Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1874-04-30
The Veto Message.

sage vetoing the Senate currency Dill:
IN re Senate of the United States:
Herewith / return Senate bill No. 617, en-
titled An act to fix the amount of United
states notes and the circulation of National
Ranks and for other purposes" without
INV approval. In doing SO / must express
nv regret at not being able to give my
assent to measure which has re-
ceiyed the sanction of majority OF the legis-
Iators chosen by the people to make laws for
their guidance, and have studiously sought
In And sufficient arguments to justify such
assent, but unsuccessfully. Practically it is 9
question whether the measure under discus
aion would give an additional dollar to the IT.
redeemable paper currency of the country or
not, and whether, by requiring three -fourths
of the reserves to be retained by the banks
and prohibiting interest to be received on
the balance, it might not prove contrac-
ten. But the fact cannot he concealed
that, theoretically the bill increases the paper
circulation s LOG, DOC, 600, less only the amount
of reser YES restrained from circulation by the
provisions of the second section. The meas
ure has been supported on the theory that 1t
would give increased circulation. 1t is fair
inference, therefore, that, IL 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 tor such imitation as would give
the expected relief. The theory, in my belief,
is departure from the true principles of
finance, national interest national 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 Con-
gress, and in each inaugural address.
In my annual message to Congress in De-
cember, 1868, the following passage appears:
Among the evils growing out OF the rebellion
and not yet referred to- Is that OF rredee mable
ii Ia wi will We
your most earnest attention. 1t is duty, and one
Of the highest duties OF the Government, to Sc
cure to the citizen medium OF exchange OF fixed.
unvarying value. This implies return TO a
specie basis, and no substitute for it can be de-
yised Ii should be commenced row, and reached
at the earliest practicable moment consistent wi tn
fair regard to the interests of the debtor
class. Immediate resumption, II practica BILE
would not be desirable 1t would CON-
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 thou
sands. Fluctuations, however, In the paper value
OF the OF all values, gold, is detrimental
TO the interest OF trade II makes the man of BUSH
ness IN involuntary gambler, for, In all sales
where future payment Is to be made, both parties
speculate a. to what will be the value OF the cur
rency TO be paid and received. earnestly recon-
mend to you, then, such legislation as will insure
agradual return TO specie payments and put an
immediate stop to the fluctuations in the value OF
currency.
still adhere to the views then expressed.
fentatiyes passed resolution, by vote of IA
yeas to nays concurring In the views of the
Secretary of the Treasury in relation to the
necessity of contraction of the currency with
view TO as early resumption of specie pay
ments as the business interests OF the country
will permit, and pledging cooperative action
to this end as speedily as possible The first
act passed by the Forly-fret Congress, on the
18th day Of March, 1869, was as follows:
An Act 10 Strengthen hls Public Credit OF the
United States:
Be u enacted, etc, That, in order to remove any
-dnnht "a ~ tte puTUUFB OF the Government to dis
charge all its obligations to the public creditors
and to settle conflicting questions and interpreta-
tons Of the law by virtue Of which such obliga-
tons have been contracted, it il hereby provided
and declared that The faith OF the United States is
solemnly pledged TO the payment in coin or It's
equivalent, of all the obligations OF the United
States, and OF all the interest bearing obliga-
tons, except In cases where the law authorizing
the issue OF any such obligations has express
" provided that the same be paid in
lawful money, or other currency than gold and
silver; bnt none Of sad interest b. caring obliga-
tons not already due shall be redeemed or paid
before maturity unless at such times the United
States notes shall be convertible into coin at the
option OF the holder, or unless at such time bonds
OF the United States bearing lower rate Of inter-
est than The bonds to be redeemed can be sold NJ
par In coin; and the United States also solemuly
pledges it's faith to make provision at the earliest
practicable period for the redemption Of United
States notes in coin.
This act still remains as continuing pledge
OF the United States to make provision at the
earliest practicable moment for the redemp-
uon OF the United States notes i'm coin
declaration contained in the act OF June 20,
lo64, created an obligation that the total
amount OF United States notes issued or 10 be
issued should never exceed $500, 600 600. The
amount in actual circulation was actually re-
daced to 356,OOO,0O0, at which point Con-
gress passed the act OF Feb 4, 1868, suspend
10 M ~ ar aA,t<f 90 q
The "a, 100000 have ever been regarded as
reserve 10 be used only In case of an emer.
gency such as has occurred on several occa-
slons, and must occur when, from any cause,
the revenues suddenly fall below the expendi.
lures, and such reserve Is necessary because
me fractional currency, amounting to $780,
WOOOO Is redeemable in legal tenders on call.
IL may be said that such return OF fractional
currency for redemption is improbabl but
let steps be taken for return TO a specie
oasis aud it will be found that silver will
take the place Of the fractional currency as
rapidly as 1t can be supplied. When the
premium on gold reaches sufficiently low
point, with the amount of United States notes
70 De Issued permanently fixed within proper
iimits, and the Treasury SO strengthened as TO
pe sple 10 redeem them i'm coin on demand, ii
wiil be then safe to inaugurate a system Of
nee banking, with such provisions as 10 make
inc compulsory redemption of circulating
VI pauhb III SDib VI ODlLsu StAbtr HONet,
themselves redeemable and made equivalent
70 com. AS measure preparatory to free
banking, or for placing the Government
position 10 redeem its notes In
. .. at the earliest practicable moment,
.ne revenues OF the country should be in
ERASED SO as TO pay the current expenses,
provide for the sinking fund required by law,
ana also surplus to be retained In the Treas
IN gold am not believer in any arti-
lciai method OF making paper money equal TO
ooi, when coin is not owned or held ready 10
redeem the promises TO pay; for paper money
hothing more than promises TO pay,
ana Is valuable exactly In proportion
70 The amount of coin that 1t can
pe converted into. While coin is not
used as circulating medium, or the cur
..ney OF The country Is DOT convertible into II
par, IL becomes an article Of commerce as
mueh US any other product. The surplus viii
sex foreign market as will any other sur
Plus. The balance Of trade has nothing TO do
WIN the question. The duties on imports, be-
ng required In coin, create limited demand
~. goid, and about enough to satisfy that de-
.Isa oo remains In the country. To increase
Si's supply see no way open but by the
government boarding through the means
Tsse given, and possibly by requiring the
National Banks to aid.
a.. = y claimed by the advocates of the measure