The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1894-04-05
VETOED.
The Seigniorage Bill No Good,
Says the President.
Reasons For His Objections to the
Measure Clearly Stated.
1t Would Rob the Country of What Gold
We Now Have and Create n Renewal
of Distrust ON All Sides-The
Bill Is Also Faulty.

Bill Is Also faultys
WASHINGTON, March 30-The presi-
dent Thursday sent the house of repre-
sentatives the following message Veto
ing the Bland silver seigniorage bill:
To the House of Representatives:
return without my approval house bill num-
bered 1896, entitled "An act directing the coin
age OF the silver bullion held in the treasury
and for other purposes. My strong desire 10
avoid disagreement with those in both houses OF
congress who have supported this bill would lead
me 10 approve it II 1 could believe that the
public good would not be thereby endangered,
and that such action on my part would be q
proper discharge OF official duty. 1nasmuch,
however, as am unable TO satisfy myself that
the proposed legislation is either wise or op.
perfume, my conception OF the obligations and
responsibilities attached 10 the great office
hold forbids the indulgence Of my personal de-
sire, and inexorably confines me to that course
which is dictated by my reason and judgment
and poin led out by sincere purpose to protect
and promote the general interests Of our people
The financial disturbance which swept over
the country during the last year was un.
PARALLEL in It's severity and disastrous con-
sequences. There seemed to be almost an en-
tire displacement of faith in our financial abil.
ity and q loss Of confidence in our fiscal policy.
Among those who attempted to assign causes
for our distress IL was generallt conceded that
the operation OF provision Of law then in
force which required the government to
purchase monthly large amount OF ali
yer bullion and issue its note In payment there
for was either entirely, or to large extent ro-
sponsible for our condition his led TO the re-
peal on the first day Of November, 1893 Of this
statutory provision. We had, however, fallen
30 low in the depths of depression and timidity
and apprehension had SO completely gained
control in financial circles that our rapid recu-
M reaa0na6av q pActed
Our recovery has, nevertheless steadily prog.
reesed, and though less than fve months
have elapsed since the repeal Of the mis-
chievious silver purchase requirement,
wholesome improvement Is Enthusiastically
apparent. Confidence in our absolute sol.
vency is to such an extent reinstated and faith
in our disposition to adhere TO sound financial
methods is so far restored as to produce the
most encouraging results both at home and
abroad.
The wheels of domestic industry have been
slowly set in motion and the tide OF foreign In.
| vestment has again started In our direction
Our recovery being so we'll under way, moth
| ing should be done to check our cenvalesence,
| nor should we forget that relapse at this time
| would almost surely reduce us to lower stage
| Of financial distress than that from which we
are just emerging.
Ibelieve that II the bill under consideration
| should become q law, 1t would be regarded as
| retrogression from the financial intentions in.
dicated by our recent repeal OF the provision
| forcing silver bullion purchases, that IL would
| weaken II 1t did not destroy returning faith
| and confidence in our sound financial tenden-
| cies, and that as o consequence our progress to
| renewed business health would be unfortunately
| checked and q return to our recent distressing
| plight seriously threatened This proposed
legislation is SO related to the currency condl.
| tions growing out Of the law compelling the
| purchase of silver by the government that q
glance at such conditions, and partial review OF
the law referred TO- may not be Improbable.
Between the 14th day OF August, 1890. when
| the law became operative and the lst day OF
November, 1898, when the clause IL contained
directing the purchase OF silver was repealed,
| there were purchased by the secretary Of the
treasury more than 16s,0Q9oOQ ounces Of sill.
| yer bullion. In payment for this bullion the
| government issued its treasury notes of vnri-
Gus denominations, amounting to nearly one
hundred and ifty-six millions of dollars which
notes were added to the currency in circulation
among our people. Such notes were by the
law made legal tender in payment for. all
debts, public and private except when other
wise expressly stipulated, and were made re-
ceivable for customs, taxes and all public dues
and when so received might be reissued. They
were also permitted to be held for bank
ing associations as q part OF their lawful
reserves On the demand of the holders these
treasury notes were to be redeemed in gold ol
| silver coin in the discretion Of the secretary o
the treasury; but 1t was declared as q part Of
this redemption provision that it was 1.-The es
| tablished policy Of the United States to main
tain the two metals on parity with each Other
upon the present legal ratio or such ratio a!
| may be provided by law" The money coine(
from such bullion was to be standard silve
dollars, and after directing the immediate coin
age Of q little less than twenty-eight milliol
ounces the law provided that as much OF tn
remaining bullion should be thereafter coine'
as might be necessary to provide for the re
| o,,,io - nntn ic0n nv 4
purchase. and that ANY gain or segniorag
arising from such coinage shall be accounte'
for and paid into the treasury"
This gain or seigniorage evidently indicate
so much of the bullion owned by the governmen
as should remain after using sufficient amour
to coin as many standard silver dollars Q
should equal in number the dollars represente
by The treasury notes issued in payment OF tn
entire amount OF bullion. These treasury note
now outstanding and in circulation amount I
$i52, ,95l ,280, and although there has been thu
| far but a comparatively small amount OF thl
bullion coined yet the so-called gain or seigniol
| age as above defined, which would arise froI
| the coinage OF the entire mass, has been easil
ascertained to be of q certain quantity OF bu
| lion sufficie;t TO make when coined hfty-hV
| millions one hundred ffty-six thousand six hun
dred and eghty-one standard silver dollars.
Considering the present intrinsic relation b.
tween gold and silver the maintenance OF III
parity between the two metals as mentioned
| this law, can mean nothing less than the mall
ienance of such a parity in the estimation an
: confidence of the people who use our money
their daily transactions. Manifestly the mali
tenance of this parity can only be accomplishe
so far as it is affected by these treasury note
and in the estimation of the holders Of the sam
by giving 10 such holders on their redemptie
the coin Wheth it is gold or silver, whit
they prefer. 1t follows that while in tern
the law leaves the choice Of coin TO be paid {
such redemption to the discretion Of the sc
rotary of the treasury, the exercise OF this di
cretion if opposed to the demands OF the hol
er, is entirely inconsistent with The e1ecti
] | and beneficial maintenance Of the parity b
, | tween the two metals. II both gold and silv
| are to serve us as money, and II they togeth
are to supplr TO our people safe and stab
currency, the necessity Of preserving this pa
I | ty is obvious Such necessity has been
peatedly conceded in the platforms OF bo
political parties and in our federal sta
, utes II is now here more emphatical
/. | recognized than in the recent law viii
repealed the provision under which I
bullion now on hand was purchased. This ls
insists upon the maintenance of the parity
5 valpe Of the coins OF the two m etals and t
n IT, 49,