Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1881-03-10
HAYES LAST ACT.
He VetOes the Funding Bill.

WASHINGTON, March 3.-Following is
the message of the President ~etoing the
Funding BILL
To the House of Representatives:
Having considered the bill entitled
"An act to facilitate the refundidg of
the National debt" am constrained to
return it to the House of Representa-.
tives, in which it originated, with the
following statement of my objections to
its passage: The imperative necessity
for prompt action and the pressure of
public duties in this closing week of my
term of office, compels me to refrain
from any attempt to make full and sat
isfactory presentation of the objections
to the bill. The importance of the pas
sage at the present session of Congress of
a suitable measure for refunding the Ma
tional debt which is about to mature is
generally recognized. 1t has been urged
upon the attention of Congress by the
Secretary of the Treasury, and in my last
annual message. If SUCCESSFULLY accom-
plished it will secure a large decrease in
the annual interest payment of the Ma
tion, and
| EARNESTLY RECOMMEND
if the bill before ne shall fail, that an
other measure for this purpose be adopted
before the present Congress adjourns
While in my opinion it would be wise to
authorize the Secretary of the Treasury
in his discretion to offer to the public
bonds bearing 312 per cent interest, in
aid of refunding, l should not deem it
my duty to interpose my constitutional
objection to the passage of the present
bill if it did not contain in it's fifth sec
ton provisions which, in my Judgment,
seriously impair its value, and tend to
the destruction of
THE PRESENT NATIONAL BANKING sYs.
of the country. This system has now
been in operation almost 20 years. No
safer nor more beneficial banking system
was ever established. It's advantages as
a business are free to all who have the
necessary capital. 1t furnishes currency
to the public which for convenience and
security of the bill-holder has probably
never been equalled by that of any other
banking system. Its notes are secured by
deposit with the government ofinterest
bearing bonds of the United States.
The section of the bill before me which
relates to the National banking, and to
which
OBJECTION is MADE,
is not an essential part of a refunding
measure. 1t is as follows:
Sectioh :. From and after July [, 1881 =,
the three per cent. bonds, authorized by
| the first section of the act, shall be the
only bonds receivable as security for ma
tional bank circulation, or as security for
the safe keeping and prompt payment of
public money deposited with such banks:
but when any such bonds deposited for
the purposes aforesaid, shall be designat,
ed for purchase or redemption by the
Secretary of the Treasury, the banking
association depositing the same, shall
have the right to substitute other issues
of the bonds of the United States in lieu
thereof, provided that no bond upon
which interest has ceased shall be ac-
cepted or continued on deposit as securi-
ty for circulation or safe keeping of pub
lie money, and in case bondsso deposited
shall not be withdrawn, as provided by
law, within 30 days after interest has
ceased thereon, the Banking association
depositing the same, shall be subject to
liabilities and proceedings on the part of
the Comptroller, provided for in section
5.234 revised statutes of the United
States; and provided further that section
Of the act of June 20, 1874, entitled
IAN act fixing the amount of United
States notes." providing for redistribu-
tion of National bank currency, and for