The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1874-05-01
THE VETO.
President Grants Message of DisapprO-
val.

Washington, d. c., April %.
To the Senate Of the United States
Herewith I return senate bill
number GIT, 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, 1 must ex.
press my regret at not being able
to give my assent to 8 measure
which has received the sanction of
a majority of the legislators chosen
by the people to make laws for
their guidance, and have studious.
ly sought to find sufficient argu-
ments to justify such assent, but
unsuccessfnlly. Practically, it is a
question whether the measure I'M
der 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 the bal
ance, it might not prove q contrac-
ton. But the fact cannot be con-
cealed that theoretically the bill in
creases the paper circulation one
hundred million dollars, less only
the amount of reserves restrained
from circulation by provisions of
the second section. The measure
has been supported on the theory
that it would give increased circu-
latiOn. 1t 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 Initiation as would
give the expected relief. The theo-
ry, in my belief, is a departure
from the true principles of finance,
national interest, national obliga-
lions 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 congress and in each inau-
gural address. In my annual mess
age 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 cur
rency. 1t is an evil which l hope
Will receive your most earnest at
tention. 1t is a duty, and one of
the highest duties of tho govern
ment, to secure the citizen a medi.
um of exchange of a fixed, unvary-
ing value. This implies a return to
a specie basis, and no substitute for
it can be devised. It should be
commenced now and reached at the
earliest practicable moment consist
ent with fair regard for the inter-
ests of the debtor class. Immediate
resumption, if practicable, would
not be desirable; it would compel
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. FIuctuation, how
ever, 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 in
voluntary gambler, for in all sales
where future payment is to be
made, both parties speculate as to
what willtbe the value of currency to
be paid and received. l earnestly
recommend to you, then, such leg
islation as will insure a gradual re-
turn TO specie payments, and put
an immediate stop to fluctuation in
the currency"
l still adhere to the views then
expressed. AS early as December
4, 1865 the house of representatives
passed 3 resolution, by vote of
IA yeas to 6 nays, concurring in
the views of the secretary of the
treasury in relation to the necessity
of contraction of the currency
with view 10 as early a resump-
ton OF specie payments as the bus
mess interests of the country will
permit, and pledging cooperation
and EctiOn to this end as speedily
as possible. The first act passed by
the forty-first congress-, on the 1StS
day of March, 1869, was as follows t:
Gan act to strengthen the public
credit of the United States. BE it
enacted, ETC., That in order to re-
move any doubt as to the purpose
of the government to discharge all
its obligations 10 the public credit
ors, and to .settle conflicting ques-
tions and interpretations of the law
by virtue of which such obligations
have been contracted, it 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 authorising
the issue of any such obligations
has expressly provided that the
same may be paid in lawful money,
or ia other currency than gold and
silver, but none of said interest
bearing obligations, not already
due, shall be redeemed or paid be-
fore maturity, unless at such a time
the U. S. notes shall be convertible
into coin at the option of the hold
err; or unless 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,
and the United States also solemnly
pledges its faith to make provis-
ion, at the earliest practicable mo-
ment, for the redemption of the
United States notes in coin"
This act still remains as 8 con-
tinuing pledge of the faith of the
United States to make provision,
at the earliest practabIe moment,
for the redemption of the United
States notes in coin. A declaration
contained IN the act OF June %,
1864, created an obligation that the
fatal amount of United States notes,
issued or to be issued, should never
exceed S400, 100000. The amount in
actual circulation was actually re-
daced to S356 600 O0l at which noint
congress past the act of February 4,
1868, suspending the further con-
traction of the currency. The $44,-
COO. 900 have ever been regarded as
a reserve, 10 be used only in case
of an Emergency, such as has oe-
Cured on several oecosious, and |
must occur when, from any cause. |
revenues fall below expenditures,
and such q reserve Is necessary, be-
cause the fractional currency.