Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1874-04-25
The Finance Bill Vetoed.

accompanied with message setting
forth his reasons for Withholding his
signature, as follows:
The theory, in my belief, Is de-
parture from the true principles of
finance, national interest, national
obligation TO creditors, Congression-
al promises, party pledges on the
part of both political parties, personal
views and promises made by me in
my every annual message sent to
Congress, and each inauguaral adj
dress. In my annual message to
Congress in December, 1869, the fol-
lowing passage appears:
"Among the evils growing out Of tlte rebel
lion, and not yet referred to, is that of an IT.
Tedeemable currency. tits an evil which
hope will receive your most earnest attent-
ion. 1t is duty, and one of the highest duties
of Government, to secure to the citizens a
medium of exchange of fixed, unvarying
value. This implies q return to specie basis
and no substitut e for it can be offered. 1t
should be commenced now and reached at
the earliest possible moment, consistent
with fair regard to the interest of the debtor
class. Immediate resumption, if practicable,
would not be desirable; it woald compel the
the debtor class to pay beyond their con
tracts-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, detrimental to the interests of
trade. 1t makes the man of bushes an in
voluntary gambler, for, in all sales where
future payment is to be made, both parties
speculate as TO hat will be the value of the
currency to be paid ana received. L earnest
iy recommend TO You, then, such legislation
as will ensure gradual return 10 specie pay
ments, and put an immediate stop to fiuctuil-
tons in the value of currency"
still adhere to the views express
ed. AS early as December 4, 1868,
the House of Representatives
passed resolution, by vote of IA
yeas to 6 nays, concurring in the
views Of the Secretary of the Treas
ury in relation to the necessity of IL
contraction of the currency, with Il
view to as early a resumption of spe-
Gle payments as the business of the
country will permit, and pledging CO.
operative action to this end as speed
lily rs possible. The first act passed
by the Forty-first Congress, on the
18th day Of March, 1869, was as fol-
lows:
AN act to strengthen the public credit of
the United States Be 1t enacted, ETC., that, in
order to remove any doubt as to the purpose
of the General Government to discharge all
It's obligations to the public creditors, and to
settle convictions and interpretations of the
law by virtue of which such obligations have
been contracted, 1t 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 obligations of the Unit.
ed states, and Of all the interest bearing obi
cations, except in cases where the law uutho.
srizing the issue OF any such obligations has
expressly provided that the same may be
paid in lawful money or in other currency
than gold and silver; but none of the said in
terest bearing obligations not already due
shall be redeemed or paid before maturity
unless at such times as the Uuited States
notes shall be convertible into coin at the
option CT the holder, OF unless at such time
the bonds of the United States bearing Il
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 provision, at the earliest practicable
period for the redemption of United States
notes i'll COIN"
This act still remains, as a contin-
uing pledge of faith of the United
States to make provision, at the earli-
est practicable moment, for the re-
demption Of the United States notes
in coin.
As measure preparatory to free
banking or for placing the Govern
ment in condition to redeem its notes
in coin at the earliest practicable mo-
ment, the revenues Of the country
should be increased so as to pay cur
rent expenses, provide for the sinking
fund required by law, and also the
surplus to be retained in the Treasury
in gold. J. am not believer in any
artificial method Of making paper
money equal to coin, that is, not own
ed or held ready to redeem the prom
Use to pay ; for paper money is moth
ing more than promises to pay, and
is valuable exactly in proportion to
the amount of coin that it can be con-
yerted into. While coin is net used
as circulating medium, or the cur
rehcy OF the country is not converta.
bic into it at par, it becomes an arti-
Gle ofcommerce as much as any other
product. The surplus will seek 4
foreign market, as will any other sur
plus, for the balance of trade has
nothing to do with the question
Duties on imports, being required in
coin, create limited demand fol
gold. About enough to satisfy tht
demands remain in the country. TX
increase this supply, l see 10 othej
way open but by Government hoard
ing through the means above given
and possibly by requiring the Ma
tional Banks to aid. 1t is claimed
by the advocates Of the measure here
with returned, that there is unequa
distribution Of banking capital of TIN
country. | was disposed to Civ,
great weight to this view of the quos
ton at first; but, on reflection, it will
he remembered that there still re
mains $4,000,000 Of authorized bank
note circulation, assigned to State
'having less than their quota, not we
taken. In addition to this, State
having less than their quota of banl
circulation have the option of S23
100000 more to be taken from thos
States having more than their proper
ton. When this is all taken up, 0
when specie payments are fully restol
ed, or are in rapil process of restorS
ton, it will be time to consider til
question gilmore currency.
(Signed) u. S. GRANT.
Evno;,t;,o NTo,a.no Ill On .n1l