Waterbury evening Democrat., 1894-03-30
BLAND'S BILL VETOED.
President Says the Seigniorage
Measure Is Dangerous.
NEITHER WISE NOR OPPORTUNE.

| structed, Faulty and Ill Advised.
| WASHINGTON, March 30-The presidents
veto of the Bland seigniorage bill was evil
IDENTIFY expected, for when the house met a
feverish anxiety was manifested. This was
| soon relieved for while the roll of the
house was being called on the contested
election case Mr.. Pruden, the presidents
executive clerk, appeared at the bar
| of the house and transmitted the presi-
| dents special message. AS Mr.. Pruden
| announced that he was directed to trans
NIT message in writing and the presi-
dents approval of sundry house bills, for
moment the Democrats believed that
possibly Mr. Cleveland had signed the
! Bland bill.
Members rushed down the aisles from
all directions and crowded about the speak
er's desk
Speaker Crisp himself broke the seal,
One glance was enough. 1T is a veto"
said he, and the word was passed from lip
to lip.
The news was received with mixture
of joy and sorrow. To a large majority of
Democrats the news was u severe blow,
and their expressions of dissatisfaction in
some cases were loud AM emphatic The
Republicans seemed to be greatly elated
at the confusion and havoc created in the
Democratic camp by the message
The presidents veto message lid not
create any surprise in the senate. where it
was generally expected by both the friends
and opponents of the bill, with few
ceptions among silver Democrats who h,,l
held to the last the hope that the action of
congress would be sustained.
The message was in part as follows:
The Veto Message.
tn ba IJO,iCa of
return without my approval house bill num-
bered 1895 entitled An act directing the coin
age of the silver bullion held in the treasury
and for other purposes"
My strong desire to avoid disagreement with
those in both houses of congress who have sup
ported this bill would lead me to approve it if
l could believe that the public good would not
be thereby endangered, and that such action
on my part would be proper discharge Of Off
cial duty. 1nasmuch. however, as l am unable
to satisfy myself that the proposed legislation
Is either wise or Opportune. my conception of
the obligations and responsibilities attached to
the great office hold forbids the indulgence Of
my personal desire.
believe that if the bill under consideration
should become law it would be regarded as a
retrogtession from the financial intentions in.
Dictated by our recent repeal of the provision
forcing silver bullion purchases that it would
weaken, if it did not destroy, returning faith
and confidence in our sound financial tenden-
CieS, and that as a consequence our progress to
| renewed business health would be unfortunate
ly checked and Il retu@' 20 our recent distress
ing plight seriously threatened.
This proposed Legislation is SO related to the
currency conditions growing out of the law
compelling the purchase of silver by the gov
eminent that glance at such conditions and a
partial review of the law referred to may not
be Improbable.
The message then reviews the existing
financial conditions as to the quantity of
Cyo11 nd Sil nd
Having referred to some incidents which |
deem relevant to the subject. it remains for me
to submit specific statement of my objections
to the bill now under consideration.
The Presidents Objections.
This bill consists of two sections, excluding
one which merely appropriates a sufficient
to carry the act into effect. The first section
provides for the immediate coinage of the sill
yer bullion in the treasury which represents
the so called gain seigniorage which would
arise from the coinage of all the bullion on
hand, which gain or seigniorage this section
declares to be $50, ,6S1.
1t directs that the money SO coined the
certificates issued thereon shall be used in the
payment of public expenditures and provides
that if the needs of the treasury demand it the
secretary of the treasury may in his discretion
issue silver certificates in excess of such coin
age, not exceeding the amount Of seigniorage
In said section authorized to be coined.
The entire bill is most unfortunately con.
structed. Nearly every sentence presents I'M
certainty and invites controversy to its
meaning and intent. The first sentence is es-
pecially faulty in this respect, and it is ex-
tremely doubtful whether its language will
permit the contamination of its supposed pur-
poses.
am not willing. however, to rest my objec-
ton to this section solely on these grounds In
my Judgment sound finance does not commend
further infusion of silver into our currency
Mt this time unaccompanied by further ade-
quate provision for the maintenance in our
treasury of safe gold reserve.
Uncertainties of Expression.
Whatever else may be said of the uncertain
ties of expression i'll this bill, they certainly
ought not TO be found in legislation affecting
subjects so important and farreaching as our
finances and currency. In stating other and
more important reasons for my disspproval OF
this section shall, however. assume that i'm:
der its provisions the treasury notes issued in
payment for silver bullion will continue to be
redeemed, as heretofore, in silver or gold at the
option of the holders and that if, when thdy
are presented for redemption reach the
treasury in any other manner, there are in the
treasury coined silver dollars equal in nominal
value to such treasury notes then and in that
case notes will be destroyed and silver certiti-
Gates to an equal amount substituted.
am convinced that this scheme is i'll ad-
vsed and dangerous AS ultimate result of
its operations, treasury notes. which are legal
tender for all debts. public and private, and
which are reOeenaDle IN GOlQ or silver, at the
option of the holder, will be replaced by silver
certificates which. whatever may be their char
acter and description will have none of these
qualities.
In anticipation of this result and as an imme.
diate effect the treasury notes will naturally
appreciate in value and desirability. The fact
that gold can be realized upon Them and the
further fact that their destruction has been de-
creed when they reach the treasury must tend
to their withdrawal from general circulation
,l,y
ton or to be boarded for presentation at more
convenient season. The sequel of both operas
tons will be large addition to the silver cur
rency in our circulation and corresponding
reduction of gold in the treasury. Tho argu-
ment has been made that these things will not
occur at once because long time must elapse
before the coinage of anything but he seign=
forage can be entered upon. If the physical
effects of the execution of the second section Of
this bill not to be realized until far in The
future, this may furnish a strong reason why ii
should not be passed so much in advance. But
the postponement of its actual operation can
not prevent the fear and loss Of confidence and
nervous prostration which would Immediately
follow its passage and bring about its worse
consequences.
should Strengthen Gold Reserve.
regard this section of the bill as embodying
plan by which the government will be obliged
, to pay out its scanty store of gold for other
purpose than to force an unnatural addition
of silver money into the hands of our people.
This is an exact reversal of the policy which
safe finance dictates if we are to preserve par.
tty between gold and silver and maintain
sensible bimetallism.
When 1t is proposed to initiate our silver cur
rency, it is time for strengthening our gold re-
serve instead of depicting it. l cannot conceive
of longer step toward silver monometallsm
than We take when we spend our gold to buy
silver certificates for circulation, especially in
view of the practical difficulties surrounding
the replenishment of our gold.
This leads me to earnestly present the desira-
blity of granting to the secretary of the treas
ury better. power than now exists to issue
bonds to protect our gold reserve when for any
reason 1t should be necessary. Our currency Is
in such a confused condition and our financial
, affairs are apt to assume at any time critical
position that it seems to me such course is
dictated by ordinary prudence.
am not insensibe to the arguments in favor
of coming the bullion seigniorage now in the
treasury. and l believe it could be done safely