The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1874-04-28
The Presidents Veto Message.

NatloDai Dauks, ana lOr other purposes,
without my approval In doing so must
express my regret at not being able to
give my assent to measure which has
received the sanction of majority OF the
legislators chosen by the people to make
laws for their guidance, and have studi.
ously sought to 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 irredeemable pa.
per currency of the country or not, and
whether, by requiring three fourths Of the
reserve TO he retained by the banks and
prohibiting interest to be received on the
balance, it might not prove a contraction.
But the fact cannot be concealed that,
theoretically, the bill increases the paper
circulation S100,000,000, less only the
amount Of reserves retained from crcula.
ton by the provisions Of the second sec.
ton The measure has been supported
on the theory that it would give increase
circulation, 1t is fair inference, there
fore, 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 initiation as would give
the expected relief The theory, in my
belief, is a departure from the principles
Of finance, national interest. national ohl-
cations to creditors, Congressional pTomis-
es, party pledges ON the part Of both
political parties, and Of the personal views
and promises made by me,in every annu-
al message sent to Congress. and in each
inaugural address. In my annual message
to Congress, in December, 1869, the fol-
lowing passages appeared
Among the evils growing out Of the
Rebellion and not yet referred to- is that
Of an irrideemabIc currency 1t is an
evil whech | hope will receive your most
earnest attention. 1t is duty and one
of the highest duties of the Government,
to secure to the citizens a medium of ex.
change Of fixed unvarying value This
implies a return to specie basis, and no
substitute for it can be devised. 1t should
be commenced now and reached at the
earliest practicable moment consistent
with fair regard to the interest Of the
debtor class. Immediate resumption, if
practicable, would not be desirable. 1t
would compel the debtor class to pay be.
yond their contracts the premium on gold
at the date Of their purchase and would
bring bankruptcy and ruin TO thousands
Fluctuations, however, in the paper value
of the measures Of all values-god-is
detrimental TO the interest Of trade. 1t
makes the man Of business an involuntary
gambler, for in oil sales where further
payment is to be made both parties spec
uate as to what will be the value Of cur.
rency to be paid and received. earnestly
recommend to you, then, such legislation
as will insure a gradual return TO specie
payments and put an immediate stop to
fluctuations in the value of currency,
still adhere to the views then express.
ed. AS early as Dec. 4, 1865, the House
Of Representatives passed a resolution, by
a vote Of 144 Yeas 10 6 Meas, occurring
in the views Of the Secretary Of the Treas
ury in relation to the necessity Of a con-
traction Of the currency, with a view TO
as carly resumption of specie payments
as the business Of the country will per-
nit, and the pledging cooperative action
to this end as speedily as possible. The
first act passed by the Mist Congress
on the 18th day Of March, 1860, was as
follows:
Az Acr to strengthen the public credit of the IL
nitod states.
b. II maci,d, S., That in order to remove any
doubt rs to the purpose of the Government to dis
charge all its obligations to the public creditors,
and to settle conflicting questions and intcrprota-
tions Of the law by virtue OF which such obi cations
have been contracted. it i hereby provided and
declared that the faith of the nited states is
solcmnly pledged to the payment in coin or it,
equivalent Of all the obligations of the United
States not bearing interest. known o. tniiei
States notes and Of all the ntcrest-bcaring ohli-
cations, except in eases whore the law authorz-
ing the issue Of any such obligation has cXprossl y
provided that the same may be paid in lawful
money or in other currency than gold or silver
but none of said intercst-bearing obligations, not
already due, shall be redeemed or paid before
maturity unless at such times the United tate,
notes shall be convertible into coin at the option
Of the holder, unless at such time bonds Of IT.
United States bearing Il lower rate Of interest
than bonds to be redeemed can be sold at par in
coin. And the United States also solemnly pledg,
its faith to make provisions at the earliest pract
cable period for 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 practica
BILE moment for the redemption of thC
United States notes in coin. A declara
ton contained in the act Of June 90, SCI
created an obligation that the total amount
Of United States notes issued or to be is
sued should never exceed 500, 600 000
The amount in actual circulation wa!
actually reduced to 500 600, 600, a
which point Congress passed the act o
Feb. 1, 1865, suspendiug the further re
duction of the currency. The S4l geo,
/ 600 have ever been regarded as reserve,
to be used only in cases Of an emergency
such as has occurred on several occasions
and must occur when from any caus
revenues suddenly fall below expenditur
es and such reserve is necessary, becaus
the fractional currency, amounting t.
$50 600 600, is redeemable in legal ten
der on call. 1t may De said that such
return Of fractional currency for redemp
ton is impossible but let steps be takcl
for a return TO a specie basis, and it vii
be found that silver will take the pac
of fractional currency as rapidly as it ca
be supplied.
When the premium on gold reaches
sufficiently low point, with the amount q
United States notes to be issued perma
nently within proper limits,and the Trcasu
ry 50 strengthened as to be able to redeer
them in coin on demand, it will then D
safe to inaugurate a system of free bank
ing, with such provisions as to max
compulsory, redemption Of circulatio
notes of banks in coin, or United State
notes themselves, redeemable and mad
equivalent to coin, as measure prepare
tory TO free banking, or Tor placing tn