Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-03-04
VETOED.
THAT IS WHAT IS WRONG WITH THE
MUCH TAlKe00F
Funding Bill-Hayes' Parting Salute in
Favor Of the National Banks Fare
we'll Cabinet Conjec.ures-Resig-
nation Of Secretary
Sherman.
APP0RTl0NMeNT BILL PASSES THE
HOUSE..
HAYES FAREWELL FOLLY.


Poor Ending OF President i Term.
WASHINGTON, March 3.-The follow
ing is the message OF the President veto.
ing the funding bill:
To The HOu@ Of Representatives.
Having considered the bill entitled
"An act to facilitate the reiunding OF the
National debt" am constrained to re-
turn it to the House OF Representatives
in which it originated. with the follow.
ing statement of my objections TO its
passage: The imperative necessity for
prompt action and the pressure OF pub
lie duties in this the closing week OF my
term OF office, compel me To refrain from
any attempt to make iull and satisfac.
tory presentation Of my objections
to the bill. The Importance OF the
passage at the present session OF
Congress of suitable measure for
the refunding OF the National debt
which is about TO mature, is generally
recognized 1t has been urged upon the
attention OF Congress bv the Secretary of
the Treasury and in my last annual mes
sage. II successfully accomplished it
will secure large decrease in the an
nual interest payment ot the nation,
and earnestly recommend, il the bill
before mel shall wait.that another meas
ure for this purpose be adopted before
the present Congress adJOurns.
While in my opinion II would be wise
to authorize tae Secretary OF the Treas
ury, in his discretion, to offer 10 the
public bonds bearing 3! per cent. inter.
est, III aid OF reiundipg, ! should
not deem it my duty to
interposc my Constitutional OBJ
lection to the passage OF the present
bill, il it didn't contain in its iiIth see.
ton provisions which, in my Judgment,
seriously impair its value and tend to
the destruction ot the present National
bank system Of the country. This sys-
TEN has now been in operation almost
twenty years. No safer nor more bene-
fetal banking system was ever estab-
lished. It's advantages as business are
free To- all who have necessary capital.
1t furnishes currency To the public
which, for convenience and security OF
the .biIl-holdcr, has probably never
been cqaled by any other banking sys'
TEN. Its notes are secured by deposit with
the government interest bearing bonds.
The section of the bill before me which
relates TO national banking system,
and 10 which objection is made, ls not
an essential part ola reiunding measure.
Ii is as follows
Section ). From and after the first
day OF July, lSSl, the three per cent
bonds authorized by the first section OF
this act, shall he only the bonds receivable
as security for the national bank CirCu.
lation, or as security for the sale keep
ing and prompt payment Of the public
money deposited with such banks,
but when any such bonds depos.
itel for the purposes Aforesaid, shall
he designated for purchase or redemp.
ton by the Secretary OF the Treasury,
the banking association deposltlng the
same shall have the right 10 substitute
other issues of bonds of the United
States in lieu thereof, provided no bond
upon which interest has ceased shall be
accepted or continued on deposit a. n
security for circulation or for the safe
keeping of the public money; and in
case the bonds so deposited shall not bc
withdrawn as provided it will within 80
davs after the interest has ceased there
on; the banking association depOsitinl
the same shall be subject Ia the lIablll.
ties, and the proceeding on the part OF
the Controller provided Tor IN Section
525l Of the Revised Statutes oi the
United States; and provided further,
that Section OF the Act of June 20,
1874, entitled "An act fixing the amount
Of United States notes providing
for re.distributing the National
bank currency and for the other Pnr.
poses. be and the same Is hereby re-
pcalrd, and sections jlJ9 and IlGO Oi
the Revised Statutes and the same are
herebyrc enacted under this section. It's
obvious no additional ba1 ks will here.
after he organized except possibly IN a
few cities or localities where the prevail
in rates Oi interest IN ordinary business
are extremely low. No new banks can
be organized and no increase OF caPltal
of existing banks can be obtained ex.
crpt 10y the purchase and deposit oi ) per
cont. bonds. NOVther bOndsO!thc | nIted
States can be used for the purchase
Of the one thousand millions oi other
bonds recently issued by the United
states and bearing higher rate OF IN.
terest than three per cent, and there
fore better security for bIlhOli"rs
cannot after the LIST Of July next be re-
ceived as security for bank circulation.
This il a radical change in the banking
law. Ii takes from the banks the right
they have heretofore had under the law
10 purchase and deposit, a. security for
their circulation, any Of the bonds ~
sned bv the United States, and deprIvcs
the biliholder OF the best security which
the banks are able TO give, by requiring
them 10 deposit the bonds having the
least value OF any bonds issued by the
government. The average rate Oi taxation
of the capital employed IN banking is
more than double the rate Of taxation
upon the capital employed IN other le-
Ultimate business Under these circuln-
stances, 10 amend the banking Law 50 as
10 ,irprIye the banks Of the advantage
of securing their rates by the most vs!u'
able bonds issued by the government,
will. il is believed, in a large part ni the
country. De practical prohibition of or
ganizing new banks. and prevent the
existing banks from enlsrsing their cap
i,ai. The national banking system, II
continued a, all, will be monopoly IN
the hands of those already engagri IN u,
who may purchase government
bOnds bearing more iA'0ra'
ble rate OF interest than three
per cent. bonds prior 10 next July, 10
! prevent the organization OF banks a5d
10 put in jeopardy the whole system 10y
taking from il that feature Hhich make
il. "a il now is, a banking system free
mon the same terms. 70 oil who wish
10 engage in it. Even the existing bank
will be in danger Of being driven from
business by the additional disadvsnta
pss 10 which they will he subjected by
This bill. In short, | cannot but regard
the fifth section OF tEe bill a. a step IN
the direction OF the destruction oi th'
National banking system OF our coun
try. After long period business has jos
lust entered upon a caree OF funexample,
prosperity. lhe Withdrawal OF the cur
rency from circulation by the Nationa
banks, and the enforced winding up Q
the banks in consequence would ineyl