Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1874-04-30
THE VETO.
The Presidents Message vetolng the
Currency Bill.
lle Favors a Spccdy Rcturn to Apcclc
Payments.

Since the passage by Congress of tho bill t.
fix the amount Of tho currency and for free
banking, the people have been pretty evenly
divided i'll opinion as to whether tho President
would sanction the measure. President Grant
has, however, vetoed the bill and the question
Of imitation may be considered settled, a. it il
extremely doubtful il the measure can bo car.
ricd over his veto. The following is the Pres
ident's message to the Senate (wlen the bill
originatcd) vetoing the measure:
To the Senate Of tho United States:
Herewith return Senate bill No. CIT, Oh
titled IAN act to fix tho amount of United
states notes aud circulation of national banks,
and Tor other purposes, without my approval
In dong 30, must express my regret at not
being ablo to give my assent to = measure
which has received the sanction Of majority
laws for their guidance, and have studiously
sought to find sufficient arguments to justify
such assent, but unsuccessfully. Practically.
It is question whether the measure under
discussion would give. IN additional dollar to
the lrredeemable paper currency Of tho coun-
fourths of the revenues to be retained by the
banks and prohibiting interest from being re-
celved on the balance, it might not prove =
contraction But the fact cannot he concealed
that theoretically, the bill increases the paper
circulation one hundred millions Of dollars
less only the amount Of reserves restrained
from circulation by tho provisions Of tho sec-
ond section. The measure has been supported
on the theory that it would give increased cir
culation. 1t il fair inference, therefore, that
It in practice the measure should fail to create
the abundance OF circulation expected of it,
tho friends OF the measure, particularly those
ton ~ would give the expected relief.
The theory, in my belief, is departure from
| the true principles Of finance, the national in
terest, national obligations to creditors, Con-
gressional promises, party pledges ON the part
OF Doth the political parties, and Of tho person
Al views and promises made by me in every
annual message sent to Congress, and in each
managerial address. In my annual message to
Congress in December, 1869, tho following
passages appear:
"Among the evils growing out of the rebel
lion, aud not yet referred to, is that of ire
deemable currency. It il an evil which hope
WI receive your most earnest attention. It is
. duty, and one Of the highest duties Of the
government, to secure to the citizen = medium
OF exchange OF fixed, unvarying value. This
implies = return to specie basis, and no sub
stitute for it can be devised. It should be
commenced now, and reached ct the earliest
to the interest Of the debtor class. Immediate
resumption, if practicable, would not be desir-
able. It would compel the debtor class to pay
beyond their contracts, the premium ON gold at
the date OF their purchase, and would bring
bankruptcy and ruin to thousands. Fluctua-
ure Of all values, gold, is detrimental to tho
interest Of trade It makes tl,e man Of business
IN involuntary gambler, for in al sales where
future payment is to bo made, both parties
speculate a. to what will be the value Of cur
rency to be paid and received. earnestly
nj ~
will insure : gradual return to specie payments,
and put an immediate stop to fluctuations in
value Of currency"
still adhere to the views then expressed.
As early as December 4th 1866, the House of
Representatives passed resolution by vote
Of the secretary Of the treasury in relation to
the necessity Of contraction Of the currency
with viewt o a. early resumption Of specie
payments a. the business interests of the
country will permit, and pledging cooperative
action to this end, 40 speedily as possible. The
the 18th day Of March, 1853, was as follows:
~ An get to strengthen the credit Of the
United States. Be it enacted, &c.,. that in
order to remove any doubt ~ to the purpose
OF government to discharge all its obligations
to public creditors, and to settle conflicting
virtue Of which such obligations have been
contracted, it is hereby provided and declared !
that the faith Of tho United States is solemnlv
pledged to the payment in coin or its euuiva-
lent, Of al obligations Of the United States, |
and OF all interest bearing obligations, except
ID cases . where the law authorizing the issue Of
that the same be paid in lawful money, or 9TH |
or currency in gold and silver. But none of |
said interest bearing obligations, not already |
due, shall be redeemed or paid before maturity. |
unless :t such times e. the United States |
notes shal! be convertible into coin, At the |
option Of the holder, or unless At such times as
bonds of the United States, bearing = lower
rate OF interest than bonds to be redeemed, |
can be sold at par in coin and the United |
States also solemnly pledges its faith to make |
provision, at the earliest practical period, for
the redemption of United States notes in coin." !"
This .ct still remains - continuing pledge /
OF the faith Of the United States, to make |
provision at the earliest practicable moment |
for the redemption Of tho United States notes
in coin. A declaration contained in the act Of |
june 70, 1864, created IN obligation that the
total amount OF United States notes, issued or
to be issued, should never exceed $400 OOO, 600.
The amount in actual circulation was actually
reduced to 1856, ,0O0, 900, At which point Con.
gross passed the act Of February 4, 1858, sus-
pending tho further reduction of currency.
Tho 81, OOO, 900 have ever been regarded as q
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 expendi-
lures, and such . reserve is necessary, because
the fractional currency, amounting to $780,
0oO,OOO is redeemable in legal tenders on cali.
1t may be said that such fetrrn of fractional
currency for redemption is impropable, but let
steps be taken for return to = specie basis.
and it will be found that silver viii take the |
place OF fractional currency a. rapidly as it can
be supplied. When the premium on gold |
reaches . sufhciently low point with the
amount Of United States notes to be issued |
Eraaanrs permanently within proper limits and the
deem them in coin on demand, it will be then |
safe to inaugurate system Of free banking, |
with such provisions as to make compulsory |
redemption Of circulating notes of banks in |
coin or United States notes, themselves re- |
deemable, and made equivalent to coin, ~ |
measure preparatory to free banking, or for |
placing the government in = position to re- |
deem it's notes in coin at the earliest practical
bic moment. The revenues of the country
should bo increased 80 AZ to pay current ex-
pe'ises, provide for the sinking fund required |
by law, and also . surplus to be retained in the
treasury in gold. am not = believer in any
artificial method of making paper money equal |
to coin. When coin is not owned or held ready |
to redeem the promise to pay for paper money
is nothing more than promise to pay, and is
valuable exactly in proportion to the amount
Of coin that it can be converted into. While
coin is not used as = circulating medium or
currency OF the country, il it is not converted
into it at par, it becomes IN article of COM
merce, as much ~ any other product. The
surplus will seek foreign market, as will any
other surplus. The balance of trade has moth
ing to do with the question. The duties on
imports being required in coin creates limit
cd demand for gold, and about enough to sat-
isfy that demand remains in the country. To
increase this supply see no way open hut by
the government boarding, through tho means
above given, and possibly by requiring the
national banks to aid.
1t is claimed by the advocates of the measure
herewith returned, that there is an unequal
distribution Of the banking capital of tho coun-
try was disposed to give great weight to
Election it will be remembered that there still
remains Sal, ,OOO, 600 of authorized bank note
circulation, assigned to states having less than
their quota, not yet taken. In addition to this.
the states having less than their quota of bank
circulation, have tho option of $25, ,OOO, 600
moro, to bo taken from those states having
more than their proportion. When this is ali
taken up, or when specie payments are fully
restored or arc in rapid process of restoration,
it will be time to consider tho question of moro
currency. (SigneD U. s. GRANT.
Executive Mansion, April ~, 1874.
IT is expected that the Queen will
direct q medal shall be struck to COM
memorate the Ashantee war, with one
bar for Amoaful of Coomassie. Only
the troops, marines and sailors engaged
at the front will be entitled to the bar,
but all who took part in the expedition
even those who were kept in reserve,
and did not land, will have a legal
claim to the Ashantee medal.