The record-union., 1894-03-30
sneclal 10 the REcoRp.UN1ox.

w ASHINGTON. MdTcu zJs-A uo L AOSi-
dent has sent 10 the House the following
message vetoing the Bland silver seign-
forage bill:
TO the House Of RepreSen totiUes: return
without my approval House bill numbered
1856 entitled IAN Act directing the coinage
OF silver bullion held in the Treasury and Ior
other purposes"
My strong desire to avoid a disagreement
with those IN both houses OF Congress VINO
have supported this bill would lead me to ap-
prove OF 1t. if could believe that public good
would not be thereby endangered, and that
such action on my part would not be proper
discharge OF official duty.
Inasmuch, however, as am unable 10 sat
isfy myself that the proposed legislation is
either wise or opportune, my conception OF
my obligations and responsibilities attached
10 the great office which hold torblds the IN
oulgence of my personal desire and inexora-
bly, confines me to that course which Is dlc-
tated by my reason ana judgment, ana
pointed out by a sincere purpose TO protect
and promote the general interests OF our peo-
pie.
The financial disturbance which swept over
the country last year was unparalleled in its
severity and disastrous consequences. There
seemed to be an almost entire displacement of
faith in our financial ability and loss of conf
dence in our fiscal policy. Among the causes
attempted to be assigned for our distress. was
the very generally conceded operation OF the
provision OF the law then in force, which re-
quired the Government to purchase monthly
"A large amount of silver bullion and issue its
notes IN payment therefor, ana which was
either entirely or TO large extent responsible
for our condition. This led to the repeal on
the first day of November, 1898, OF this stat
utory provision. We had, however, fallen so
low In the depths of depression and timidity,
and apprehension mad so completely gained
control in financial circles, that our rapid re-
cuperation could not be reasonably expected.
Our recovery has nevertheless steadily pro-
crossed and although less than five months
have elapsed since the repeal OF the mischiev-
Gus silver purchase requirement, whole
some improvement is unlnislakably appa-
rent. Confidence in our absolute SolVency IS
10 such an extent reinStated, and faith in our
disposition to adhere to sound financial meth
DDS are so tar restored. as to produce the most
encouraging results, both at home and
abroad The wheels OF domestic industry
nave been slowly set in motion, and the tide
of foreign investment has again started in our
direction.
our recovery being so well under way, moth
ing should be Gone to check our GONZALES
cence nor should we forget that relapse at
this time would almost surely reduce us TO "a
lower stage of financial distress than that
from when we have Just emerged.
| believe if the bill under consideration
should become a law it would be regarded as
a retrOgression from our financial Intentions
INDUCED in by our recent repeal OF the prOVlS-
ion forcing silver bullion purchases; that it
would weaken il not destroy tie returning
faith and confidence in our sound financial
tendencies and that as n consequence our
progress TO renewed business hed)tu would be
unfortunately checked, and a return 10 our
10 ent distressing plight seriously threatened.
his prOOOsed legislation is so related TO the
currency conditions growing out OF the law
compelling the purchase OF silver by the Gov
eminent that q glance at such conditions and
q partial review OF the law referred to. may
not be Improbable
Between the l4th day of August 1890
when the law became operative, and the 1st
day of November. S93, when the clause it
contained directing the purchase of silver was
repealed, there were purchased by the Secre-
tary of the Treasury more than 16S, 100000
ounces of silver bullion. In payment for this
bullion the GOVernmon mt issued Treasury notes
of various denominations, amounting to
nearly 81 90. .OO0,000 which notes were i'm
mediateiy added to the currency in circuIa-
ton among our people. Such notes We're by
law made a legal tender in payment of all
debts, public and private, except when other
wise expressly stipulated, and were made re-
ceivable Tor customs, taxes and all public
dues and when received might be re-
is ued
They were also permitted to be held by
banking associations as part of their lawful
reserves.
ON demand of the holders these Treasury
notes were to be redeemed in gold or silver
coin at the discretion OF the Seci etary of the
Treasury, but IL was declared, Il part OF this
redemption psovision that it was the estab-
lished policy of the United States to main-
tain the two metals on parity with each
other upon the present legal ratio, or such
ratio as may be provided by law, the money
coined from such bullion 10 be standard sill
Yer dollars; and after directing the immedi-
q
ounces the law provided that as much of the
remaining bullion should thereafter be coined
as might oe necessary to provide for the re-
demptiOn of the Treasury notes issued on its
purchase, and that "any gain or seigniorage
arising from such coinage shall be accounted
for and PAID into the Treasury"
This gain. or seignioTage, evidently indl-
Gates so much of the bullion owned by the
Government as remains after using suffi-
cient amount TO coin as many standard sill
yer dollars as should equal in number the
dollars represented by Treasury notes issued
in payment of the entire quantity of bullion.
These Treasury notes, now outstanding and
in circulation. amount to S152, ,951 ,2S0 and,
although there has thus lar been but COM
paratiNely small amount OF this bullion
coined vet the so called gain or SelgniOrage,
as above defined, which would arise from the
coinage of the entire mass, has been easily
ascertained 10 be quantity OF bullion Suftl-
cient to make, when coined, 55.156. .6S1
standard silver dollars.
Considering the present intrinsic relation
be tween gold and silver the maintenance OF
the parity between the two metals as men
toned in this law, can mean nothing less than
the maintenance OF such parity IN the estima-
lion and confidence of the people who use our
money in daily transactions. Manifestly the
maintenance of this parity can only be ac-
compliShed, so far as it is affected by these
Treasury no .es and in the estimation OF hold
ers of the same. by giving such holders, on
their redemption, coin, whether gold or silver,
which they prefer.
II follows that while in the terms of the law
it leaves the choice OF the coin TO be paid on
such redemption TO the discretion OF the Sec
relary OF the Treasury, the exercise ofthis dis
creiion. il opposed TO the demands OF the
holder is entirely inconsistent with the effect
i've beneficial maintenance OF the parity be-
tween the two metals.
II both gold and silver are TO serve us as
money, and if they together are TO supply TO
our people a safe and stable currency, the ne
cesslty for preserving this parity is obvious.
Such necessity has been repeatedly conceded
in the platforms of both political parties and
in our Federal statutes. Ii is nowhere more
emphatically recognized than in the recent
law which repealed the provision under
which the bullion now on hand was pur-
erased.
This law insists rp3I the maintenance of
the parity in the vaiue OF coins of the two
metals, and the equal power of every dollar
in TIE markets and in the payment of debrs
The Secretary of the Treasury has there
fore. for the best OF reasons, not only complied
these Treasury notes in gold, but the present
situation. as well as the letter and spirit of the
law appear plainly 10 justify. if they do not
enjoin upon him, a continuance of such re-
demption.
The conditions have endeavored to present
may be thus summarized:
First-The Government has purchased, and
now has on hand. sufficient silver bullion 10
permit of the coinage of all silver dollars
necessary to redeem in such dollars the Treas
ury notes issued for the purchase of said silver
bullion and enough besides 10 coin as gain or
seigniorage $50, ,156, ,6S1 additional standard
silver dollars.
Second-There are outstanding and now in
circulation Treasury notes, issued in payment
of bullion purchased. amounting 10 81 S2-
951.2S0. These notes are legal tender in paw
ment OF all debts public and private. except
when otherwise expressly stipulated. They
are receivable for customs, taxes and all pub
lie dues, when held by banking associations.