The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1894-04-07
BLAND BILL VETOED.
Message From tho President on
the Seigniorage Coinage Bill.
The Masure Returned to Congress Dis
npprored-The Grounds for the
i'residsPt's Artian Stated In
Comprehensive f6tws.

/ WASHINGTON, March 29.-The follow
ing is the full text of the president!
message vetoing the Bland seigniorag'
bill:
To THE HOUSE or REPRESENT ArfvRs-I re
turn w.,hout my approval house bill No. 1886
/ entitled An act dtfcc.irg TIE coinage Of th'
silver bullion held in the treasury and for othe
purposes"
My strong desire to avoid disagreement Will
those in both houses OF congress who hav,
/ supported this bill would lead me to approvl
| 1t IL could believe that the public good woulI
I not be thereby en- lanyer and that such nc
! tiOn on my part would he proper discharge o
official duty. Ina a,mach. however. as l am un
/ able 20 satisfy myself that the proposed legis
| latfoa is either wise or oppoftune. my cuncer
/ tion OF the obligations aEd respoIsibili
Tics attached ID thr gfeat rf'cc I ..hcl,
! forbids the indulgence OF my personal desire
and inexoratly confines me to that cours,
( which is dictated by my reason and Judgment
and pointed out by n sincere purpose to pro
[ tect and promote the general interests OF oul
people.
Thc financial disturi ance which swept ovel
the country during the last year was un
paralleied in Its severity and disastrous con
sequences. There seemed TO lie almost an en-
! tire displacement ~ fai'h IN our fuancia
ability and Il loss of confidence IN our flsCa
poll y. Among those who attempted to assigI
causes for our distress IL was very generally
conceded that the operation of a provision o.
law then In force, which required the govern
ment to purchase monthly large amount o
silver bullion and issue Its notes in payment
therefor, was either entirely, or "a
large p~tcrt, responsible for aui
condition. This led to the repeal. On tie fts
day OF November, 1898. Of this statutory pro
vision We had however, fallen so low in tht
depths OF depression, and timidity and appre
hension had so completely gained control in
financial circles, that our rapid recuperatioI
could not be reasonably expected Our recov
cry has nevertheless. steadily progressed. and
though less than five months have elapsed since
the repeal OF the mischieypus silycrpurchaSe
requirement. a wholesome improvement is Itn
mistakably apparent. Confidence In our ahso
Lutte solvcncy Is to such an extent reinsuated
and faith in our disposition to adhere
TO sound financial methods Is SO far
restored as 70 produce tao most eDcnurasinl
resal,s 10th at home and atroal. The wheels
pr domestic industry have been slowly set in
molten and the tide of foreign investment has
again Started in our direction. Ou: ffc6eer-
Icing SO well un.ler way nothing should he
We forget that 4 relapse at this time would al
most surely reduce us to n lower stage OF finan.
cill distress than that from which We are just
emerging. ! believe that If the bill under con
sideration should become u law il would be re.
Carded as 4 retroGrcssiou from the financial
intentions indicated by our recent repeal
OF the provision forcing silver bullion
purchases: that it woIld weaken. II it did not
destroy. returning faith and confidence In our
soTEi financial tendencies, and that as . con,
sequence our Progress to renewed business
return TO our recent distressing plight seri.
ously threatened This proposed Legislation
is SO related to the currency conditions grow.
ing out of the law compelling the purchase of
Su'h conditions and partial rrviev Of the
law referred TO mag not be unproa,ablc
Between the lith day OF August. 1897, when
the law became operative. and the LIST day of
November. 1888. when the clause 1t contained
directing the purchase of silver was repealed.
there were purchased hy the secretary of the
silver bullion In payment; for this
bullion the government issued IL treasury notes
OF various denominations. amounting to nearly
sl56oOOol. which notes were Immediately
added 10 the currency in circulation among. our
people. such notes werS by the law made
legal tender in payment OF ali debts public and
private except when Otherwise expressly slip
ulated and were made receivable Tor customs.
