The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-03-04
Veto of the Funding Biii


SONS FOR WITHHOLDING HIS APPROVAL.
WASHINGTON. March 3.-The President
b.>lctuneG the funding bin 10 the House
with his objections to il passage. The f0l'
lowing i, tie iull text II the message;
To the Hoese Of Representatives,
Having considered the bill entitled can
act TO f.c'.tate the rcfuudng Of the
national d.Oi." am constrained 10 return
TO the Hou>eof Representatives. in which
il originated. win The following statement
Of nv objection. to lis passage: The im'
pcratiye necl >..'y for prompt action and the
pressure Of public duties in this the closing
week Of nv term Of office compel me 10 re-
FRAN from any attempt ID make fuli
and satisfactory presentation of obiec-
lions to the h.l. The importance OF the
passage at tie present session Of Congress
OF such measure for the Iefundlng OF The
naiiOaal deb. which il about to mature l.
generally Tec0snized. Ii has been urged
upon the attention Of Congress by the Sec
rftaTv Of The Treasury ana in my last an
nual message. Ii successfully accomplish
e.. il will secure large decrease in the an
nual fnleTes, payment Of the naiiOn, and i
earnestly recommend that ii the bill before
me- should fan that another measure for tins
purpose bee adopted before the present Con-
GEES adjOu:nS. While. in my opinion, II
would b. wise 20 authorize the Secretary OF
the Treasury In hi discretion 10 offer pubic
bonds bearing = per cent. interest IN aid
Of reiundiug. should not deem 1t my duty
to interpO.e my constitutional objection to
the passage of the present bill II 1t did
not contain in il 9th section provisions
which, in NY Judgment, seriously impair
the value and tend Ia the destruction OF the
present misunderstanding system OF the
country. This system has now been IN
operation almost twegty years. No safer
nor more beneficial banking system was
ever established. It's advantages as business
are free To all who have the necessary CAPT.
tai. II furnishes currency 10 the public
which for the convenience and security OF
the bill-hOldcr ha>'uever been Cqualled by
that Of any other banking system. Its notes
are secured by a deposit with the Govern
mCnt Of in'ere>t-bearng bonds OF the
United states. The section OF The bill be-
fore me which relates 10 The natlOnal.bank-
ing system, and 10 which objection is made,
j, hot am essential part OF the rounding
measure. II j., rs follows:
"Scclion >. From and after the 1t day OF
July, 1881. tue per centum bonds aulbOr-
lied by the first section of this act shall be
the only bonds receivable rs security for
nati0nal.bauk circulation, or as security for
The fekeeping and prompt payment OF the
public money deposited with such banks !;
but when any such bonds deposited for the
purpose aforesaid shall be designated for
purchase or redemption by the Secretary OF
The Treasury, the banking associations de-
posting the same shall have the right TO
substitute other issues Of the boUds Of
The United States in lieu thereof !;
provided that no bonds upon which
interest ha, ceased shall be accept.
ed or shall be continued on deposit
a, security FOR circulation, or for the
safe-keeping Of The pubic money, and in
case bonds 20 deposited shall not be with-
drawn, II provided by law, within thirty
DAYS after interest has ceased thereon. the
banking association depOslting the same
shall be >ul ject 10 the liabilitits and pro-
ceedlngs on the pant q The controller pro-
vlded for IN section j23f OF the Revised
statutes Of the United States; and pro-
Nded further that section OF the act OF
June 20. 1874, entitled 'an act fixing the
amount OF United States notes, providing
FOR redistribution Of the national bank
currency, aud Tor other purposes be and
The SAINT is hereby repealed, aud sections
9lJ9 and jiG0 Of the Revised Statutes OF the
United states be and the same are hereby re-
enacted"
Under this section il is obvious that no
additional banks will hereafter be organized
except possibly in few cities or localities
where the prevailing rates Of interest In or
uinary business are extremely low. No new
banks can be organized and no Increase OF
capital OF existing banks can be obtained
except by the purchase and deposit OF per
cent. bonds. No other bonds Of the United
States can be used for the purpose. The
one thousand millions OF other bonds re-
Gently Issued by the United States, and bear
lng higher rate Of interest than per cent,
and therefore better security Tor the bill
holder cannot after the lst OF July next
be received as security for bank circua-
ton. This is a radical change In the
banking law. II takes from banks the
right they heretofore had under the law TO
purchase or deposit as security for their cir
culallon any Of the bonds Issued by the
United States, and depriyes the bill.holders
OF the best security which the banks are
able 10 give by requiring them 10 deposit
bonds having the best value OF any bonds
Issued by the Government. The average OF
taxation Of the capital employed In bank
ing is more than double the rate OF TAXA
ton. and is double that employed in other
iegtimate business. Under these circum.
stances, 10 pass banking law so
as 10 deprive the banks OF the advantage
OF securing their notes by the most val.
liable bonds issued by the Government,
VIII, II Is believed, In 4 large portion OF The
country be practical prohibition Of the or