Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1874-05-01
Message OF President Grant VetOing
t the Currency Bill.

the Currency Bill.
wAsHrNaroN, April %.
THE following is the Presidents mes
sage vetoing the Senate Currency bill:
| TO ne Senate Of ths United States:
Herewith return Senate bill No. 6l1, en-
| titled An act TO fix the amount OF United
States notes and the circulation OF National
Banks, aud for other purposes" without my
| approval. In doing so l must express my
regret at not being able to give my assent 10
a measure which has received the sanction
| OF a majority of the legislators chosen by
the people 10 make laws for their guidance,
and have studiOusly sought to find sufii-
| cient arguments TO justify such assent,
but unsuccessfully. Practically 1t Is
| question whether the measure under discus
| sion would give an additional dollar to the ir-
redeemable paper currency of the country or
not, aud whether, by requiring three-fuurths
| of the reserves to be retained by the banks
and prohibiting interest TO be received ON
the balance, it might not prove contraction.
But the fact ca lot be concealed that,
Theoretically the ;ai increases the paper cir
culation 800 000, 600, lees only the amount OF
| reserves restraiued from circulation by the
! provisions Of the second section. The meas
| ure has heen supported on the theory that II
| would give increased circulation. 1t Is a fair
| inference, therefore, that, II In practice the
measure should fail to create the abundance
! Of circulation expected of II, the friends OF
the measure, particularly those out of Con-
gress, would clamor for such Initiation as
would give the expected relief. The theory,
! In my belief, Is departure from the true
| PRINCIPLES of finance, national interest, ma
! tional obligations to creditors, Congressional
promises party pledges on the part OF both
political parties, and from the personal views
and promises made by me in every annual
message sent to Congress, and In each inaug-
ural address.
In my >annual message to Congress In
December, 1869, the following passage ap-
pears:
and not vet referred TO, Is that OF an rredeemable
| currency. 1t il an evil which hope will receive
your most earnest attention. IL Is duty, and
| one Of the highest duties Of the Government, to
! secnSe 10 the citizen a medium Of exchange OF
/ fixed, unvarying value. This implies reiurnto
specie basis and no substitute for It can be de.
| yised IL should be commenced now, and
reached at the earliest practicable moment con-
sisient with fair regard to the interests OF the
debtor class Immediate resumption, Il pract-
! cable would not be desirable. II would com
pei the debtor class to pay, beyond their contracts,
The premium on gold &C the date oI their purchase
and would bring bankruptcy and rum 70 thou
sands fluctuations, however, in the Paper value
Of the measure Of all values, gold, Is detrimental
TO the Interest OF trade. IL makes the man Of bust
ness an involuntary gambler for, In all Gales
where future payment e to be made, both parties
speculate as to what VIII he the value OF the cur
! rency to be paid and received; earnestly recon-
mend TO you, then, such legislation a. will insure
! gradual return to specie payments and put an
immediate stop to the fluctuations in the value Of
/ sill adhere to the views then expressed.
/ As early az Dec. 4, 1865, the House of Repre-
| sentatives passed a resolution, byavOte of IA
yeas TO naye, concurring in the views Of the
Secretary of the Treasury in relation to the
necessity of a contraction of the currency with
| A view to as early resumption OF specie pay
ments as the business interests Of the country
will permit, aud pledging cooperative action
to this end as speedily as possible. The first
act passed by the Forty-first Congress, on the
18th day Of March. 1862 was as follows:
dn Act TO Strengthen The Public Credit Of The
United Stdtes.
Ben enacted, etc., That, in order to remove any
donbt TO the purpose Of the Government TO dis
charge all its obligations to the public creditors,
and 10 settle conflicting questions and interpreia-
tlons Of the law by virtue Of which such obhga.
and declared that the faith Of the United States Is
sOlemny pledged to the payment in coin or ite
equivalent, of all the obligations of the United
States, and of all the interest bearing obiga-
t!ons except in cases where the law authorizing
the issue OF any such obligations has expressly
provided that the same be paid in lawful money
! or other currency thau gold aud riiveri but Hogv
OF said interest-bearing obligations not already
due shall be redeemed or paid before maturity
unless at such times the United States notes
shaIl be convertible into coin at the option OF the
holder or unless al such time bonds OF the United
States bearing lower rate OF interest than tht
bonds to he redeemed can be cold at par in coin
| and The United States also solemnly pledges III
faith to make provision at the earliest practicable
period for the redemption OF United States nole'
in coin.
This act still remains as a continuing pledgC
OF the United States 10 make provision at the
earliest practicable moment for the redemp
ton of the United States notes in coin. a
declaration contained in the act of June 20
1864. created an obligation that the tota
amount of United States notes issued or 10 bt
issued should never exceed S4O0 0O0,0 900. The
. amount In actual circulation WAS actually re-
duced to 1855 600, 600, at which point Coz gresi
passed the act of Feb. 4, 1868, suspending the
I further reduction of the currency.
The s44, 900, 600 have ever been regarded as
reserve to he used only IN case of an emer
geney such as has occurred on several occa
sions, and must occur when, from any cause
the revenues suddenly fall below the eXpendi
z tures and such a reserve is necessary becaus'
|, the fractional currency, amounting to 500,
OO0, 900, is redeemable in legal tenders on call
Y IL may be said that such return OF fractiona
I currency for redemption is improbable, bu
4 let steps be taken for return to specl
. basis and it will be'Adound that silver will
take the place of the fractional currency a
i rapidly as 1t can be supplied, When the pre-
; MUM on gold reaches a sufficiently low point
= with the amount OF United States notes TO b.
: issued permanently fixed within proper limit
and the Treasury SO strengthened US to be abl
n to redeem them in coin on demand, l
;. will be then safe to inaugnrate a system 0
= free banking, with such provisions as to max
the compulsory redemption of circulating
: notes of banks in coin or United States notes
y themselves redeemable and made equivalen
!, TO coin. As q measure preparatory to IRE
i banking, OF for. placing the Government /
a a position to redeem its notes in coin at III
> earliest practicable moment, the revenue
! of the country should be increased SO a
!. 10 pay the current expenses, provide for III
I sinking fund required by law, aud also
A. surplus TO he retained In the Treasury
gold. l am not a believer In any artifcii
4 method Of making paper money equal
u coin, when coiu is not owned or held read
= to redeem the promises to paN for pap,
7 money is nothing more than promises TO pa
u and is valuable exactly in prOportio
a to the amount of coin that 1t ca
!, be converted into. While coin Is NJ
a. used as a circulating medium, or the Gu
1t rency OF the country is not convertible int
Is IL at par, II becomes an article OF commerce
L. much as any other product. The surplus wi
1i seek foreign market as will any other su
~ plus. The balance of trade has nothing TO
!. with the question. The duties on imports, b
ing required in coin, create a limited demau
5 for gold, and about enough to satisfy that d
In maud remains In the country, To increas
g this supply see no way open but by the Go
T. ernment boarding through the means aboN
-ee given, and possibly by requiring the Nations
10 Banks to aid.
Dr. 1t is claimed by the advocates of the measul
he herewith returned that there is an unequ
A. distribution of the banking capital of Il
x country. i was disposed to give great weigl
y to this view of the question at first, but z
p reflection, II will be remembered that the
still remains $4,O00,000 Of authorized banl
note circulation assigned TO States having le
than their quota, not yet taken. In additiC
to this, the States having less than their quo
of bank circulation have the option of So
n 600 000 more, to be taken from those Stat
"a having more than their proportion. VIII