Delaware Republican. (Wilmington, Del.) 1843-1874, 1874-04-27
VETO MESSAGE WASHINGTON, April "a
Ihe followlngis the Presidents veto message to
tie Senate oftbe United States:

l
VETO MESSAGE. April % -
Ihe following is the Presidents veto message t
tie Senate oftbe United States:
Herewith return Senate bill No. 0l7, enti
tied IAN act to fix the amount of United State
notes and the circulation of national banks ,ant
fur other purposes, without my approval. In
doing so must express my regret at not be ing
able TO give my assent to u measure which ha.
received the sanction of majority of the legis
lators chosen by the people 10 make laws foi
their guidance, and have studously sought to
find sufficient arguments to justify such assent
but uusuccessfully. Practically, it is a question
| whether the measure under discussion would
give an additional dollar to the irredeematle
paper currency of the country or not, and
whether, by requiring three-fourths of the re.
serve 10 be retained by the banks and prohibit.
ing interest TO be received on the balance, II
might no. be contraction; but the fact cannot
be concealed that, theoretically, the bill increas-
es the paper circulation one hundred millions
| OF dollars, less only the amount of reserves re-
strained from circulation by the provision OF
| the second section. The measure has been
supported oD the theory that it would give in
creased circulation. 1t is fair inference, there
fore, that, If in practice the measure should fail
TO create the abundance of circulat ion expected
Oft, the friends of the measure, particularly
those out of Congress, would clamor for such
inha'ion as would give the expected relief.
rhe theory In my belief was a departure from
true princiDles of finance, national interest," ma
tional obligations TO creditors, Congressional
promises, party pledges on the rart of both po-
llLical parties and OF personal views ami promis-
| es made by me In every annual message, sent to
Congress and in each inaugural address. In
| my annual message to Congress In December,
| 1867, the following passages appear: Among
the evils growing ont of the rebellion, and not
yet referred TO, is that of an ire deemabe cur
| rency. 1t Is an evil which | hope will receive
your most earnest attention. 1t is a dnty and
one of the highest duties OF government TO Sc
cure TO thu citizen medium of exchange Of
fixed, unvaiying value. This implies Il return
" specie basis, and no substitute for IL can be
devised. IL should be commenced now and
reached at the earliest practicable moment cou-
sistent with fair regard TO the interest Of the
debtor class. Immediate resumption, if prac-
licable, would not be desirable. IL would com
pei 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. Fluctuation, however, in the
paper value OF the measure of all values, gold,
IS detrimental 10 the interest Of trade. 1t makes
the man Of business ali involuntary CANT bler, tor
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 receiv-
Ell earnestly recommend 10 you, then, sucu
legislation as will insure a gradual return tn
specie payments and put an immediate STOP tu
fluctuations in the value of currency" | still
adhere to the views then expressed. As early
as December 4, 1865, the House of Representa-
tives passed resolution, by vote of l44 yeas
TO nays, cOncurning In the views Of the Sec
retary ct the Treasury In relation to the ne
cesstY OF contraction Of the currency, with
view to as early resumption of specie pay
ments as the business Interests of the country
will permit, and pledging cooperative action to
| this end Ms speedily as possible. The first act
passed by the Forty-frst Congress, Oh the 18Th
day of March. 1863, was as follows:
"An act TO strengthen the public credit of the
United States. Be it enacted, DC. That ia
| order to remove any doubt as 70 the purpose of
the Government To discharge all Its obligations
| to the public creditors, and to settle conflicting
questions and interpretations of the law by yit-
| tue of which such obligations have been con-
| tracted, 1t is hereby provided and declared that
i the faith Of the United States is solennlv
pledged to the payment in coin, or its equiva-
| lent, ofal the obligations Of the United States,
| and Of all the interest bearing obligations, ex-
| cept iD cases where the law authorizing the is
| sue Of any such obligations has expressly pro-
vidsd that the same may b. paid in lawful
[ money, or In other currency than e Id and sill
YER but none Of the sail Interest bearing obi
cations not already due, shall he redeemed or
paid before maturity unless ut SUI, tim IS as the
United States notes shall be convertible into
| coin at the option Of the holder or unless a.
such times bonds Of the United States bearing
| lower rate Of interest than the bonds TO be re-
deemed can be sold at par in coin. And the
United States also solemnIy pledges its faith To
make provision. at the earliest practic Ibe peri
cd, for the redemption Of the United States
notes In coin."
This act still remai0s as continuing pledge
of the faith Of the United States to make proyi-
o. hA ltAa tfnal.I 10 a.
redemption OF the Urited States notes In coin
A declaration contained in the act Of June 80,
1864, created an obligation that the total
amount of United States notes issued or to be
issued should never exceed four hundred mil
lions Of dollars. The amount in actual circua-
tion was actually reduced to three hundred and
hny-six millions Of dollars, at which point Con-
gress passed the act of February 4, 1865 sus-
pending the further reduction of the currency,
The forty-four millions have ever been regard
ed as a reserve TO be used only in case of ener-
gency, such as has occurred on several occa-
sions. and mrst occur when from any cause
revenues suddenly fall below expen litures
and such a reserve Is necessary because the
fractional currency, amounting 10 fifty millions
Is red~emable in legal tenders on cali
u may be said that such return of fractional
currency for redemption is impossible. But let
steps be taken for return W specie basis and
II will be found that silver will take the place
OF fractional currency as rapidly as 1t can he
supplied. When the premium on gold reaches
a sufficiently low point with the amount of
United States notes to be issued, permanently
fixed within proper limits, and the Treasury 80
strengthened as to be able 10 redeem them in
coin on demand, 1t will then be safe to inaucu-
rate system of free banking, with such pro-
| visions as to make compulsory redemption of
the circulating notes Of the banks in coin or in
/ United States notes, themselves redeeniable
! and made equivalent 10 coin. As a measrre
preparatory 70 free banking, or for placing the
aovernment In condition to redeem its notes
In coin at the earliest practicable moment, the
revenues Of the country should be Increased SO
as 70 pay current expenses, provide for the
sinking fund required by law, and also
surplus to be retained in the treasury in gold.