Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1874-04-29
The Presidents Veto.
The following is the text Of President Grants
message vetoing the imitation bill


notes and the circulation Of national banks and
for other purposes, without my approval. In
doing NO must express my regret at not being
able 10 give my assent 10 measure which has
received the sanction Of majority of the legis-
lators chosen by the people 10 make laws for
their guidance, and have studously sought
10 find sufficient arguments to justify such
assent, but unsuccessfully. Practically it is a
question whether the measure under discussion
would give an additional dollar to the irredecm-
able paper currency Of the country or not, and
whether, by requiring three fourths of the re-
serves to be retained by the banks and prohib-
iting interest to bc received on the balance, it
might not prove contraction.
DEPARTURE FROM THE TRUE PRINCIPLES or
FINANCE.
But the fact cannot be concealed that, theo-
reticaly, the bill increases the paper circulation
s l00, 600 ,000 less only the amount Of reserves
restrained from circulation by the provisions Of
the second section. The measure has been
supported on the theory that it would give in.
creased circulation. 1t is fair Inference
therefore, that IL in practice the measure should
fail to create the abundance Of circulation ex-
pected Of it,, the friends of the measure, par
ticularly those out Of Congress, would clamor
for such imitation as would give the expected
relief. The theory, in my belief, is a depar-
ture from the true principles Of finance, ma
tiono interest, national obligation To creditors,
promises, party pledges on the
part Of both political parties, and of the per-
sonal views aud promises made by me in every
annual message sent TO Congress, and in each
inaugural address.
ANNUAL RECOMMENDATIONS.
In my annual message to Congress in Decem-
Der, 1859, the following passages appear
Among the evils growing out Of the rebellion
and not yet referred to- Is that u irredeemable
currency. 1t is an evil which hope will receive
your most earnest attention. IL Is duty and one Of
the CHEST duties Of the government to secure to the
citizen q medium OF exchange Of fixed, unyarying
value. This implies a return 10 specie basis, and
no substitute for 1t be devised. IL should be
menced now and reached at the earliest practicable
moment consistent with fair regard 70 the interest
Of the debtor class. Immediate resumption If pract
cable, would not be desirable. II would compel the
debtor elias, 10 pay beyond their contracts the prem
ium gold at the date Of their purchase, and would
bring bankruptcy and ruin to Thousands. fluetua
tons, however IN the paper value Of the measure Of
trade. II makes the man OF business an involuntary
gambler for In all sales where future payment is to
be made both parties ,pecuae as q I what viii oe the
earnestly recommend to you then such legislation as
will Insure gradual return 70 specie payments, and
put an immediate stop to the fluctuations In value Of
currency.
ToRxER yIKws UNCHANGED.
still adhere TO the views then expressed.
As early as December 4, 1865 the House Of
Representatives passed a resolution, by vote
Of one hundred and iorty-four yeas to six nays,
concurring in the views Of the Secretary OF
the Treasury in relation to the necessity Of a
contraction Of the currency, with view to as
early resumption of specie payments as the
business interests Of the country would permit,
and pleJging cooperative action to this end as
speedily as possible.
CONGRESSIONAL PLEDGES.
The first act passed by the Forty-f first Con-
gress, on the 18th day Of March, 1859, was as
follows.
An Act 10 SrssgiAen ns P4She crsdh Of hs United
States
Be II enacted, etc. That in order TO remove any
doubt as 70 the purpose OF the government to dis.
charge all It's obligations 10 the public creditors and
10 settle conflicting questions and Interpretations Of
the law by virtue OF which such gatons have been
contracted 1t is hereby provided and declared that
the faith Of the United States h solemny pledged to
the payment in COIN or Us equivalent OF All the ooli
cations Of the United States and Of all the interest
bearing obligations, except IN cases where the law
authorizing the issue of any such obligations has ex-
pressly provided that the same may be paid In lawful
money, or in other currency than gold and silver
but none Of said nterestbearing obligations not al
ready duo shall be redeemed or paid before maturity
be convertible into coin at the option Of the holder
unless at such time bonds Of the United states bear
ing lower rate Of interest than bonds to be redeemed
can be sold at par In coin and the United States also
soemnly pledges its faith to make provision at the
earliest practicable period for the redemption Of
United States notes In coin.
This act still remains as a continuing pledge
of the faith of the United States to make pro-
vision at the earliest practicable moment for the
redemption of the United States notes in coin.
THE LEGAL RESERVE.
A declaration contained in the act Of June
20, 1864, created an obligation that the total
amount of United States notes issued or TO be is.
sued should never exceed S40O, ,O00,O 900. The
amount in actual circulation was actually
reduced to 1856 900 900, at which point
Congress passed the act of February 4,
1868, suspending the further reduction OF
the currency. The ga, 900 900 have even been
fegarueu as 'eSe''e '" W u'od oHiS ~ '''e
oil an emergency suon as nSs o0ou''eu y" 'o'
erai occasions anu must oceu, "ne"' "oni any
cause revenues suuueniy iail pe'o" eApenui' p
lures and such reserve Is necessary, Dceause
the fractional currency amoun'ing W S'V,-
ooo,ooo, is reoeemaDie 10 iegai "nuer o'' '"ii ,
-. n A. IL. at ftAn nj
1t may De said that sucn return ot 'iac'iona'
currency Tor redemption Is i'npoSsioie ou' ie,
steps be taken iof areturn 70 spec'e uasN' anu
1t Will DC iound 'na' s'i'ef VIII, AAe 'ne pace
of fractional currency as rap'u'y ~ =" eau W
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