The Superior times. [volume] (Superior, Wis.) 1870-1912, 1874-05-02
THE VETO MESSAGE.
President Grants Views on the Finan.
cial Bill.
Full Text of the Document.

Below we present to our readers the
message of the President returning to
the Senate, the finance bill. 1t will be
seen that the President reiterates in
this paper views enunciated by him In
former state papers. This action on
the part of the President leaves the
matter in the hands of Congress, to de-
wise some other means of financial re-
lief
To the Senate Of the United States
Herewith | return Senate bill GIT, entitled
An act to fix the amount of United States
notes and the circulation OF the national banks
and for other purposes" without my approval
In doing so l must express my regret at not
being able to give my assent to a measure
which has received the sanction of majority
of the legislators chosen by the people to
make laws for their guidance, and have stu
diously sought to find sufficient arguments to
justify such assent, but unsuccessluly. Prac-
tlcally, this question whether the mea sure
under discussion would give an additional
dollar tothe inodeemable paper currency of
the country or not AID whether by requiring
three-fourtns of the reserve to be retained by
banks, and prohibiting interest to be received
| on balances 1t might not prove contraction
| bill. The fact cannot be concealed that, theo-
| retically, the bill Increases the paper circula-
| ton 500, 0G0 900, less only the amount OF re-
serves restrained from circulation by the pro-
| visions of the second section. The measure
| mas been supported on the theory that it
would give increased CIRCULATION. 1t is fair
| inference, therefore, 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 Con-
| gress, would clamor for such infltio as
would give relief. The theory, in my belief.
| is departure from the true principles of
| finance, national interest, national obligation
| 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 Con
| gress, and In each inaugural address. In nv
| annual message to Congress in December,
| 1867, the following passages appear:
Among the evils growing out of the rebel
| lion, and not yet referred to, is that of ire
| deemaDle currency. 1t is an evil which | hope
Will receive your most earnest attention, II
| is duty, and one Of the highest duties of
| the government, to secure to the citizen a
| medium OF exchange OF fixed, unvarying value.
| This implies return to a specie basis, and
| no substitute for it can be devised. 1t should
| be commenced now, and reached at the ear-
est practicable moment consistent with a fair
| regard TO the interest of tie debtor class.
Immediate resumption. If practicable, would
not be desirable. 1t would compel the debtor
| class to pay beyond their contracts the pre-
MUM on gold at the rate of their purch ase,
and would bring bankruptcy and ruin to
thousands. Fluctuations, however, in the
paper value of the measure of all values
gold, is detrimental to the interests of trade
1t makes the man OF business involuntary
gambler, for in all cases where future paw
ment is to be made both parties speculate as
to what will be the value of the currency to
be paid and received. | earnestly recommend
| to You, then, such legislation as VIII insure
oil
an immediate stop TO the fluctuations III the
value of currency.
| still adhere to the views then expressed
As early as Dec, 4, 1865, the House OF Repre-
sentatlveS passed a resolution, by a vote of
l A yeas to nays, coDcurring In the views of
the Secretary Of tn Treasury in relation to
the necessity OF a contraction Of the currency
with the view to as early a resumption of
specie payment as the business interests of
the country Will permit, and piedging COOP
eratlve action to this end speedily as posi-
bic. The first act passed by the Forty first
Congress, on the 18th day OF March, 1869, was
as fellows
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 govern
ment to discharge all It's obligations to public
creditors and to settle the conflicting ques-
tons ana interpretations OF the law of va iues
of which such obligations have been con
tracted, 1t is hereby provided and declared
that the faith of the United States is soiemnly
pfedge to the payment IN coin. or its equIva-
lent, OF all obligations OF the Unit d States
and OF all interest bearing Obligations 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 than gold and silver; but none
OF the interes,-bearing obligations not already
due shall be redeemed or paid tor before ma
a. I'D
States notes shall be convertible into coin at
the option of the holder. 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 al par IN coin; and the
United States also solemnly pledge It's faith TO
MAKE provision, at the earliest practicable
PERIOD tor the redemption of United States
notes IN coin.
This act still remains as continuing
pledge of the faith OF the United States to
make provision at the earliest practicable
moment Tor the redemption of the United
States notes Ill coin.
declaration contained in the act Of June
20, 1864 created an obligation that the total
amount OF United States notes Issued, or to
be issued, should never exceed StG0, coo 900
The amount in actual circulation was actually
reduced TO 1856, coo Goo at which point Con
gress passed the act of Feb 4 1868 Sis
pending the further reduction of the cur.
rency. The S44,00U, 900 have even been re-
garden reserve. TO be used only in case of
an emergency, such as has occurred on seve-
raj occasions and must occur when from any
cause the revenues suddenly fall below the
expenditures, and such reserve is necessary
because the fractional currency, amount
ing to $50, O00,00e, is redeemable IN
legal tenders on call. 1t may be id that
such return OF fractional currency for re-
demptIon is improbable: but let steps be
taken Tor return 10 specie basis aud il
VIII be found that silver will take the place
OF fractional currency as rapidly as it can be
supplied. When the premium on gold reach
es sufficiently lew point, with the amount
or United States notes 10 be issued Derma
nently |ltllu proper limits, and the Tr asury
so strengthened as to be able to redeem
them IL coin on demand, it vi / be then safe
TO lnauguTate system OF free banking, with
such provisions as to make compulsory the
redemption of the circulating notes OF banks
10 coin or Unitei States notes, themselves re-
deema BILE and made equivalent to coin. As a
measure preparatory to free banking or for
placing the government 10 position to re-
deem Its obligations In coin at the earliest
II actcable moment, the revenues of the
country should be increased so as to pay the
current expenses, provide for the
SINKING fund required by law, and
also surplus TO be retained in
hetreasury IN gold | am net a believer In
any artificial method of making paper money
equal to coin when coin Is not owned or held
ready to redeem the promises to pav, for
paper money is nothing more than promises
to pay, aud Is valuable exactly in proportion
TO the amount of coin that 1t can be converted
INTO. While coin Is not used as circulating
medium or the currency of the country is
not convertible into it at par, il becomes an
article OF commerce much az any other
product. The surplus will seek a foreign
market, as we'll as any other surDluS The