The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1874-04-30
rae PRESIDENT VEfOEs THE SENATE
CURRENCY BILL.
The following is the Presidents We
70 f,7aeeara.

=.
The following is the Presidents We
, to message:
To the Senate Of the United States:
Herewith I return Senate bill No.
617, entitled "An act TO fix the amount
, of United States notes and the circu-
, IatiOn OF national banks, and for 9th
! er purposes" without my approval
In doing so, I must express my regret
At lot being able to give my assent to
measure which has received the
sanction OF a majority of the legisla-
tors chosen by the people to make
laws for their guidance, and I have
) studiously sought to find sufficient ar
guments to justify such assent, but
! uDsuccessfully.
Practically, il is a question whether
the measure under discussion would
give an additional dollar to the ire
deemable paper currency of the eoun-
try CT not, and whether, by requiring
three-fourths of the reserves to be re-
tanned by the banks, and prohibiting
the interest to be received on the bal
ance, If might not prove q contraction;
but the fact cannot be concealed that
theoretically the bill increases the pa
per circulation one hundred million OF
dollars, less only the amount of re.
serves restrained from circulation by
the provisions of the second section.
The measure has been supported on the
theory that it would give increased
circulation. It Is a fair inference,
therefore, that if in practice the meas
ure 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 depar-
ture from the true principles of f.
nance, national interest, national OBJ
4 legations to creditors, congressional
promises, party pledges on the part of
both political parties, and Of the per-
sOnRl views and promises made by
me in every annual message sent to
Congress, and in each inaugural adj
dress. In my annual message to Con-
gress in December, 1859, the following
passage appears:
"Among the evils growing out Of
the rebellion and not yet referred to,
Is that Of an irredeemable currency.
It is an evil which hope will receive
your most earnest attention. 1t is q
duty, and one of the highest duties, of
the government to secure the citizen
q medium of exchange of unvarying
value. This implies return to aspe-
Gle basis, and no substitute for 1t can
be devised. 1t should be commenced
now, and reached at the earliest prac-
ticable moment consistent with fair
regard to the interest Of the debtor
class. Immediate resumption, IL prac-
i ticable, 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. Fluctuations, however,
in the paper value of the measure of
all values of gold is detrimental to the
interest of trade. 1t makes the man
of business an involuntary gambler,
for in all sales where future payment
is to be made both parties speculate as
to what will be the value of the cur
rency to be paid and received. 1 ear
nestly recommend to you, then. such
legislation as will insure a gradual re-
turn to specie payments, and put an
i'm mediate stop to fluctuations in the
value of currency"
1 still adhere to the views then ex-
pressed.
AS early as December 4th, 1865, the
House OF Representatives passed a
resolution, by vote of IA yeas to 6
nays, coneurring in the views of the
Secretary of the Treasury in relation
to the necessity Of q contraction of
the currency, with a view to as early
a resumption of specie payments as
the business interests of the country
will permit, and pledging eo-opera-
tive action to this end as speedily as
possible.
The first act passed by the XLIst
Congress, on the 18th day of March,
1869, was as follows:
AN ACT
To IStrenqthen the P.lJlic Credit of the
United States.
Be it enacted, DC, That In order to
remove any doubt as to the purpose OF
the government to discharge all its
obligations to the public creditors, and
to settle conflicting questions and in
terpretations 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 pay
ment in coin or its equivalent OF all
the obligations of the United States,
| and OF all the interest-bearing obliga.
tions, except in cases where the law,
authorizing the issue of any such OBJ
legations, has expressly provided that
the same may be paid in lawful mon
ey or in other currency than gold and
silver; but none Of the said interest
bearing obligations not already due
shall be redeemed or paid before ma
| turity, unless at such times as the
| United States notes shall be converti-
BILE into coin, at the option OF the
holder, or unless at such time bonds
of the United States bearing lower
rate of interest than bonds redeemed
can be sold at pal in coin; and the
United StatesialsO solemnly pledges its
faith to make provision, aE the earli-
est practicable period, for the redemp-
ton of United States notes in coin.
This act still remains as a cOntlnu-
ing pledge Of the faith of the United
States to make provision, at the ear
Iiest practicable moment for the re-
demption of the United States notes
in coin.
A declaration contained in the act
of June 20, 1854, 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 re-
duced to three hundred and fifty-six
millions of dollars, at which point
Congress passed the act of February
f. 1868 suspending the futher reduction
of the currency. The forty-four mil
lions have ever been regarded as
reserve, to be used only in the case OF
an emergency, such as has occurred
on several occasions, and must occur
when from any cause revenues sud-
denly fall below expenditures, and
such q reserve is necessary because !
the fractional currency amounting to
fifty millions is redeemable on call. |
1t may be said that such q return of
fractional currency for redemption !
is impossible but let steps be taken |
for a return to q specie basis, and it |
will be found that silver will take the |
place of fractional currency IS rapid |
ly as it can be supplied.
When the premium on gold reaches
sufficiently low point with the
amount of United States notes to be |
issued permanently within proper |
limits and the Treasury so strength
ened as to be able to redeem them in |
coin on demand, it will then be safe to
inaugurate q system of free banking
with such provisions as to make com.
pulsory redemption of the circulating
notes of banks in coin or United
States notes themielves redeemable,
aud made equivalent to coin as a
measure preDaratOrV to free banking,
or for placing the government in a
condition to redeem its notes in coin
at the earliest practicable moment. |
The revenues of the country should |
be increased so as to pay the current
expenses, provide for the sinking lund
required by law, and also surplus to
be retained in the Treasury in gold. |
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, for paper money is nothing more
than promises to pay, and is valuable |