The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-04-23
BY TELEGRAPH.
THE INITIATION BILL.
PRESIDENT GRANT,s :vEFe.
lie Fnvors II sound Currency.

message to the Senate of the United
States:
Herewith return to the senate, bill No.
G17, entitled an act to fix the amount OF
the United States notes and the circulation
of national banks and for other purposes
without my approval.
In doing so | must express my regret at
at not being able to give my assent To the
measure, which has received the sanction
of majority of the legislators chosen by
the people to make laws for their guidance
and / have studiously sought to
find sufficient arguments to Justify
such assent, but unsuccessfully. Pracl-
cally, it is a question whether the measure
under discussion would have given an adj
ditional dollar to the irredcemable paper
currency of the country, or not, whether
by requiring three-fourths of the reserves
to be retained by the banks, and prohibit
ing interest to be received on the balance,
it might not prove contraction. But
the fact cannot be concealed that praC-
tically the bill increases the paper circu-
lation 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 supported on the
theory that it would give increased circula-
ton. 1t is circumference therefore that if
in practice the measure should fail to create
the abundance of circulation expected of il
by 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 II de-
parturc from the true principles of finance,
national interest national Obligation to
creditors, congressional promises, party
pledges, on the part of both the political
parties and of personal views aud promises
made by me in every annual message sent
to Congress and in each inaugural address.
In my annual message to congress in De-
cember, 1869, the following passage ap-
pears: among the evils growing out of
the rebellion and not yet referred to Is that
of an irredecmable currency, Ii is an evil
which | hope will receive your most ear
nest attention. 1t is duty and one of the
highest duties of the government 20 secure
to its citizens medium of exchange of
fixed unvarying value. This implies re-
turn to specie basis, and no substitute lorit
can be devised 1t should be commenced
now and reached at the earliest practical
Bile moment, consistent with a fair
regard to the interest Of the debtor class
Immediate resumption if practicable,
would not be desirable, it would compel
the debtor class TO pay beyond their con-
tracts a premium on gold mt the date of
their purchase and would bring bank
ruptcy and ruin to thousands. Fluctuat-
ions however, in the paper value is the
measure of all values, gold is detrimental
to the interest of trade, it makes the man
of business nm 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 currency to he paid
and received | earnestly recommend to
you then such legislation as will ensure
gradual return to specie payments and put
an immediate stop to fluctuations in the
value of currency"
still adhere to the views then expressed
AS early as December 4, 1865, the House
of Representatives passed a resolution by u
vote Of IA yeas to 6 nays, concurring in
IN via,vc of tho eocrotarv Of tho tr.,e,r,-
in relation to the necessity of the contrac-
ton of the currency with a view to rs early
resumption of specie payments as the bust
ness interest of the country will permit and
pledging cooperative action to this end as
speedily as possible. The first act passed
the Forty-first Congress on the 18Th day of
March, 1866. was as follows
''An act to strengthen the public credit
of the United States BE it enacted, etc.,
That in order to remove any doubt as to
the purpose of the government to discharge
all its obligations to public creditors, and to
settle conflicting questions and interpreta-
tations of law by virtue of which such OBJ
legations have been contracted, 1t is hereby
provided and declared that the faith of the
United States is solemnly pledged to the pay
mcnt in coin or its equivalent of all obliga-
tions of the United States and of all interest
bearing the obligations, except in cases
where the law authorizing the issue of any
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 obligation not
already due shall be redeemed or paid be-
fore maturity, unless at such times as
United States notes shall he convertible
into coin Mt the option of the holder, or
unless at the time bonds of the United
States. bearing lower rate of interest
than bonds to be redeemed, can be sold Mt
par in coin, and the United States also
solemnly pledge TO make provision at the
earliest practicable period for the rcdemp-
ton of United States notes in coin. This
act still remain as continuing pledge OF
faith of the United States to make provis
ion at the earliest practicable moment OF
the redemption Of the United States note:
in coin. The declaration contained in the
act of June Goth, 1864, created an obliga
ton that the total amount of United States
notes issued or to be issued should never eX
coed four hundred million dollars, The
amount in actual circulation wa
actually reduced to three hundred and fifty
six million at which point Congress
passed the act of February 4,h, 1868, sus
pending further reduction of currency
Forty-four millions have been regarded az
a reserve to be used only in case of I'm en-
Urgency such as has occurred on seyera
occasions, and must occur when from an,
cause revenues suddenly fall below cXpen
dltures, and such reserve is necessary be
cause the fractional currency amounting L