The Republican journal., 1874-04-30
The Veto of Initiation.

al not beng able to give my assent TO a measure
"hlcn mas received d sanction of the majority
II legislators chosen by the people to make
Jaws for their guidance and have studiously
1uSht 10 and sufficient arguments to justify
zen assent, but unsuccessiully. Practically. 1t
Is question whether the measure under dis
cusslon would give IN additional dollar to the
irredcemabc paper currency OF the country OF
not, ana whether, by requiring thrcC-tourtho of
tac reserves TO be retained by the banks and
prohibiting interest to be received onhe balance,
II might not prove 4 contraction; but the fact
cannot be concealed, that theoretically the hill
increases the paper circulation 500, 900 900 less
only the amount of reserves restrained from
circulation by the provision of the second sec
non. The measure has been supported on the
theory that it would give increased eirculation
IL Is 1alr inference, therefore, that ii in
p'actlce Congress should fail to create the
a?uhdance OF circulation expected Of it. the
friends OF the measure, particularly those out Of
congress, would clamor for such initiation rs
would give expected relief. The theory, in my
Dalef Is departure from the true principles of
hhanre, national interest. national obi CATION 10
creditors, Congressional promises. party pledges
on the part of both political parties, and of the
personal views and promises made by he in
very annual message sent to Congress. and in
e ch inaugural address
IN my annual message to Congress i'll pcram-
Der, 1860, the following passage appears:
Among the evils growing out of the rebel
hon, and not vet referred TO- is that Of an ire
WIZ receive your most earnest attention. II is
" nut. "ilu one OF the highest duties OF GOV
lii,,h' 70 secure 10 citizens medium OF en-
ill., " 49, INV lilg Naiue; inns mn
tute for It can be devised. 1t should be cGm-
nlenced now and reached at the earliest practic-
moment consistent WIN alilf regard 10 the
tiI,,ir2ts VI tlie oepior class. immaculate re-
n III II l aS.i'"plt' "ou,o MOI DE ue>iraoie
~ Mou'" tohpel inc debtor class to pay beyond
their contracts. The premium on gold at the
10y W a"tli pul'haAt "ouiu pilhS pahhtupteH
49, - ~ - lHousailuN. lhe uuctut'loh' now
,' "a "IGl allt OF me measure OF al values,
~, i d'trllheht'ti 10 me interests OF trade 1t
iii'[tI ny man Oh business an involuntary
'tiPIel, LOT III lli SAFES where iuure payment
,i ny +I 49,. ~ l''i 't lFNtli[ ~ 10 "Hd
ai,"o iii' N''u' VI 'he currency |" ne Pald ana
,+l.
l, wy lcG"tlilthV I" YOU thei' Nilch
,s2;' - VII ensure i SIduuAt return I"
w t's i'igits anu l.ui tl lheulatf Nt"l |"
""f 'ua a11 III Hd'u' ol Jhe currency
~ ''"iElt ~ Ile views lien expressed.
~ carry H. December 18th, 1850, The House OF
representatives passed resolution by vote
~ - yfas ~ nay cohcurrn9 III thc views OF
we secretary OF Inc reasurv III relation TO the
NECESSITY OF colllraclloh OF INC currency with
VIZ ~ "li talH resumption OF specie payments,
- lie "uNiht>9 interests OF me country VIII
l"!iil'' nhu llleuSlhS cooperative artlon I" TINS
' a. ~ l'osSlpi'. Inc ilTSt afl passed
~ uie 4lHt oL9reSS' on N" ism OF March.
i7o,1 wa, - iolloNs
~ ~ TO strengthen the puhic credit OF the
u!teu NlaleS'
ne IL enacted lhaf IN order TO remove any
',ou9' - 70 'nF purpose of me government 70
.UN'LH7t All iiS obilSalons 10 the publlc credl-
II, az" 10 >CVtic coIlIlGtIhS questions ;nu inter-
~ rt''I"lS ~ inc Jaw, pA Nhtuc OF Wnlth elch
,pl-' s 5I0i'S nav Deti1 coI'Ilctcl' IL + hcfcby
Ply IGet. ana ueclarcd thal me falth OF The
Aittu NttteS u SoIehlhly pledged TO the pay
'4i' ~ tVtn u ~ equiv dltllt ol an te Obllga-
nt .,lf l.l inf
fearing opl$aIlohs, except where the law
Hu1ioi lAth5 me issue OF any SUCH Obligations
ia: tAl,ltssH PROVIDED !hat the same may he
llald III lawful money or i'll any other currency
"l!ier lnln gold silver but none Of sand inter
Tst bearing obrgatons, not already due, shall
pe it'lcehtu OF pald before maturity unless At
Nucii tlhies H. hltcd states notes shall he con-
NtfllpIe INTO com at the option of the holder, or
unte9s ~ euCh tliiies lhe ponds OF the United
STATES bearing Il lower rate OF interest than the
Dolius 10 pc redeemed can be sold at par in coin
~ i Iso tlit ohittu states solenlhly pledges lis
III ~ iiahc prov IslohS al me earliest lactl-
t ~ ny. io 'ilc redemption OF United states
'i9 ne Ill com.
thls aeL sun remains as continuing pledge
" lAt lditn Vi tlle United States TO make pr0vs
IN ~ d. ~ c"iIes! l'r'CtlcaDle moment Tor the
reuel9ptlon OF United States notes in coin.
40, - ueclafuloll contained III the act OF June 20,
lHof. created an obligation that the total amount
OF lnlted States notes issued or TO be issued
siIoui" never exceed S+OV,00O,0OU. The amount
IN ,- acutual circulation was actually reduced to
act Of February 4 1865. slSpending the tnrth her
reduction Of currency, and the $4,000 900 have
~ eee9 en- regarded as reserve to be used only
>yer y, ehey n 1url . rs nave occurred on
orN "I OCCASIONS ana must occur, when. from
~ .'utc tile leN tluts suddenly Ial below the
tAPchultoies' ana sucn reserve Is necessary be-
eiuse the fractional currency amounting to $50
09o,oVo Is redegmable in legal tender on call. Ii
rnrremey far 'iii, Ta tulm q lraff,on
steps De taken for refurn tn ;, snecio ~ h. ~
and it will be found that silver viii take the
place OF fractional currency as rapidly a. il can
'' STqpl'lt 1i'l
ontiI low ndj lri''I , otl oii lences 1tlci
states notes 10 be issued permmenty Win
proper limits. and the Treasury 50 strengthened
a, 4, TO TOP be 1Dle to redeem them in coin on demand
fo" hanl fm o ,i ,Ile 10 uSrale system Of
compulsory redemption Of crrpIating notes. n" 'n
banks in coin or ii United states notes. them
selves redeemable and made equivalent TO coin.
~ %