Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1874-04-30
The Presidents Veto Message.

AAAO Il GU AACCS6&Cs
To the Senate Of the United States:
Herewith 1 return Senate bill No.
617, entitled can act to fix the amount
of United States notes and the circu-
lation 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 legislators cho-
sen by the people to make laws for
their guidance, and 1 have studiously
sought to find sufficient arguments to
justify such assent, but unsuccessfully.
Practically, it is a question whether
the measure under discussion would
give an additional dollar to the ire
deemable paper currency Of the coun
try or not; and whether, by requiring
three -fourths of the reserves to be re-
tanned by the banks, and prohibiting
interest to be received on the balance,
it might not prove a contraction. But
the fact can not be concealed that,
theoretically, the bill increases the pa
per circulation 100000, 900, less only
the amount of reserves restrained from
circulation by the provisions of the
second section.
The measure has been supported on
the theory that it would give increased
circulation. 1t is q fair inference,
therefore, that if in practice the meas
ure 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 imitation as wO1ld give the ex-
! pected relief. The theory, in my be-
! lief, is q departure from the true prin-
ciples of finance, National interest,
national obligations to creditors, Con-
gressional promises, party pledges on
the part of both political parties, and
of the personal views and promises
made by me in every annual message
sent to Congress, and in each inaugu-
raj address.
In my annual message to Congress
in December, 1869, the following pas
sage appears: ''Among the evils grow
ing out of the rebellion, and not yet
referred to, is that of an irredeemable
currency 1t is an evil which I hope
will receive your most earnest atten-
| ton. It is a duty, and one of the
/ highest duties of the Government, to
secure the citizen a medium of ex-
change of fixed, unvarying value. This
implies return to a specie basis, and
no substitute for it can be devised. 1t
| should he commenced now, and reach
ed at the earliest practicable moment
consistent with fair regard to the in
terest of the debtor class. Immediate
resumption, if practicable, would not
be desirable. 1t would COMPEL the
debtor class to pay beyond their con-
tracts the premium on gold at the date
of their purchase, and would bring
bankruptcy and ruin to thousands.
Fluctuations, however, in the paper
value of the measure of all values
gold-is detrimental to the interest of
trade. 1t 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 and received. I earnestly
recommend to you, then, such legisla-
ton as will insure a gradual return to
specie payments, and put an immediate
stop to fluctuations in the value of
currency" .,..
still adhere to the views then ex-
pressed. AS early as December 4th,
1866, the House of Representatives
passed resolution by vote of LA
yeas to 6 nays, concurring in the
views of the Secretary of the Treasu-
ry in relation to the necessity of a con-
traction of the currency, with a view
to as early a resumption of specie
payments as the business interests of
the country will permit, and pledging
cooperative action to this end as
speedily as possible. The first act
passed by the Forty first Congress, on
the 18th day OF March, 1869, was as
follows: "An act to strengthen the
public credit of the Uuited States Be
it enacted, etc., that in order to remove
any doubt as to the purpose of the
Government to discharge all its obli-
cations to the public creditors, and to
settle conflicting questions and inter
pretations of the law by virtue OF
which such obligations have been con-
tradicted, it is hereby provided and
declared that the faith of the United
States is solemnly pledged to the pay
ment in coin, or its equivalent, of all
the obligations of the United States,
and of all the interest bearing obliga-
tions, except in cases where the law
authorizing the issue of any such OBJ
legations has expressly provided that
the same may be paid in lawful money,
or in other currency than in gold and
silver; but none of said interest hear
| n nt0lIOrafinnc Of al hoI
be redeemed or paid before maturity,
unless at such times as the United
States notes shall be converted into
coin at the option Of the holders, or
unless at such time bonds of the Uni
ted States bearing lower rate of in
terest than the bonds to be redeemed
can be sold at par in coin; and the
United States also solemnly pledges
, its faith to make provisions at the earli-
est practicable period for the redemn-
, ton of United States notes in coin.''
This act still remains as continu-
ing pledge of the United States to
make provisions at the earliest practi.
: cable moment for tie redemption of
the United States notes in coin. A
: declaration in the act of June Goth.
r 1864, created an obligation that the
total amount of the United States
: notes issued, or to be issued, should
r never exceed four hundred million oi
e dollars. The amount in actual circu-
lation was actually reduced to three
hundred and fifty six millions of dol
r lars, at which point Congress passed
the act of February 4, 1868, suspend
, ing the further reduction of the cur
! rency. The forty-four millions have
7 ever been regarded as reserve, to b.
d used only in case of an emergency
s such as has occurred on several occa
sions, and must occur when from any
cause the revenues suddenly fall be