treasury in relation to
the necessity OF a contraction OF the currency
with the view to as early a resumption OF
specie payment as the business interests of
the country will permit, and piedgng Coop
eratye action to tins end as speedily as pOssi-
BILE. the first act passed by the FOrty-irs;
Congress, on the 18th day OF March, 1862 was
as follows:
Az ACT to strengthen the public credit Of the
United States.
BE It enacted etc, That IN order to remove
any doubt as to The purpose IT the govern
neut 90 discharge all its obligations 10 public
creditors and to settle the conflicting ques-
lions anu interpretations OF the Law OF values
Of which such obligations have been con
racted. 1t IS hereby provided aud declared
tina, the faith ct the United States Is solemny
predge to th payment in coin, or its cquIva
lent of all obligations OF the Unit a States
ana Of All interest bearing obligations, except
m cases where the law authorizing the issue
OF any such Obligations has expressly provided
that the same DC paid IN lawful money or
other currency than gold aud silver; but none
nl the interest hearing obligations Not already
due shall be redeem 4 OF paid tor before ma
uity, unless at such times as tie Unite
states notes shall he convertible into coin at
the upton Cf the holder. or unless a. such
time bonds OF the United states bearing a
lower rate of iuterest than the bonds to be
redeemed eau be sold al par in coin. and the
| United states also sOlemuly pledge its faith 70
maHc provision, at the earliest practicable
/ period, tor the redemption Of United States
| notes IN coin.
/ THIS act still remains az a continuing
/ pledge of the faith OF the United States 10
make provision AZ the earliest practicable
moment tor the redemption OF the United
states notes Ia CON.
! declaration contained IN the act OF June
/ 20, 1861, rcatcd an obligation that the total
| amount Of United States notes issued, or 10
/ be issued, should never exceed 500 600 0p1
/ The amount IN actual circulation was actually
| reduced to 1886 600 goo, at winch point Con
/ grt - passed the act OF FEB. I, 1865 Sus
-, ling the further reduction of the cur.
rcncy The fi4 ,00U0D0 have even been n.
| caTdcd a reserve. 10 be used only Ia ease OF
| an emergency, such as'hGs occurred on seve-
raj occls lous aud must occur when ftom any
cause the revenues suddenly fail below the
txpt nditnres, and such a q serve is necessary,
because the fractional currency, amount.
lung 81 sj0,000,oJe " rodecmable m
legal tenders on call. IL mas be id that
such return OF fractional currency for re-
dcmptou rs improbable hut let steps be-
taken for return 90 a specie basis, aud it
viii be found that SILVER will take tho place
Of fractional currency as rapidly as 1t can be
supplied. When the premium on gold reach
IS a sufficiently low point, with the amount
Of United States notes 10 be issued perDla
urntly within proper limlts, aud the rr asury
| 50 strengthened ~ to be able b. redeem
/ them On coin on demand. Il VIII be- then safe
! o. lnaugulate system OF free banking, with
such provisions as 10 make compulsory the
I redemption of the circulating notes OF banks
I 10 c0in or Unite States notes themselves re-
! dyrmlblt aud made equivalent 20 coin. As &
measure preparatory 90 free banking. or for
/ placing the government 10 position TO re-
/ d,em ~ Obligations Ia coin ~ the earliest
! PRACTICABLE, moment the revenues OF the
1 country should bo increased 50 as 10 pay the
! current expenses, provide tor the
sinking fund required by law. and
/ alse surplus 10 be retained In
I the rcasury ~ gold | am MT q believer In