The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-03-09
GENERAL TELEGRAMS.
THE VETO.
President Hayes Message vetoIng the
Funding Bill.

President Hayes Message vetoIng the
Funding Bill.
WASHINGTON. March 3.-The following is the
message OF the President vetoing the funding
To the House of Representatives
Having considered the bill entitled can act 10
facilitate the refundihg of the National debt" [
am strained to return it to the House of Repre-
| lowing statement of my objections to its passage:
Inc 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 satisfactory presen-
tation OF the objections to the bill. The import
anee OF me passage at the present session of Con
gress OF a suitable manner for refunding the ma
uonal debt, which is about to measure il gener-
ally recognized. II hes been urged upon the at
tenton OF Congress by the Secretary Of the Treas
ury and in my last annual message. If success
fuly accomplished, IL will secure a large decrease
IN the annual interest payment OF the National
DEBT, and earnestly recommend thot If the bill
before me shall fail that another measure for the
purpose he adopted before the present Congress
adJouIns While. in my opinion, it would be
In his discretion. To offer to the public bonds
bearing ~ per cent. interest in aid OF refunding
| should not deem il my duty 10 interpose my
OF the present bill if it did not contain.
Ill iS NTH section, provisions which, in
my judgment seriously impair its value. and
tend to the destruction of the present National
Banking system of the country This system has
now been in operation almost twenty years No
safer nor more beneficial banking system was
ever established. Its advantages as a business
are free TO all who have the necessary capital.
III furnishes currency 70 the public which for
convenience and security OF the bill holder has
never been equaled by that of any other banking
system. Its notes are secured by a deposit with
the Government OF interest bearing bonds OF the
nited states The section of the bill before me-
winch relates TO the National Banking system.
and TO which objection is made, j. not essential
part OF the relundmg measure. Under this sec
ton il is evident that no additional banks will
hereafter be organized, except possibly in a few
cities or localities where the prevailing of in
terest in ordinary business are extremely low.
No new banks can be organized, no increase of
the capital of existing banks can be obtained eX-
cept by the purchase and deposit OF : per
cent. bonds. No other bonds of the United States
can be used Tor the purpose. The one thousand
millions of other bonds recently issued 10y the
nited States and bearing a higher rate Of inter
est than per cent, and, therefore, better security
for the billholder can not after the first of July
next be received "a security for bank circulation.
This Is a radical change in the banking law. Il
takes from the banks the right they have hereto
fore had under the law To purchase and deposit
security Tor their circulation any OF the bonds
issued by the United states, and depriyes the bill
holders OF the best security which the banks are
able to give. requiring them to deposit bonds
having the least value of any bonds iS,ued 10y
the Government. The average rate OF
more than double the rate of taxation
upon the capital employed IN other legitimate
business. Under these circumstances to amend
the banking law 50 as Ia deprive the banks of the
advantage of securing their notes 10y the most
valuable bonds issued by the Government will
il Is believed. in large part of the country be a
practical prohibition OF organizing new banks.
and prevent existing banks from enia rglng their
capital. The National Banking system If CON
tinued at all, will be monopoly in the hands of
those who are already engaged III II. who may
purchase Government bonds bearing more ia
vOrable rate of interest than , per cent. bonds
prior 10 next July. To prevent further organ
lzation of banks is To put in jeopardy the whole
system by taking from IL that feature that makes
as IL now Is, a banking system free. upon the same
terms. to all who wish 10 engage in il. Even ex-
listing banks will be in danger OF being driven
from business by the additional disadvantages To
which they Will be subjected by this bill. In
short can not but regard the fifth section OF the
bill a. step in the direction of the destruction
OF the National Banking system Of our country.
After long period business has Just entered
upon career of uneXampled prosperity. The
withdrawal OF currency from circulation by the
National Banks. and the enforced winding up of
banks in consequence, would inevitably bring
serious embarraSsments and disaster 10 the bust
ness of the country. Banks of issue are essential
instruments OF modern commerce. If the present
efficient and admirable system of banking is
broken down, it VIII inevitably be followed by
recurrence 10 other and inferior methods OF
banking. Any measure looking 10 such result
will De disturbing element in our financial sys-
TEN. IL VIII destroy confidence and surely check
1.-The growing prosperity of the country. Believing
that the measure fer refundng the National debt
i not necessarily connected with the National
banking law, and that ans refunding act will de-
feat its own object ii IL imperiled the National
Banking system, or seriously impaired its useful
ness; and convinced that Section OF the bill
before me would, If ii should become Il law, work
great harm. herewith return the bill TO the
House Oi Representatives for the further con-
sideration which is provided for in the COnsttu-
ton. RUTHERFORD Il. HAYES
Executive Mansion, March 5. ISL.