Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1874-05-09
THE VETO MESSAGE.
The Presidents Reasons for Vetoing the
Currency Bill.


Currency Bill.
The following is the Presidents |
Financial Veto Message:
To the Senate of the United States:
Herewith return Senate Bill No.
GIT, entitled AN act to fix the amount
of United States notes and the circula-
ton of national banks, and for other
purposes" without my approval. In
doing so 1 must express my regret at
not being able to give my assent to
measure which has received the sane
ton of a majority of the legislators
chosen by the people to make laws for
their guidance, and l 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 irredeemable
paper currency of the country or not,
and whether, by requiring three-fourths
of the reserves to be retained 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 paper circulation
one hundred millions of dollars, 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. It is fair inference,
therefore, that if, in practice, the mea-
sure 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 would give the expected
relief. The theory, in my belief, is a
departure from the true principles of
finance, national interest, national obli-
cation to creditors, Congressional
promises, party pledges on the part of
both political parties, and of the per-
sonal views and promises made by me
in every annual message sent to Con-
gress, and in each inaugural address.
In my annual message to Congress in
December, 1869, the following passages
appear: Among the evils growing out
of the rebellion and not yet referred to,
is that of an irredeemable currency. 1t
it is an evil which hope will receive
your most earnest attention. 1t is a
duty, and one of the highest duties of
the Government, to secure to the citi-
zen medium of exchange of fixed, I'M
varying value This implies. sm lsstlirns
q sps AMI ii IL E,Ibstifnte for
il can be devised should ba GEM
nonee3 now and fe&chel as <l}tj earliest
Il I'LL blA moment coiaaiste1 g nj kh ii
X fair regard to tie i,atefest 0f the Etobtor
c.ass. Immediate resump Stiioh, X pfsc-
ticable, would not be desirable. It
would compel the debtor class to pay
beyond their contracts the premium
on gold at the date of their purchase,
and would bring bankruptcy and
ruin to thousands. Fluctuations, how
ever, in the paper value of the measure
of all values-gold-is detrimental to
the interest of trade. It makes the
man of business an involuntary gam
bier, for in all sales where future pay
ment is to be made both parties specu-
late as to what will be the value of the
currency to be paid and received.
earnestly recommend to you, then, such
legislation as will insure gradual re-
turn to specie payments and put an i'm
mediate stop to fluctuations in value of
currency" I still adhere to the views
then expressed. AS early as Dec, 1865,
the House of Representative passed a
resolution, by a vote of LA yeas to 6
nays, concurring in the views Of the
Secretary of the Treasury in relation
to the necessity of contraction of the
HrrIth viz fn
sumption of specie payments as the
busin ess interests of the country will
permit, and pleading cooperative action
to this end as speedily as possible. The
first act passed by the Forty-frst Con-
gress, on the 18th day of March, 1869,
was as follows can act to strengthen
the public credit of the United States
Be it enacted, &C., that in order tc
remove any doubt as to the
purpose of the Government to dis
charge all its obligations to the public
creditors, and to settle conflicting ques
tons and interpretations of the law by
virtue of which such obligations have
been contracted, it is hereby provided
and declared that the faith of the United
States is solmenly pledged to the, pay
ment in coin, or its equivalent, of al
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 obi
cations has expressly provided that tn
same may be paid in lawful money, O
in other currency than gold and silver
but none of said Understanding obi
cations not already due shall be re
deemed or paid before maturity unless
at such times as the United States note
shall be convertible into coin at tn
option of the holder, or unless at sue
time bonds of the United States bearin
lower rate OF interest than bonds to b
redeemed can be sold at par in coir
And the United States also solemn
pledges its faith to make provision 6
the earliest practicable period for th
redemption OF United States notes j
coin.
The act still remains as continuin
pledge of the faith of the United State
to make provision at the earliest pra
ticable moment for the redemption
the United States notes in coin.
declaration contained in the act of Jun
20, 1864, created an obligation that Il
total amount of United States not
issued, or to be issued, should new
exceed $400,000,000. The amount
actual circulation was actually reduce
to 1856, 000,0 900, at which point Co
gress passed the act of Feb. 4, 1856
suspending the further reduction of Il
currency. The forty-four millions b
ever been regarded as reserve, to
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