The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1874-05-02
VETOED.
The Currency Bill Sent Back to
the Senate.
President Grants Message OF
DlsapprObatIOH.
The Reasons Given Plain and
UnmiStakable.
EXECUTIVE MANSION, !
WASHINGTON, April ~, 1871. !

EXECUTIVE MANsIoN,l
WASHINGTON, April ~, 1874.
To the Senate of the United States:
Herein | return senate bill number
Gl7, entitled an act to fix the amount o
United States notes and circulation o
national banks, and for other purposes
without my approval. In doing So
must express my regret ut not being
able to give my assent to measure
which has received the sanction of 6
majority of the legislators chosen by
the people to make laws for their guild
ance, and | have studiously sought tC
find sufficient arguments to justify such
assent, but tuiisuccessfully. Practically
it is a question whether the measure
under discussion would give an al.
ditional dollar to the irredeemable pa
per currency of the country or not, and
whether, by requiring three-fo fourths ol
the reserves to be retained by the
banks, and prohibiting interest to be
received on the balance, it might not
prove u contraction. But the fact can
not be concealed that theoretically the
bill increases the paper circulation one
hundre millions of dollars, less only
the amount of reserves restrained from
circulation by provisions of the second
section.
The measure has been supported on
the theory that it would give increased
circulation. 1t is 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 in1ia-
ton as would give the expected relief
The theory, in my belief, is depart
ure from the true principles offinance,
national interest, national obligations
to creditors, congressional promises,
party pledges on the part of both polit-
cal parties, and of the personal views
and promises made by me in every
in each inaugural address. In my all
nual message to congress in December,
1859, the following passage appears
"Among the evils growing out of the
late rebellion and not yet referred to
is that of an irredeemable currency.
1t is an evil which l hope will receive
your most earnest attention. 1t is u
duty, and one of the highest duties, OF
the government to secure the citizen a
medium of exchange of a fixed, un-
varying value. This implies n return
to the specie basis, and no substitute
for it can be devised. 1t should be
commenced now and reached at the
earliest practical moment consistent
with fair regari to the interests of
the debtor class. Immediate resnmp-
tion, if practicable, would not be de-
sirable; it would compel the debtor
class to pay beyond contracts the pre-
MUM on gold at the date OF their pur'
chase, and would bring bankruptcy
and ruin to thousands. Fluctnation,
however, in the paper value OF the
measure of all values, gold, is detri-
mental TO the interests Of trade. 1t
makes the man of business an invol-
untary 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 earnestly recommend to
you, then, such legislation as will in
sure atIgradual return to specie pay
ments, and put an immediate stop to
fluctuations in the currency"
still adhere to the views then eX-
pressed. AS early as December 4, 1865,
the house of representatives passed
resolution, by vote of 144 yeas to q
nays, concurring in the views of the
secretary of the treasury in relation to
the necessity of u contraction of the
currency, with view to as early re-
sumption OF specie payments as the
business interests of the country VIII
permit, and pledging cooperative action
to this end as speedily as possible. The
first act passed by the forty-first con-
gress on the 18th day of March, 1863,
was as follows:
"HAn act to strengthen the public
credit of the United States. Be it en-
acted, etc, Thatin order to remove any
doubt as to the purpose of the govern
ment to discharge all its obligations to
the public creditors, and to settle con-
flicting questions and interpretations
of the law by virtue of which such OBJ
legations have been contracted, it is
hereby provided and declared, that the
faith of the United States is solemnly
pledged to the paymentin in coin, or its
equivalent, of all the obligations of the
United States, and of all the interest
bearing obligations, except IN cases
where the law authorizing the issue of
auy such obligations has expressly
provided that the same may be
paid IN lawful mo- money, or ~,
other currency than gold and
silver, but none of said interest-bearing
obligations, not already due, shall be
redeemed or paid before maturity, un-
less at such time the United States
notes snai oe .L GoteIsiore ,a lro I'LL Of az
the optloh & y, sne &c naei' tha I'1nited T % Statas %
bearing lower rate of interest than