The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1894-04-18
THE BLAND BILL VETOED.
THE PRESIDENT OPPOSES THE
COMING OF sEIGNIORAGE.

he Declares the Measure to Be Ill
Considered, Carelessly Drawn
and Contrary to Sound Policy
Its Operation Would Impair Our
Credit at Home and Abroad.
Executive Clerk Pruden has transmittedto
the House of Representatives President
Cleveland's special message yetoing the
Bland seigniorage bill. The President puts
1t on the ground that the bill Is loosely
drawn and would rob US OF our gold.
he says he believes the coming OF
the bullion seigniorage might be
safely and advantageously done provided
authority were given the Secretary OF the
Treasury to issue bonds at low rate OF in
terest. He expresses hope for compre-
hensive adjustment Of our monetary affairs
In short time In a way to accord to silver
Its proper place In our currency.
The message is In accord with the policy
which Mr.. Cleveland had hitherto laid down.
In the opening paragraph Is contained the
gist of the Presidents reasoning:
"My strong desire to avoid disagree
ment with those in both Houses Of Con-
gress who have supported this bill
would lead me to approve it If could
believe that the public good would not
be thereby ENDANGERED, and that such action
on Iny part would bs proper discharge OF
official duty. Inasmuch, however, as am
unable to satisfy myself that the proposed
legislation Is either wise or opportune, my
conception ofthe obligations and responsible
tiles attached to the great office I 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 pointed out by a sincere pur-
pose to protect and promote the general In
terest of our people"
After referring to the repeal CT the Sher-
man act, and the gradual revival Of business
which has followed, Cleveland says.
"I believe that. il the bill under consider
alton should become law. 1t would be re-
garded as retrozression from the financial
intentions indicated by ou- recent repeal Of
the provision forcing silver bullion pur-
chases, that It would weaken II 1t did not de-
stroy returning faith and confidence In our
sound financial tendencies, and that, as q
consequence, our progress to renewed bust-
ness health would be unfortunately checked,
and return to our recent distressing plight
seriously threatened"
Explanation OF the seiSniorage bill fol-
lows, and 1t is disposed of in few sentences,
In which the President inquiries how the So
called gain or seigntorage, amounting to
S55, ,156, ,6S1, can provide for retiring out
standing notes in circulation exceeding S152,-
e57. 1000.
''It follows that while in terms the law
leaves the choice Of coin to be paid on such
redemption to the discretion OF the Secretary
Of the Treasury, the exercise Of this discre-
tion, II opposed to the demands of the holder,
Is entirely inconsistent with the effective and
,;nlx fnka ~ fbo rit hot
thetwo metals.
"If both gold and silver ore to serve Us as
money, and II they together are to supply to
our people safe and stable curreEcy, the
necessity Of preserving this parity Is obvl-
ous."
Specific objections are strongly stated
"The entire bill Is most unfortunately con-
structed. Nearly every sentence presents un-
certainty and invites controversy as to its
meaning and intent The first section Is es-
pecially faulty In this respect, and 1t Is ex-
tremely doubtful whether its language will
permit the consummation of its supposed
purposes.
st am led to believe that the promoters Of
the bill intended this section t. provide for
the coinage of the bullion constituting the
gain, or seigniorage, as it Is called, into
standard silver dollars, and yet there Is
positively nothing in the section to prevent
Its coinage into any description of silver
coins now authorized under any existing
law.
II suppose this section was also intended,
In case the needs Of the Treasury called for
money faster than the seigniorage bullion
could actually be coined, to permit the issue
Il silver certificates In advance # such COIN
age but its language would seem to permit
the issuance Of such certificates to double
the amount of seigniorage as stated, one-half
OF which would not represent an ounce OF
silver in the Treasury"
Dealing then With the ambiguous phrase
ology OF the measure the President reveals
the difficulties which the Treasury Pcpart'
ment would labor under in eudeayor1Eg to
carry out its provisions. He says
"I am convinced tnat this scheme Is Ill
advised and dangerous. AS an ultimate re-
suit of its operation Treasury notes which
are legal tender for all debts, public aud
private, and which are redeemable IL gold
or silver, at the option of the holder, will be
replaced by silver certificates, which what.
ever NAV be their character and description,
will lave none IF these qualities.
SIN anticipation Of this result, and as an
immediate effect, the Treasury notes will
naturally appreciate in value and destra.
upon them, and the further fact that their
destruction has been decreed when
they reach the Treasury must tend
to their withdrawal from gen.
eral circulation to be Immediately
presented for gold redemption, or to be
boarded for presentation at more convent
ent season. The sequel Of both operations
will be large addition to the silver currency
in our circulation and corresponding re-
duction OF gold in the Treasury"
The President then advocates granting the
Treasury broader power than now exists tor
the issue of bonds TO protect the gold re-
serve, concluding thus:
..I am not insensible to the arguments in
favor cf coming the bullion seigniorage now
in the Treasury, and believe 1t could be
| done safely and with advantage, ifthe Secre-
| tary of the Treasury had the power to issue
bonds at a low rate Of interest under
authority IN substitution of that now exist
ing and better suited 10 the protection ofthe
| Treasury.
II hope a way will present itself in the
near future for the adjustment OF our none.
tary affairs in such a comprehensive and
conservative msnuar as will afford to silver
| its proper place In our currency but IN the
| meantime I am extremely solicitous that
whatever action We take on this suoJec'
NAV be such as to prevent loss and dlscour'
agemenr to our people at home, and the de-
struction OF confidence in our financial mnn'
arement abroad. "GRoyER CLEVELAND,
"Executive Mansion. March 20. 1884"