Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-04-23
President Grant Returns the Cur
reney Bill to the Senate
Witheut Approval.
His Reasons for q Veto that is
UnqnestiOnably In the Inter
est OF the East.
A Very Poor and Unsatisfactory
DOcument-Bad IOgIc-The
Party, Not the People.

/ WASHINGTON, April 22.-The Presi-
dents message
vEToING THE CURRENCY BILL.
To the Senate OF the United States:
Herewith return senate bill No. 617,
entitled "An act 10 fix the amount of
! United States notes and circulation Of
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 q measure
| which has received the sanction Of 3
majority of the Legislators chosen by the
people to make lsws for their guidance,
and have studiously sought TO find suf-
fcient arguments to justify such assent,
| but unsuccessfully. Practically 1t Is
| question whether the measure under dis
cussion would give an additional dollar
| to the
IRREDEEMABLE PAPER CURRENCY
Of the country or not, and whether by
requiring three-fourths Of the reserve to
be retained by banks. and prohibiting
interest to be received on the balance,
1t might not prove contract, but the
fact cannot be concealed that theoreti-
cally the bill increases paper circulation
I one hundred millions Of dollars, less only
the amount Of reserve restrained from
circulation by the provisions Of the
second section. The measure has been
supported on the theory that it would
give increased circulation, and it is a
fair inference, therefore, that il in prac-
tice the measure should fail to create the
| abundance Of circulation expected of 1t,
the friends OF the measure, particularly
those out Of congress, would clamOr for
such
INFLATIoN
rs would give the expected relief. The
theory, in my belief, is departure from
the true principles Of finance, national
interest, national obligations to credit
oTs, 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
Inauguration of congress. In the annual
message to congress in December, 1869,
the following passage appears:
Among the evils growing out of the re-
beliion, and not yet referred 70, is that OF an
irredeemable currency. 1t Is an evil which, 1
hope. viii receive your most earnest attention.
1t Is duty, and one Of the highest duties of
the government, 10 secure 70 the citizen a me-
dium Of exchange of fixed. unvarying value.
This implies a return to a specie basis, and no
substitute for IL can be devised. II shauld be
commenced now and reached at the earliest
practicable moment consistent with fair re-
gard 10 the interest Of the debtor class. I'm
not De desirable. It would compel the debtor
class 10 pay beyond their contracts the prem
iun on gold at the purchases, and would
bring bankruptcy to thousands. Fluctua-
tons, however, in the paper value OF the
measure Of ali values, gold, Is detrimental to
the interest OF trade Il makes the man OF
business an involuntary gambler, for in all
sales where future payments 70 be made both
parties spec llate as to what viii b. TIE value
If fsfar rNafr nd aafa farasF
earnestly recommend to you, then, such
legislation as viii insure a gradual return TO
specie payment, and put an Immediate stop to
fluctuations In the value Of currency.
still adhere to the views then ex-
pressed. As early as December 4, 1859,
the house Of representatives passed a
resolution by q vote Of l44 yeas to
nays, concurring in the views of the
secretary OF the treasury in relation to
the necessity Of q
CONTRACTION OF THE CURRENCY,
with view te as early resumption of
specie payments as the business interests
Of the country viii permit, and pledg-
ing cooperative action to this end as
speedily as possible. The first act
passed by the forty-first congress on the
eighteenth day of March, 1869, was as
follows: Gan act to strengthen the
public credit OF the United States. Be
It enacted, ETC., That II order to remove
any doubt as to the purpose Of the gov
eminent to discharge its obligations to
public creditors and to settle conflicting
questions and interpretations Of the law
by virtue 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
Of its equivalent of all the obligations |
of the United States and Of all the in !
terest-bearing obligations except In cases |
where the law authorizing the issue OF !
any such obligations has expressly pro- |
vided that the same may be paid in law |
ful money or in other currency than |
gold and silver, out none Of said interest |
bearing obligations not already due shall |
be redeemed OF paid before maturity un- |
less at such times as 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 |
q lower rate Of interest than those 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 practicable period, for the |
redemption Of United States notes in |
coin. This act still remains as a con-
tinulng pledge of
THE FAITH OF THE UNITED STATES
to make provision, at the earliest prac-
ticable moment, for the redemption of |
United Stares notes in coin. "a de- |
elaration contained in the act of June |
20, 1884, created an obligation that the |
total amount Of United States issued, or |
to be issued, should never exceed
FoUR HUNDRED MILLION DOLLARS.
The amount in actual circulation was |
actually reduced to three hundred and |
fifty-six million dollars, at which point |
congress passed the act Of February 4, |
1858, suspending the further reduction |
of the currency. The forty-four mill /
lions have ever been regarded as q re-
serve, to be used only in case Of an /
emergency, such as has occurred on sew
eral occasions, and must occur, when,
from any csluse, the revenue suddenly /
falls below expenditures, and such re-
serve is necessary, because the fractional
amounting to fifty million dollars, Is re-
deemable in leHal-tender notes, on call.
It NAV be said that such a return of
fractional currency, for redemption, is
impossible; bat let steps be taken for
return to q specie basis, and it will be
found that silver win take the place Of
fractional currency as rapidly as it can
be supplied. When the premium on gold
reaches 8 sufficiently low point with
the amount of United States notes, to be
issued permanently within proper linn
its, and the treasury so strengthened as
to be able to redeem them in coin on de-
uaand, it will be then safe to inaugu-
rate system of
FREE BANKING,
with such provisions rs to make COM
pulsory redemption Of notes of banks
in coin or United States notes, them
selves redeeLaable and made equivalent
to coin, as measure preparatory to free
banking, or for placing the government
in q condition to redeem its notes in 4
coin at the earliest practicable moment. |
The revenues of the country should be |
increased SO as to pay the current ex-
penses, provide for the sinking fund re- |!
duired by law, and also surplus to be |
retained in the treasury in gold. 1 am !
not q 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 pay. Paper
rnoney IL nothing more than promises
ts pay, ard 10 vRluasls szaetly In pEoa