Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1894-04-05
VETOED.
The Presidents Objections to the
Seigniorage Bin.
He Returns the Measure to Congress with
out His ApprOval-Defscts Pointed
Out-Becomme1datIon as to
the Gold Reserve.

'sentatives the following message veto
ing the Bland silver seigniorags bill:
To the House OF representatives. return
without my approval house bill numbered
1886 entitled IAN act directing the coinage OF
the silver bullion held in the treasury and for
other purposes" -
Ny 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
could believe that the public good would not be
thereby endangered and that such action on my
part would be a proper discharge OF official
duty. Inasmuch- however. as I am unable to
either wise or oppor tune, my conception of the
obligations anu responsibilities attached TO the
great of1ice hold forbids the indulgence OF my
personal desire, and inexorably confines me to
that course which is dictated by my Ieason
and judgment and pointed out by sincere pur-
pose to protect and promote the generai1nter-
eSts OF our peope-
The financial disturbance which swept over
the country during the last year was unparal-
leled in its severity and disastrous conse-
'quences- There seemed to be almost an entire
displacement OF faith in our financial ability
and loss OF confidence in our fiscal policy.
Among those who attempted to assign causes
for our distress IL was very generally conceded
that the Grafton of provision OF law then in
force which required the government to pur-
chase monthly large amount OF silver bullion
and issue its notes in payment therefor. was
either entirely, or to a large extent, response
Bile for our condition This led to the repeal,
utory provision We had, however, fallen so
low in the depths OF depression and timidity
and apprehension had completely gained
control in financial circles that our rapid recu-
peration could not reasonably be expected
Our recovery has. nevertheless. steadily pro-
sgressed and though less than five months have
elapsed since the repeal of the mischievous sill
yer purchase requirement wholesome i'm
provement is unmistakably apparent Con.
hdence in our absolute solvency is to such an
extent reinstated and faith in our disposition
TO adhere to sound financial methods is so far
restored as to promote the most encouraged re-
suits, both at home and abroad The wheels
of domestic industry have been slowly set in
motion and the tide of foreign investment has
again started in our direction Our recovery
being well under way, nothing should be
done to check our convalescence, should
we forget that a relapse at this time would al
most surely reduce to lower stage OF
financial distress than that from which we are
just emerging
1 believe that If the bill under considera ton
should become law 1t would be regarded as a
-retrogression from the financial intentions in
-dulged by our recent repeal of the provision
forcing silver bullion purchases: that 1t would
weaken If it did not destroy returning faith and
confidence in our sound financial tendencies
and that as a consequence our progress to re-
newed business health would be unfortuna tely
checked and a return to our recent distressing
plight seriously threatened
This proposed iegisla ton is SO related to the
currency conditions growing out OF the law
eminent that a glance at such conditions and
a partial review of the law referred to- may
not be imp ofitable- Between the 14th of Au-
gust, 1897, when the law became operative, and
the LIST day OF November, 1893. when the clause
it contained directing the purchase of silver
was repealed there were purchased by the
rotary of the treasury more than 16S. OO0, QUO
of ounces of silver bullion In payment for
this bullion the gov rnment issues its treasury
notes of various denominations, amounting
to nearly SI56,OO0. COO, which notes were
Immediately added to the currency in cir ula
ton among our people Such notes were by
the law made legal tender in payment of all
debts, public and private except when other
wise expressly stipulated and were made re-
.ceivable for customs, taxes and public dues
and when SO received ay be reissued- They
q were also permitted to be held by banking as
.sociations part of their lawful reserves. On
the demand Of the holders these treas ury notes
were to be redeemable in gold or silver coin In
the discret ton of the secretary of the treasury;
provision that 1t was 1.-The estab lished policy of
the United States 10 maintain the two metals
on a parity with each other upon the present
leyal ratio or such ratio as may be provided by
law" The money coined from such bullion was
to be standard silver dollars, nd after direct
ing the immediate coinage OF a little less than
28,0O0U00 ounces the law provided that as much
of the remaining bullion should be thereafter
coined as might be necessary to provide for the
redemption OF the treasury notes issued on its
purchase and that any gain or seigniorage arts
ing from such coinage shall be accounted for
and paid into the treasury.
This gain seigniorage evidently indicates
much OF the bullion own d by the govern
ment should remain after using a sufficient
amount to coin as many standard silver dollars
as should equal in number the dollars repre-
sented by the treasury notes issued in payment
OF the entire quantity of bullion. These treas
ury notes now outstanding and in circulation
amount to SI52, 95l, ESQ and although there has
been thus far but comparatively small amount
of this bullion coined, yet the called gain or
-seigniorage as above Defined which would
arise from the coinage of the entire mass. has
been easily aScertained to be quantity of
bullion sufficient to make when coined So 1856 6sI
standard silver dollars
Considering the present intrinsic relation be-
tween gold and silver the main of the
parity between the two metals, as mentioned
in this law, can mean nothing less than the
maintenance of such a 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 accom-
plished so far as it is affected by these treasury
notes, and in the estimation OF the holders OF
the same, by giving to such holders, on their
redemption, the coin. whether 1t is gold or sill
yer which they prefer 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 discretion If opposed to the demands OF the
holder, is entirely inconsistent with the effect
i've and beneficial maintenance Of the parity
between the two metals
II both gold and silver are TO serve us as
money and II they together are to supply our
people a safe and stable currency, the necessity
of preserving this parity is obvious Such ne
-cessitv has been repeatedly conceded in the
platforms OF both political parties and in our
federal statutes It Is nowhere more emphatic
ally recognized than in the recent law which
repealed the provision under which the bullion
now on hand was purchased This law insists
upon the maintenance of the parity in view OF
the common use OF the two m-tals and equal
power of every dollar at all times in the market
and the paym ent OF debts" The secretary of
the treasury has therefor for the best reasons
not only complied with every demand for the
redemption of these treasury notes in gold. but
the present situation as well as the letter and
spirit of the law, appear plainly to Justify, If
they do not entoin upon him, 9 continuation of
such redemption
The conditions have endeavored to present
may be thus summarized:
First-The government has purchased and
now has on hand suficient silver bullion to
permit the coinage of all the silver dollars
necessary 20 redeem, in such dollars. the treas
ury notes issued for the purchase of said silver
bullion and enough besides TO coin. as gain or
=seigniorage, 55,l5e,6Sl additional standard
silver dollars
Second-There are outstanding and now In
circulation treasury notes issued in payment OF
the bullion purchased amounting to si5s. o5f $50.
These notes are legal tender in payment OF all
debts public and private. except when other
wise expressly stipulated. they are receivable
Al A. 49,