Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-04

civil Btll Passed-Secrefary Sher.
man Resfgns-The Purchase of
Bonds with the Surplus I'm the
Treasury A AuthOrIxed Both Houses
at Work az Midnight.
WASHINGTON, March 3.-The following Is
the Presidents message to the House Of
Representatives vetoing the funding bill:
Having considered the dill entitled "An
act to facilitate the refunding of the na-
tienal debt" am constrained to return It
to the House OF Representatives in which it
originated with the following statement of
my objections to its passage:
The imperative necessity for prompt &C.
ton and the pressure of public duties in this
closing week OF nv term of Office. compel
me 70 refrain from any attempt to make
fuli aud satisfactory presentation of my
objections to the bill. M
The importance Of the passage at the
present session of Congress of q suitable
measure for the refundiDg OF the national
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. II successfully accomplished It
will secure large decrease in the annual
interest payment of the nation, and
earnestly recommend that If the bill before
me should fail, that another measure for
this purpose be adopted before the present
Congress adiourns.
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 81 per cent. interest in aid of fund
ing, / should not deem 1t my duty to In
terpose my constitutional objection to the
passage Of the present bill If 1t
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 estab-
lished. Its advantages as bust
the necessary capital. 1t further gives
currency to the public which, for the conve-
nience and security of the billholder, has
never been equalled by any other banking
system. Its notes are secured by deposit
with the government of interest bearing
bonds of the United States.
The section Of the bill before me, which
relates to tee national banking system, and
to which objection is made, is not an essen
this section It is obvious that no additional
banks will hereafter be organized, except
possibly In few cities or localities where
the prevailing rates OF interest in ordinary
business are extremely low. No new banks
can be oEgaDized and no increase OF the
capital OF existing banks can be obtained
except by the purchase aud deposit OF
three per cent. bonds. No other bonds
OF the Uuited States can be used
for the purpose. The one thousand mil
Hons of other bonds recently issued by the
United States, aud bearing a higher rate OF
interest than per cent, and, therefore, q
better security for the billholder, cannot.
after the first Of July next. be received as
security for bank circulation.
This is a radical change in the banking
law. It takes from the banks the right
they have heretofore had under the law to
purchase or deposit as security for their
circulation any bonds issued by the United
States, and depriyes the billholder Of the
best security which banks are able to give,
by requiring them to deposit bonds having
the lesst value Of any bonds issued by the
government.
The average rate OF taxation of the capi-
tai employed in banking is more than double
the rate OF taxation upon capital employed
IN other legitimate business. Under these
circumstances, to amend the banking law so
as to deprive the banks OF the advantage Of
securing their notes by the most valuable
bonds issued by the government will, it is
believed, in large part OF the country, be
the practical prohibition of the organizing
OF new banks, and prevent existing banks
from enlarging their capital.
The national banking system,i If continued
at all, will be q monopoly in the hands OF
those already engaged in it, who may pur-
chSse government bonds bearing more IA
vorable rate of interest than per cent.
bonds prior to next July.
To prevent further organization OF banks
is TO put ia jeopardy the whole system, by
taking from it that feature that makes it,
as 1t is now, banking system free, upon
| the same terms, to all who wish to engage in
it. Even the existing banks Will be
in danger Of being driven from business by
the additional disadvantage to which they
will be subjected by this bill. In abort, l
cannot but regard the fifth section OF the
bill as step In this direction.
The national banking system Of our coun-
try, after long period of bueiness depres-
sion, has Just entered upon career of I'm
! exampled prosperity. The withdrawal OF
their currency from circulation by the ma
tional banks and the enforced winding up
of the banks in consequence would inevita-
bly, bring serious impoverishment and dis
sster to the business Of the country.
Banks of issue are essential instruments
OF mOueIu II LAC piCcCh1
cfent and admirable system OF banking Is
| broken down it will inevitably be followed
by a recurrence to other and inferior
methods of banking. ANY measure looking
to such a reeult win be disturbing
element I'm our financial system. 1t
will destroy confidence and surely
check the growing prosperity OF the coun-
try. Believing that a measure for refund
ing the national debt is necessarily con
nected with the national banking law, and
that any refunding act will defeat its own
object il 1t imperils the national banking
system, or seriously impairs its usefulness;
and convinced that section five OF
the bill before me would,
If it should become law,
work great harm, herewith return the bill
to the House of Representatives for that
further consideration which is provided for
in the Constitution. r. B. HATES.
EeeeUtiVe Mansion, March 8, 1881.
HOUSE PROCEEDINGS.
In the House, after the reading OF the
journal, a message was received from the
President, which was supposed TO be a veto
message on the funding bill.
On motion of Mr.. Blount, of Georgia, the
Senate amendments to the sundry civil ap-
preparation bill were non-coRcurred In, and
q committee of conference ordered. Sub
sequently Messrs. Blount, McMahon and
Monroe were appointed as such committee.
On motion of Mr.. Bragg, of Wisconsin,
the Chairman of the Committee on War
Claims, the rules were suspended and the
bill passed, making an appropriation for
the payment of claims reported allowed by
the Commissioner of Claims.
Mr.. Cobb, of Indiana, submitted the con-
ference report on the District OF Columbia
appropriation bill.
The Presidents veto was then, at 1920,
taken from the Speakers table and read by
the Clerk. Its reading having been con-
cluded, Mr.. Tucker, Of Virginia, moved
that the message be printed and laid on the
table for future confederation.
Mr.. RobesOn, of New Jersey, moved to
nroceed to the consideration OF the message
Immedistely. The yeas aud nays were or
dered on Mr.. fuckers motion. 1t was
agreed to-yeas 135, nays 1l6. SO the mes
sage remains on the Speakers table.
Mr.. Cox, Of New York, moved to suspend
the rules and pass the apportionment bill, ,on
the basis OF 307. This meeting with oppo-
sition on the Republican side, Mr.. Cox SO
amended his motion as TO ering up
for consideration the apportionment
bill, and to have the votes taken
on the numbers 322, 3l9, 3l5 and SUI, and
when the majority shall agree on any num-
Der, to have the bill with the second and
third sections of the original bill put on It's
passage without debate or dilatOry motions.
Mr. Conger raised point of order against
the proposition, and Mr.. Cox modified 1t by
striking out the words ntor dilatory mo-