Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1874-04-30


ton OF national bank notes and for 9th
er purposes, without nv approval In!
doing sol express my regret at not be-
ing able to give my assent to meas
ure which has received the sanction OF
a majority of-legislators chosen by the
people to make laws for their guidance,
and have studiously sought to find
sufficient argument to justify such
assent, but unsuccessfullv Practically
it is question whether the measure
under discussion would give an addi-
tional dollar to the irreaeemable paper
currency of the country or not, and
whether, by requiring three fovl,ths Of
the reserves to be retained by the
banks and prohibiting interest to be re-
ceived in the balance it might not
prove a contraction but the fact cannot
be concealed that theoretically The bill
increases the paper circulation $780,
100000, less only the amount of sre-
serves restrained from circulation by
the provision of the second section.
The measure has been supported on the
theory that it would give Increased CIR.
culation 1t is fair inference, ,thefe~
fore, that if in practice the measure
should fail to create the abundance s.-of
circulation expected oft, the friends of
the measure, particularly those out of
Congress, would clafnor for such infa-
ton as would give the expected relief
The theory, in my belief is depart
ure from the pure principles Of finance,
national interest, national obligation to
creditors, Congressional promises, party
pledges on the part Of both political
parties, and ofpersonal views and prom.
ises made by me in my annual message
to Congress and in each inaugural ad
dress
In my annual message to Congress
in December, 1869, the following pas
sage appears: 'sAmong many evils
growing out of the rebellion and not
yet referred to is that of an irredeema.
BILE currency; it is an evi! which l hope
will receive your earnest attention; it is
duty, and one of the highest duties of
the government, to secure to the citi
zens medium of exchange of fixed
unvarying value. This implies to re-
turn to a specie basis, and no substitute
for it can be devised; it should COM
mence now, and be reached at the ear
Hest practical moment consistent with
fair regard to the interest Of the debt
or class Immediate resumption, if
practicable, would not be desirable; it
would compel the debtor class to pay
beyond their contracts the premiums
Oh 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 of
gold is detrimental to the interests Of
trade. It 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 ofthe currency to be
paid and received. I earnestly recon-
mend to you, then such legislation as
will insure gradual return to specie
payments, and put: an immediate stop
to fluctuations 10 the value of currency.
I still adhere to the views then ex
pressed. As early as December 4,
1865, the blouse of Representative
passed a resolution by a vote of 144
yeas, to 6nays, concurring in the views
Of the Secretary of the Treasury, in re-
lation to the necessity Of a contraction
of the currency, with view to as early
resumption Of specie payne nts as the
business interests OF the country will
permit, and pledging cooperative &C
ton to this end as speedily as possible
The first act passed by the 41st Con-
gress, the 18th day Of March, 1869, was
as follows ."An act to strengthen the
public credit of the United States"
BE it enacted, etc., "That in order
to remove any doubt as to the purpose
of the Government to discharge all its
obligations to the public creditors, and
to settle conflicting questions and in
terpretations Of the law by virtue of
which such obligations have been con-
traeted, it is hereby provided and de-
clared that the faith of the United
States is solemnly pledged to the pay
ment in coin or its equivalent of all the
interest bearing obligations, except in
cases where the law authorizing the
issue of such obligations has expressly
provided that the same may be paid in
lawful money, or in other currency
than gold and silver; but none of the
said interest bearing obligations not al
ready due shall be redeemed or paid
before unless at such time as the United
States notes shall be converted into
coin at the option of the holder, or I'M
less at such time bonds of the United
States bearing a lower rate Of interest
than the bonds to be : redeemed can be
sold at par In coin i and the United
States also.soienauly- pledges its faith to
make provision at the earliest practi
cable period for the redemption of the
United States notes in coin. This act
still remains as a continuing pledge of
the faith of the United States to make
provision at the earliest practicable
moment for the redemption of the
United States notes in coin. A dec
laration contained in the act of June
80, 1864, created an obligation that the
total amount of United States notes
issued should never exceed 100000,
900. The amount in actual circulation
was actually reduced to $356,0O0,OO0,
at which point Congress passed the
act Of February 4, 1868, suspending
further reduction of the currency The
forty four millions have ever been re-
garded as a reserve, to be used only in
case ofemergency, such as has occurred
on several occasions, and must occur