Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1874-04-30
Presidents Message Vetoing the Cur.
rency Bill.

| TO n1 senate Of Tie United States:
Herewith / return Senate bill No 6l7, ent-
tied "An act to Tx the amount of United
| States notes and the circulation of National
| Banks, and for other purposes" without my
approval. In doing SO must express my re-
| greet at not being able TO give my assent to a
measure which has received the sanction of
a majority of the legislators chosen by the
people TO make laws for their guidance
and | have studiously sought to tud suth-
Gent arguments to justify such assent,
| but unsuccessfuly. Practically it is a
| question whether The measure under discus
| SION would give an additional dollar TO the If
redeemable paper currency of the country or
not, and whether, by requiring threetourlhs
| OF the reserves 10 be retained by the banks
| and prohibiting interest 10 be received on
| the balance, 1t might not prove contrac-
ton. But the fact cannot be concealed
that, theoretically, the bill increases the paper
circulation 500, 900 600, less only the amount
of reserves restrained from circulation by the
| provisions of the second section. The meas-
| ure has been supported on the theory that il
| would give increased circulation. 1t is a 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 Imitation as would
| give the expected relief. The theory, ia my
belief, Is II departure from the true principles
| OF finance, national interest, nat lonal obiya-
tons 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 10 Congress, and in each inaugural ad-
dress.
In my annual message to Congress in De-
cember, 1863, the following passage appears;
Among the evils growing out Of the rebellion
ana no. yet referred to- is thai of an irredeemable
| currency. II is an evil which hope will receive
| your most earnest attention. Ii is a duty and one
OF the highest duties of the Government to secure
| 10 the cllizen medium of exchange OF fixed, un.
| varying value. This implies return TO a specie
OASIS and no substitute for 1t can he devised. Ii
| should be commenced now, and reached at
| the earliest practicable moment consistent
| WIN fair regard 10 the interests Of the
debtor class. Immediate resumption, if prac.
| ucaole, would not be desirable. IL would com
pei the debtor class to pay beyond their contracts
inc premium on gold a tue dale of their purchase,
| ana would bring bankruptcy and rain TO thou
| sands Fluctuations, however, ia the paper value
or the measure of all values, gold, is detrimental
20 the interest Of trade. 1t makes The man of bust
| ness an involuntary gambler, for in all sales
| where future payment Ii to be made, both parties
! speculate as to what will bo the value of the cur
| rercy 10 be paid and received. earnestly recon-
mend To yod, then, such legislation us Will insure
sraaual reluru 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, the House of Repre-
| sentallVes passed II resolution, bya vote of LA
| yeas 10 D nays, concurrlng In the views of
| the Secretary of The Treasury in relation To
! the necessity of contraction of the currency
with view To rs early a resumption of specie
| payments as the business Interests of The
| country VIII permit, and pledging cooperative
| action 10 this end as speedily as possible. The
first act passed by the Forty first Congress,
on the 18th day OF March, 1869, was us fol,
| lows:
Al. Act 10 Strengthen tie Pu6Hc Credu Of the
| United States:
| BE Il enacted, eic., That In order to remove any
| doubt as to the purpose OF the Government TO dis
charge all It's Obligations 10 the public creditors
and TO settle conflicting questions and interpret
| TONS OF the law by virtue of which such obliga.
lions have been contracted, IL Is hereby provided
and declared that the faith OF the United States is
| solemnly pledged to the payment in coin, it's
| equivalent, OF all the Obligations of the United
States, and of all the interest-bearng obliga-
lions, except III cases where the law authorizing
the issue of any such obligations has expressly
provided that the same be paid in law
ful money, or other currency than gold anC silver;
| but none Of said uterest-beAring obliga-
| lions not already due shall be redeemed 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 he redeemed can be sold at
par in COIN and The United States also sole only
pledges It's TAI 10 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 United States to make provisions ut the
earliest practicable moment for the redemp-
| ton of the United States notes in coin. a
declaration contained in the act of June 30,
| 1864, created an obligation that the total
amount of United states notes issued or to be
Issued should never exceed S4U0,0O0 900, The
amount in actual circulation was actually re.
IlIplI IN at hlhi oh ,tptf ,N,,
gress passed the act of Feb 4, 1865 suspend
ing the further reduction Of the currency
The S44 100000 have ever been regarded as
a reserve to be used only in case of an emer-
gency such as has occurred on several occa-
sions, and must occur when, from any cause,
the revenues suddenly fall below the oxpcnd-
| lures, and such reserve Is necessary because
the fractional currency, amouutDgto S50, Co.,
900, is redeemable in legal tenders on call 1t
| may be said that such return OF fractional
| currency for redemption is improbable, but
let steps be taken for a return to "A specie
basis and it Will be found that silver will
take the place of the fractional currency rs
rapidly rs it can be supplied. When the pre-
MUM on gold reaches a sufficiently low
point, with the amount Of United States notes
TO be issued permanently fixed within proper
limits, and the Treasury so strengthened o
be able to redeem them In coin on demand, 1t
will be then safe to inaugurate a system of
free banking, with such provisions as to make
the compulsory redemption of circulating
notes OF banks in coin or United States notes
themselves redeemable ard made equivalent
10 coin. As a measure preparatory 10 free
banking, or for placing the Government in a
position to redeem its notes ia coin at the
earliest practicable moment, the revenues Of
the country should be increased SO a. TO pay
the current expenses, provide for the silk.
ing fund required by law, and also surplus
retained In |
am not believer in any artificial method
of making paper money equal 10 coin, when
coin is not owned or held ready to redeem
the promises TO pay, for paper money