Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1874-04-24
TNELATION VETOED.
President Grants Message.
sorrND FINANCIAL VIEWS.
A "Hard-Money" President.

the President s message vetOinS ihc "o""t'
imitation bill
To the Senate of the United States Herein
return the Senate bill number 6l7 entitled
an act to fix the amount Of United States
notes and the circulation Of national banks,
and for other purposes, without my ap-
prevail. In doing so, must express my
regret at not being able to give my assent
to a measure which has received the sane
ton of the majority Of the legislators
chosen by the people - make laws for
their guidance, and | have stu1iOusly
sought to find sufficient arguments to JUS
tify such assent, but unsuccesslully.
THE QUESTION STATED.
Practically it is question whether the
measure under discussion would give an adj
ditional dollar to the irredeemable paper OF
the country or not, and whether by requlr-
ing three fourths of the reserves to be re-
tanned BY the banks and prohibiting interest
to be received on balances, it might not
prove contraction. But the fact cannot
not be concealed that theoretically
the bill increases the paper err
culation one hundred millions of dollars.
less only the amount Of reserves restrained
from circulation by the provisions OF the
second section. The measure has been sup
ported on the theory that it would give IN
creased circulation. 1t is fair inference
therefore, that practicable should the meas
ure fail to create the. abundance OF eircu-
lation expected OF it, the friends oil the
measure, particularly those ont ofCongres-.
would elamor for such imitation q would
give the expected relief. The theory. in my
belief, is q
DEPARTURE FROM TIE TRUE PRINCIPLES OF
FINANCE,
national interest, national obligations 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. 1863, the following passages
appear: Among the evils growing out Of
the rebellion and not yet legislated upon,
is that Of an irredeemable currency. Ii Is
an evil which hope will receive your most
earnest attention. 1t IS a duty and one Of
the
HIGHEST DUTIES OF THE GOVERNMENT
to secure to the citizens medium Of ex-
change of fixed, unwavering value. This
implies return to a specie basis, AMI 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 resump-
ton, if practicable. would not be
desirable 1t 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.
Flucruation in the paper value Of the meas
ure of all values, gold, is detrimental TO the
interest of trade 1t makes the man Of
business an involuntary gambler, for in al
] sales where future payment i to be made
both parties speculate as to what viii
will be the value Of the currency
to be paid and received. earnestly
recommend TO you, then, such legislatio n
as will insure q gradual return to specie
payments, and put an immediate stop TO the
fluctuations in the value of the currency.
still adhere to the views then expressed.
As early as December i.h, ls65, the
House of Representatives, asseda resolution
by vote of IA yeas to 6 nays, e0ncurring
in the views Of the secretary Of the treasury
| in relation to the
NECESSITY OF TIE CONTRACT
CURRENCY,
with the view to as early resumption Of
specie payments as the business interests Of
the country will permit and pledging co.
operative action to this end a. speedily a
possible.
The first act passed by the Forty-first Con
gress, on the 18th day of March, 1853, was
as follows An act to strengthen the public
credit of the United States BE it enacted,
etc; that it order to remove any doubt a.
to the purpose of the government to dis
charge all its obligations to the public ere
ditors, and to settle conflicting questions,
and the Interpretation of the law by virtue
of which such obligations have been con-
tracted, it Is hereby provided and declared
that
THE FAITH OF THE UNITED sTATEs Is SoLENNLY
PLEDGED
to the payment in coin or it, equivalent, Of
all obligations of the United States and Of
all interest-bearing obligations except in
cases where the law authorizing the issue
of such obligations is expressly provided
that the same may be paid in lawful money
or in other currency than gold and silver,
but none of said interest-bearing obligations
lot already due shall be redeemed or paid
before maturity unless at such times
as United States notes shall be con-
vertible into coin at the option Of
the holder, or unless at the time
bonds of the United States bearing lower
rate of interest than the bonds to be re-
deemed can be sold at par in coin; the
United States also pledges its faith TO make
provisioc at the earliest practicable period
for the redemption of United States notes
i'll coin.
This act still remains as continuing the
pledge of the faith of the United States to
make provision at the earlics practicable
moment for the redemption Of L ited States
notes in coin.
The declaration contained in the act of
June Goth, 1864, created an obligation that
the total amount of United States notes
issued or to be issued should never exceed
four hundred millions of dollars The
amount in actual circulation was actually
reduced to three hundred and fiity-six
millions of dollars. at which point Congress
passed the act of February Ith, l66S, sus-
pending further redemption of the currency.
THE FORTY FOUR MILLION RESERVE.
Forty-iour millions have since been re-
garded as reserve, to be used only in case
of 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 because the fractional currency
amounting to fifty millions, Is reedemable
in legal tenders ON call. 1t may be said
that such a return of the fractional cur
rency for redemption is impossible, but let
steps be taken for return to specie
basis and it will be found that silver will
take the place of fractional currency as
rapidly as it can be supplied
FREE BANKING.