The Portland daily press., 1874-05-11
THE PRESIDENTS VETO.
He COrrects what He Considers
Misrepresentation"

INDIANAPoLIs, May 9.-Ths Journal this
morning publishes letter from Senator Nor
ton, correcting misapprehensions regarding the
vetoed currency bill. He denies that the bill
authorizes new emission OF United States
notes. He says:
"A section Of the bill fixes the maximum
amount OF United States notes at $500 900, 900.
ny the act of june 80, 1864, it was declared
that the United States notes in Circulation
SHOULD sne not exceed $40O, OO0, 900. On March 4,
1905, an act was passed forbidding . further is
sue OF United States notes, the amount then
outstanding being $356,O0O,O 900. The difference
between this amount and $4O0, 900, 900. (S44.-
OOO,OO0,) the successive Secretaries of the Treas.
ury and the President have assumed the +. ght
to reissue at their discretion. This right to re-
issue has been denied by many lawyers in Con-
gress and out of it. The first section of the
bill, therefore, declares the law to be what the
President and Secretary have assumed it to be-
1t was the wish of the friends Of the bill that
the "a, 900 900 should not be put in circulation.
The other section of the bill authorizing an
increase of the bank circulation to SAG, 900
less than their proportion upon the basis of the
act OF 1860, was the first steps that had been
taken towards the resumption of specie pay
ments by Congress. AThe amount was $50, 0O0,-
600 short of the equalizing distribution under
the act OF 1865. The New England States were
$l10,0O0,000. and the other eastern States had
an excess of nearly ST., 0O0, OOO Most of the
friends OF the bill desired the restriction taken
off AZ to the amount and locality of the circu-
lation, so that the people should be left free to
establish national banks wherever and when
ever their local necessities demanded them.
That the bill would have produced some con-
traction of the stock market in New York is
true, but it is well understood that the receives
of the southern and western banks kept in New
York have been used by the New York banks
almost exclusively upon cal to dealers in
stocks, and have thus stimulated an unwhole-
some speculation and have been of very little
benefit to the mercantile or manufacturing
communities. This bill in effect requires the
banks outside of the redemption cities to keep
three-fonrths of their reserves at home and
would have drawn some millions fIom the stock
market In New York, which would strengthen
the banks to which they belonged, and would
have produced contraction in a quarter where
the contraction would do no harm.
VI the act requiring the United States to
make provision at the earliest practicable De-
riod for the redemption of its notes in coin, 1
deny the binding force of that pledge, but the
question as to the practicable period remains Is
open as upon the day it was passed. That the
government is pledged to redeem its legal ten
der notes in coin and proposes to do so should
ever be kept in view, yet that period may not
be deemed practicable when there is q great
stagnation in business, much labor unemployed
the revenues largely falling off and much dis
tress and suffering in every part of the coun.
try. o. P. MORTON.