Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-04-30
THE VETO.
The Full Text of the Presidents
Message. Disappearing
the Currency Bill.

To the Senate Of the United States /:
Herewith | return Senate bill GIT, |
entitled, can act to fix the amount |
of the United States notes and the |
circulation OF the national banks,
and for other purposes" without my
approval.
In doing so | must express my
regret at not being able to give my
assent to a measure which has re-
ceived the sanction of majority OF
the legislators chosen by the people
to make laws for their guidance, and
| have studiously sought to find suffi-
Gent arguments to justify such assent,
but unsnccessfully. Practically, this
question whether the measure under
discussion would give an additional
dollar to the irredeemable paper cur
rency 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 balances it might not
prove q contraction bill. The fact
cannot be concealed that, theOreti-
cally, the bill increases the paper
circulation 500, 600, 900 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 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
Congress, would clamor for such in
haticn as would give the expected
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 Congress, and in each inaugural
| address. In my annual message to
Congress in December, 1869, the
following passages appear:
| Among the evils growing out of the rebel
| lion, and not yet referred 10, is that OF ire
| dee mable currency 1t is an evil which hope
will receive your most earnest attention. 1t 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
imphes a return to a specie basis, and no SUD-
| sttute for it can be devised. 1t should be
commenced now and reached at the earliest
| practicable moment consistent with fair re-
| gard to the interest of the debtor class. I'm
| mediate 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 purchase,
and would bring bankruptcy and ruin 10
/ thousands. Fluctuations, however, IN the
| paper value Of the measure of all values, gold,
| is detrimental to the interest OF trade. 1t
makes the man of business an involuntary
gambler, for in all cases where future pay
| ment is to be made both parties speculate as
| to what will be the value of the currency 70
be paid and received. | earnestly recommend
TO you, then, such legislation as will assure a
gradual return to specie payments, and put an
| Immediate stop to the fluctuations in the value
| of currency.
! still adhere to the views then
expressed AS early as Dec. A, 1865,
X - OF entatives passed
a resolution, by a vote of IA yeas
to 6 nays, concurring in the views of
the Secretary of the Treasury in re-
lation to the necessity of contrac-
ton of the currency with view to
as early a resumption of specie pay
ment as the business interests of the
country will permit, and pledglng CO.
operative action to this end as speed
| lily as 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 it enacted, ETC., That in order to remove
any doubt as to the purpose of the govern
ment to discharge all its obligations to public
creditors and to settle the conflicting questions
| and interpretations of the law of value, 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 It's equivalent, of
all obligations of the United 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
said interest bearing obligations not already
due shall be redeemed or paid before maturi-
ty, unless at such times as the United States
notes shall be convertible into coin at the OPP
ton 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 at par in coin; and the United
States also solemenly pledge its faith to make
;cin of ha aariiocf hfo nario6
for the redemption of United States notes in
coin.
This act still remains as continu-
ing pledge Of the faith of the United
States to make provision at the ear
Hest practicable moment for the re-
demption of the United States notes
in coin.
A declaration contained in the act
of June 20, 1864, created an obliga-
ton that the total amount of United
States notes issued, or to be issued,
should never exceed 100000, 600.
The amount in actual circulation was
actually reduced to 1856, 100000, at
which point Congress passed the act
of Feb. 4, 1858, suspending the fur
Their reduction of the currency. The
s44 600 900 have even been regarded
a reserve, to be used only in case OF
an emergency, such as has occurred
on several occasions and must occur
when from any cause the revenues
suddenly fall below the expenditures.
and such reserve is necessary, be-
cause the fractional currency, amount
ing to s50,O00,000, is redeemable in
legal tenders on call 1t may be said
that such a return of fractional cur
renew for redemption is improbable ;
but let steps be taken for return to
a specie basis, and it will be found |
that silver will take the place of
fractional currency as rapidly as 1t
can be supplied, When the premium
on gold reaches a sufficiently low
point. with the amount of United |
States notes to be issued permantly |