taxes and all public dues. and when so resolved
might lie rcisSued. They were also permitted
to lie held hy banking associations as 4 par; Of
their lawful reserves On the demand of the
holders these treasury notes were TO he re
deemed in gold or silver coin in the
discretion Of the secretary OF the treas
ury; Tut IL WAS dc. Jared as 4 part Of
thls redcmItio provision that it was
the established policy OF the United States to
maintain the two metals on n parity with each
other upon the present legal ratio. or such
ratio as inay lie provided by law
The money coined from such bullion was TO
he standard silver dollars. and after directing
the immediIta coinage of a little less than 2s.-
600 o ounces the law provided that as much of
the remaining bullion should be thereafter
cOined a. might lie necessary TO provide for
the TeiC nIpii ion OF the treasury notes issued on
It's purchase. and that any gain or scigniOragc
arising from such coinage shall lie accounted
for and paid into the treasury"
This gain or seigniOraSe evidently indicates
so much of the bullion owned Icy the govern
ment rs should remain. after using n sufficient
amount To coin as many standard silver dol
lars as should equal in number the dollars rep
Resented treasury w
ment OF the entire quantity Of bullion. These
treasury notes now outstanding and in cIrcula-
tion amount 10 sIIs .95l. 80 and although there
has been thus FAR but a comparatively small
amount OF IBIS bullion coine 1. yet the so-calIed
gain or seigniOra,e as above defined, which
would arise from the coinage of the entire
mass, has teen easily aScer:aiGel TO be a
quantity OF bullion sufficient u make.
when coined. 81. I5G.6sl standard silver dollars
the present intrinsic relation be-
tween gold and silver the maintenance OF the
parity between the two metals. rs mentioned
in this law. can mean nothing less Than the
Of such parity in the estimation
and confidence Of the people who use our
money in their daily transactions ManifeStly
the maintenance of this parity can only be ac-
complished so far as il is affected 10y these
treasury notes. and in the estimation of the
holders of the same. Iy giving to such holders.
on their redemption, the coin. whether II is
gold or silver, which they prefer. Ii fol-
lows that while in terms the law leaves
the choice. OF CON to be paid on
of the ,reasury. the exercise
Of this discretion. il opposed 10 the demands of
the holder, Is entire-y inconsistent with the
effective aud beneii'ial maintenance Of the
parity between the two metals
II both gold and silver are to serve US as
money. and il they together are 10 supply to
our people 4 safe and stable currency tine ne
cessiiy of preserving this parity is obvious
Such necessity has been repeatedly conceded
In the platforms OF 10th political parties and
In our federal statutes. 1t is nowhere more
recogn izcd than in the recent
law which repealed the provision un;ler which
the bullion now on hand was purchased This
law insists upon the maintenance OF the parity
In value of the coins Of the two metals and the
Equal power OF every dollar at ali times in the
markets and in the payment OF debts"
The secretary OF the treasury has therefore.
'or the best of reasons. not only promptly COM
Piled with every demand for the redemption OF
hese treasury notes in soid, but the present
situation, as well as the letter and spirit of the
aw appear plainly to justify, If they TO not en-
oin upon him. continuation of such redemp.
ion. The conditions l have endeavored TO
present may be thus summarized:
F'irst-The government has purchased. and
low has on hand. sufficient silver bullion to
permit the coinage OF all the silver dollars
necessary TO redeem. in such dollars, the treas
iry notes issued for the purchase of said silver
IulIion. and enough besides to coin. as n gam
IT seigniorage, -, I'D ,6sI additional standard
iilver dollars.
Second-There ar. outstanding and now in
OL
he bullion purchased amounting to sl52.95l.
50 These notes are legal tender in payment
Il all debts public and private, except when
'tlerwise expressly stipulated; they are re-
ei-eable for customs. taxes and all public
lLes: when hell by banking associations they
nay he counted as part OF their lawful re-
ewes. and they are redeemed by the govern
neut in gold at the option Of the holders. 3
These advantageous attributes were deliber |
tely attached to these notes at the time Of |
heir issue. they are fully understood Iy our |
'cople to whom such noteS have been dis
ributed as currency, and have inspired con- |
lence in their safety and value. and haze un-
thus Induced their continued and !
onte ntcd use as money. instead Of anxiety for |
heir redemption
Having referred to some incidents which l |
eem relevant to the subject. IL remains for me 1
o submit 4 specific statement Of my objections |
0 the Till now under consideration.
This ill consists of two sections, excluding /
ne which merely appropriates sum sufficient /
0 carry the act into effect
The first section provides for the immediate
oinage of the silver bullion IN the treasury |
'bich represents the so-called gain or seign-
lrlGe or which would arise from the coinage !
all The bullion on hand. which gain or seign-
Drase this section declares TO be 50 l55.6el.
directs that the money so coiEed, or the GER
tcates issuel thereon shall lie used in the
aynIent of public expenditures. and provides /
nat II the needs OF the treasury demand 1t,
ne secretary of the treasury may. in his |
secretion. issue silver certificates in excess OF
lch coinage. not exceeding the amount OF /
signiorage in said section authorized to be
oined-
The secca3 section directs that so soon as
ossibie after the coinage OF this seigniorage
10 remainder of the bullion held by the gov
rnmen: shall be coined into legal-tender
andard silver dollars. and that they shall be
ED in the treasury for the redemption Of the
'easury notes issued in the purchase Of bull
on. II provides that as fast as the bullion
1alI be coined for the redemption Of said