The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1874-05-01
OUR NATIONAL FINANCES.
The Presidents Veto OF the Currency
nfll.


Herewith 1 return senate bill number 6l1 /,
entitled - An Act to fix the amount OF United
states notes and circulation OF national banks
and for other purposes, - without my approval.
In doing so, must express my regret nj not be-
ing able to give my assent 10 u measure which
has received the sanction OF a majority OF the
legislators chosen by the people 10 make laws ioi
their guidance. have studiously sought 10 Ind
sufficient arguments TO Justify such assent, but
unsuccessinlly. Practically, II Is question
whether the measure under discussion would give
additional dollar 10 the irredeemabe paper
currency OF the country not, and whether, by
requiring three-fourths OF the reserves 10 he re-
tanned by banks, and prohibiting interest 10 De
received on the balance, IL might not prove con-
traction But the fact cannot he concealed that
theoretically the bill increases the paper circula-
ton one hundred millions OF dollars, less only
the tmount OF reserves restrained from circula-
tion by provisions of the second section.
The measure has been supported on the theory
that II would give increased circulation. III Is "a
fair inference, therefore, that u In practice the
measure should tail 10 create the abundance oil
circulation expected of it, the friends OF the mea
sure, particularly those out OF Congress, would
clamor Tor such Initiation would give the eN-
pected relief The theory, in my belief, Is de-
parture from the true principles OF haance, ma
tonal interest national obligations TO creditors,
congressional promises, party pledges on the part
OF both political parties, and OF the personal views
and prom SEES made by me in every annual mes
sage sent 10 Congress and In each inaugural adj
dress. In my annual message 10 Congress In
December, 1859, the following passages appear;
Among the evils growing out OF the rebel
deemable currency IL is an evil which hope
will receive your most earnest attention. IL is a
duty, and one OF the highest duties, OF the Gov
ernment TO secure the citizen medium of ex-
change of fixed, unvarying value This implies
return 10 specie basis, and no substitute tor II
can be devised. IL should be commenced now
and reached at the earliest practicable moment
consistent with fair regard 10 the interests OF
the debtor class. Immediate resumption, If
practicable, would not be desirable; II would
compel the debtor class to pay beyond their con-
Iraef he HYaF IN Onl "a ha al hei
purchase, and would bring bankruptcy and ruin
to thousands.
Fluctuations, however, in the paper value OF
the measure OF all values, gold, is detrimental TO
the interests of trade. IL makes the man of bust
ness an involuntary gambler. for In all sales
where future payment is TO be made, both parties
speculate TO what will be the value OF the cur
rency to be paid and received.
~ earnestly recommend 10 you. thsn, such
legislation rs will insure gradual return TO spe-
Gle payments and put AN immediate stop 10 hue
tuations in the currency
still adhere to the views then expressed. AS
early rs December 4, lc65, the House OF Repre-
sentatiyes 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 neces-
sity of a contraction the currency, with "A view
to as early resumption OF specie payments as
the business interests of the country Will permit,
and pledging cooperative action TO this end
speedily as possible. The first act passed by the
torty-hrst Congress, on the 18th day OF March,
1859, was follows:
IAN Acr 10 strengthen the public credit OF the
United states. BE II enacted, etc, That in order
to remove any doubt to the purpose of the
Government 10 discharge all its obligations to the
public creditors and 10 settle conflicting ques-
tIons and interpretations of the law by virtue of
which SUCH obligations have been contracted, IL
Is hereby provided and declared. that the faith
of the United states is solemnly pledged to the
payment in coin. or its equivalent, of all the OBJ
legations OF the United states and of all the i'm
tsrest- bearing obligations, except in cases where
the law authorizing the issue OF any such obliga-
tions has expressly provided that the same may
be paid in lawful money, or in other currency
than gold and silver; but none OF said interest
bearing obligations not already due shall be re-
deemed or paid before maturity unless AT such
time the United states notes shall be convertible
into coin at the option OF the holder, unless nc
such time bonds of the United States barring a
lover rate OF interest than the bonds TO be re-
deemed can be sold at par In coin And the United
states also solemnly pledges It's faith 10 make pro-
visions ut the earliest practicable period for the
redemption of United State notes in coin -
This act still rsmains a continuing pledge of
the faith of the United States TO make provision,
mt the earliest practicable moment, for the re-
demption OF the United States notes in coin.
declaration contained IN the act OF june p,
ls6i, created an obligation that the total amount
of United states notes, issued or TO be
Issued, should never exceed si00, 10000. The
amount in actual circulation was actually re-
duced to s-J5, coo. 600, at which point Congress
passed the act OF February I, ls6s, susp,nding
the further reduction the currency. The SA,-
10000 have ever been regarded as reserve, To
be used only in case Of an emergency, shch as
has occurred on several occasions and must oc-
cur when, from any cause, revenues fall below
expenditures; and such a reserve - necessary,
because the fractional currency, amounting to
go, OtO, 90, is redeemable In legal tenders
call. u may be said that such return OF frac-
t'onal currency for redemption is impossible,
but let steps be taken for return TO specie pay
ment basis and II Will be found that silver will
take the place of fractional currency rapidly
as II can be supplied.
When the premium on gold reaches a sufficient
ly low point, with the amount OF United states
notes 10 be issued permanently within proper
limits, and the Treasury 50 strengthened rs to be
able 10 redeem ths IN in coin on demand, II will
then be safe to inaugurate "A system off bank
ing, with such provisions a. TO make compulsory
the redemption of the circulating notes of banks
in coin or United states notes, themselves re-
deemabe in and made equivalent to coin. AS a
measure preparatory To free banking, ar for plac-
ing the Government In a condition 10 r.leem its
notes in coin ut the earliest practicable moment,
the revenues of the country should be increased
so as TO pay the current expenses, provide for
the sinking fund require by law and also a sur
plus to be returned to the Il e,sury In gold
am not believer In any artificial method of
making paper money equal TO coin when coin s
not owned or held ready To redeem the promises
TO pay; Tor paper money IL nothing more than
promises TO pay, and IL valuable exactly in pro-
portion TO the amount Of coin that IL can be con-
verted into. While coin Ia notus as a circulat-
ing medium or the currency of the country Is
not convertible into Il at par, II becomes arti-
Gle Of commerce ~ much rs any other product
The surplus will seek foreign market, as will
any other surplus. The balance of trade has
nothing to do with the question 1he duties on
imports being required in coin. create limited
demand for gold, and about enough to satisfy that
demand remains In the county. To increase this
supply see no way open but by the Govern
ment boarding, through the means above given,
ard, possibly, by requiring the national banks TO
Aid.
Il is claimed by the advocates OF the measures
herewith returned, that there is an unequal dis
of the banki ing capital Of the country.
| was disposed to give great weight to this view
OF the question at first, but on reflection IL will toe
that there still remains four millions
of dollars of authorized bank note circulation
signed 10 States having less han their quota of
bank circulation. and they have the option OF
twenty five millions more 10 be taken from those
states having more than their proportion. When
this is all taken up. or when specie payments are
fully restored or are in rapid process of restora-
tion will be the time to consider the question Of