The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-03-04
VETOED,
~, PRESIDENT RETURNS THERUND'
ISG BILL TO CONGRESS-
,.r,,b,r with Hh Reasons for with
noldlur His Approval OF itS Pro-
yl,IOus-An Exhaustive Re
view oTIhe BILI's Vaults
and AbsurtiIties.

WIsulSdTOS, March Sine lolloWlnk
:. ,bo message Of the President yetoing
the Funding bill'
bAe AOu~ of Representatives.:
Having considered the bill entitled "An
a., n facilitate the refuuding OF the Ma.
tjonal debt" am constrained to return Il
,bs House Of Representatives, in which
u originated, with the following state
,osnt Of my objections to iA passage.
'i,Ss TI imperative necessity for prompt 40
ion and ths pressure oil public duties in
,S,s Ibeclosipg week ot my term OF ot1ce,
oomnsI o,,r ma 10 refrain from any at
tcmp, 10 make q full and satisfactory pre-
sanitation Of the objections TO the Dill
The Importance OF the passage at the pres
srt MI session Of Congress Of q suitable meas
@ u,eior rpInndingthat portion Of the Nation
sIdobt which is about TO ture, 10 generals
10 ,ecovnized. 1t has been urged upon the
a,enliop Of Congress by the Secretary Of
t6s Treasury and In my last annual mes
ave Ma and il successfully accomplished Il
iii % seclre a large decrease In the annual
;,,s,es, payment OF the Nation, and |
earnestly recommend II the other bills be-
loe YOU shall wait that another measure
far this purpose be adopted before the
nreSept Congress adjourns.
While In my opinion 1t would be wise
,o authorize the Secretary OF the Treasury
II hiA discretion 10 offer to the public
bouds bearing 8! per cent interest In aid
nj refunlipV, | should not deem II my
Juty 10 inteTpose my constitutional objec.
tiOn 10 the passage ol the present bill u
h lid not contain in its filth section provi'
Tons which In my judgment seriously Inn
psiF tho value and tend 10 the destruction
,ithe present National banking system In
,hiscOuntry, This system has now been
in operation almost twenty years. No
Ssler nor more beneficial banking system
Tas ever established. Its advantages as Q
hpguess are free to all who have the nee.
esssry capital. It furnishes currency to
tbe public which for convenience and the
security Of the bill holder has probably
never been eQualled by that oil any other
banking system, Its notes are secured BY
A deposit with the Government OF interest
Nearing bonds The section oil the bill be.
loveme which relates to the National bank
inc system, and TO which objection 10
made, isnOt an essential part ol refund.
ING measure. II Ia as follows:
SEC. 5-From aud after July first,
1881, three per cent bonds, authorized by
the first section Of this aCt,shall be the only
honda receivable as security for National
Bank circulation, or as security for the
sale keeping and prompt payment OF pub
lie money deposited with such banks, but
when any such bonds deposited for the
purpose aforesaid shall be designated ior
purchase or redemption by the Secre'
lSry Of the Treasury, the banking assoCla'
ton depoSiting the same shall have tho
right to substitute other Issues OF bonds OF
the United States In lieu thereof, provided
no bond upon which the interest has
ceased, shall be accepted or continued on
deposit az security for the circulation or
for the safe keeping Of public money, and
in case the bonds 10 deposited shall not be
withdrawn, as provided by law, within
thirty days after the interest has ceased
thereon, the banking association depoeiting
the same shall be subject to the liabilities
and proceedings on the part Of the
Comptroller provided for In section
59Si Of the Revised Statutes OF the United
States; and provided further, that section
four Of the act Of June 80, 1874, entitled
AN act fixing the amount OF United
States notes, providing for the redistIlbu
ilon Of national bank currency, and iol
other purposes be, and the same is here
by repealed, and sections 1850 and 8, 100 o.
the Revised Statutes are hereby re.enaCted
Under this section II Is obvious tha
no additional banks will hereafter b
organized, except possibly In few citieI
OF localities where the prevailing rates o
interest In ordinary business are extreme
ly low. No new banks can be organized
and no increase Of the capital OF exiatinI
banks can hooblained except by the pur
chase and deposit OF three per cent bonds
No other bonds Of the United States car
be used ior the purpose. There are onl
thousand millions OF other bonds recently
Issued by the United States, and bearing
higher rate Of interest than three per cent
and therefore, better security for the bill
holders, which can not, after thl
nist oil July next, be receives
as security for bank circulation. This 4
aiadical change in the banking law.
takes from the banks the right they hay
heretofore had under the law 10 purChas
and deposit as security for their circulation
any Of the bonds issued by the Unite
States, and deprlves the bill holder Of th
best security which the banks are able |
give, by requiring them 10 deposit bond
having the least value Of any bonds issue
by the Government. The average rate q
taxation Of the capital employed In bSnk
Ing is more than double The rate Of taxa
ton upon the capital employed In othe
legitimate business. Under these circum
stances, TO amend the banking law 80
iodeprive the banks of the advantage O
securing their votes by the most valuabl
bonds lF1ued by the government, will
It's believed, In q large part OF the coun
Try, be q practical prohibition Of ths OF
gAniIInE Of new hanks, and prevent exist
,,nE banks from enlarglng their capital
Tie national banking system, II continue,
all, will bB monopoly Ia the hands O
those already engaged IL II, who may pui
ehase government bonds bearing a NOR
favorable rate Of interest than 3 per cen
bonds prior TO next July.
To prevent iufther organization Of bank
Is to put in jeopardy the whole SyI
lem ny taking from ii that feature I'D
makes 1t, as II now is, a banking ByI
lem lFee upon the same tetms 10 ali VIII
wisH to engsge In 1t. Even The existiD
taa pAnEs WI be In danger Of being drive
ssm'. ,V", WV business by additional disAt
xanWlaees ". " Y which they will be BubieCte
Dy lHis h BY In short, | cannot bSt +,
Esra Tue flllh section Of The biil AZ A sie
IN the direction Of The deStructIet NJ V'V
try. '''N VI 'u' U'ul
Alter . long period Of stsopatto
business has just entered nj t,pop S ! pSO cs,S,
Of unexampled prosperity, Tbs OSiII mi
drawal Of their currency rom fn cl,sSIi cii
ton by The National BsntS tVu, Az
The enforced winding up % oi n n
UanEs In consequence, would ineviiabl
bring ser ious embarrassment And ijSS
Iet to the business oi the country, BaNi
Of issue ate The essential ihslfunAhlS
modern commerce, II The pfesSnt an
Giant and nIu,t..l.I. lA