Morning journal and courier., 1881-03-04
The President here quotes the fifth sec ton of the bill and continues:

Under this section it is obvious that additional banks will hereafter be organized except possibly in
 few cities localities where the prevailing rates of interest in ordinary business extremely low No new banks can be organized and no increase of the capital of existing banks be obtained except by the purchase and deposit of three per centnm bonds No other bonds of the UnitedS tates be used for bonds recently issued by the United States and bear ing higher rate of interest than three cent and after the first of July next be received security for bank circulation. This is radical change in the banking law It takes from the banks the right they have heretofore had under the law to purchase and deposit security for their circulation of the bon issued by the United States, and deprives the bill holder of the best security which the banks able to give by requiring them todeposit bonds hav ment. The average rate of taxation of capital em- ployed 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 to deprive the banks of the advan bonds issued by the government will it is believed in
 large part of the country be practical prohibition ing banks from enlarging their capi- taL The national banking system, if con hands of those already engaged It who may pur. chase government bonds bearing more favorable next July. To prevent the further organization of banks to put in jeopardy the whole system by talk banking system free upon the terms to all who wish to engage in it. Even the existing banks will be danger being driven from business by the addi- tonal disadvantages to which they will be subjected by this bill.
 In short, cannot put regard the nun Sect10n Of the bill step in the direction of the destruction of the national banking system Our country, after
 long period of business depression has just entered upon a of unexampled prosperity Withdrawal of the currency from circulation by the national banks and the enforced winding up of the banks in consequence would inevitably bring serious ennbar- rassments and disaster to the business of ths country Banks of issue essential instruments of modern commerce. If the present efficient and admirable system of banking is broken down, it will inevitably be followed by recurrence to other and inferior methods of banking. Any looking to such result will be disturbing element in financial system It will destroy con ddence and surely check the growing prosperity of the country. Believing that measure for refund ing the national debt is not necessarily connected with the National Banking law, and that any refund ing act will defeat it's object if it imperilled national banking system or seriously impaired it's usefulness and convinced that section of the bill before me would, if it should become a law work great harnn herewith return the bill to the House of Representatives for that further consideration which is provided for in the Constitution,
 RUTHERFORD B. HAYES.
 Fxeeutive Mansion. March B. 1S8I.