The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1874-04-24
Pesident's Message YetOing the
Currency Bill.


l must express my regret at not being
able 10 give my assent to a measure
which has received the sanction of a ma
jority of the Legislators chosen by the |
people to make laws for their guidance, !
and l have studiously sought to justify |
such assent, but unsuccessfully. Prac-
tically it is question whether the meas |
ure under discussion would give an addi- |
tional dollar to the irredeemable paper
currency of the country or not, and
whether by requiring three-fourths OF
the reserves to be retained by banks, and
prohibiting interest to be received on
balances, it might not prove contrac-
ton. But the fact cannot be concealed
that, theoretically, the bill increases the
paper circulation one hundred millions
of dollars, less only the amount of re-
serves restrained from circulation by the
provision of the second section.
The measure has been supported on
the theory that it would give increased
circulation. It is fair inference, there
fore, that if, in practice the measure
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 infa-
ton as would give the expected relief.
The theory, in my belief, is a departure
from the true principles of finance, Ma
tional interest, National obligations to
creditors, Congressional promises, party
pledges on the part of both political
parties, and of the personal views and
promises made by me in every annual
message sent to Congrers, and in each
inaugural sddress.
In my annual message to Congress in
December, 1869, the following passage
appears.
"Among the evils growing out of the
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 a duty, and one
of the highest duties of the Government
is to secure to the citizen medium of
exchange of fixed, unvarying value
This implies return to specie basis,
and no substitute for it can be devised.
1t should be commenced now, and reach
ed at the earliest practicable moment
consistent with fair regard to the in
terost of the debtor class.
Immediate resumption, if practicable,
would not be desirable. 1t would COM
pei 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
| Fluctuation, however, in the paper value
of the measure of all values, gold, is det-
rimental to the interests of trade. 1t
makes the man of business an involun-
tary gambler, for in all sales where fu-
ture 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 insure gradual re-
turn to specie payment, and put an i'm
mediate stop to fluctuations in the value
of the currency"
l still adhere to the views then ex-
pressed. As early as December 4, 1865,
the House of Representatives passed a
resolution by vote of IA yeas to nays,
coneurring in the views of the Secretary
of the Treasury in relation to the necess-
| 4 l. L
a view to as early resumption of specie
payments as the business interests of the
country will permit, and pledging CO.
operative action to this end as speedily
as possible. The first act passed by the
Forty first Congress on the 18th day OF
March, 1869, was as follows:
'An act to strengthen the public credit
of the United States:
"Be it enacted, &C., That in order to
remove any doubt as to the purpose Of
the Government to discharge all its obli-
CATIONS to the public creditors, and to
settle conflicting questions and interpre-
tations of the law by virtue of which
such obligations have been contracted, ii
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 obligations Of the
: United States, and of all the interest
bearing obligations, except in cases
where the law authorizing the issue oi
any such obligations has expressly pro-
vided that the same may be paid in law.
fu1 money, or in other currency than
gold and silver; but none of said interest
bearing obligations, not already due
shall be redeemed or paid before rnatur-
. ity, unless at such time as United States
notes shall be convertible into coin al
the option of the holder, or unless al
such time bonds of the United States
bearing lower rate of interest than the
bonds to be redeemed can be sold al pal
J in coin. And the United States also
, solemnly pledges its faith to make pro-
visions at the earliest practicable period
for the redemption of United States
notes in COIN"
This act still remains as continuing
pledge of the faith of the United States
to make provision at the earliest practi-
: cable moment for the redemption of the
2 United States notes in coin.
A declaration contained in the act, Of
June 20, 1864, created an obligation thai
, the total amount of United States notes
issued or to be issued, should not exceed
$400,O00,00o. The amount in actua
circulation was actually reduced tc
$356,000,0O0, at which point Congress
passed the act of February 4, 1858, sus