The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-04-04

WASHINGTON. March 29.-The presi-
dent today sent to the house of repre-
sentatives the following message veto
ing the Bland silver seigniorage bill.
To the House of Representatives. re-
turn without my approval house bill num-
coinage OF the silver bullion held in -
treasury and for other purposes"
My strong desire 10 avoid disagreement
with those in both houses of congress VINO
have supported this bill would lead me TO
approve IL If j could believe that the public
good would not thereby be endangered and
proper discharge OF offic al duty. Inasmuch,
however, as / am unable to satisfy myself
that the proposed legislation is either wise
or opportune. my conception Of the obliga-
tons and responsibilities attached to the
great office l hold forbids the indulgence
of my personal desire, dictated by my rea-
son and judgment, and pointed out by
sincere purpose TO protect and promote the
general interests OF our people.
The financial disturbance which swept
over the country during the last year was
unparalleled in its severity and disastrous
in consequences. There seemed 10 be almost
an entire displacement of faith in our
financial ability and loss of confidence in
our official policy. Among those who at
tempted to assign causes for our distress
IL was generally conceded that the opera
ton of a 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, responsible for our condition. This
led to the repeal on the 1st day of Novem-
Der. 1S93 of this statutory provision. We
had, however. fallen so low in the depth
of depression and timidity and apprehen-
sion had so completely gained control in
financial circles that our rapid recuperation
could not be reasonably expected.
Commercial Recovery.
Our recovery has nevertheless steadily
progressed and though less than FIVE
months have elapsed since the repeal OF
the mischievous silver purchase require
ment a wholesome improvement is unmis-
takably apparent Confidence I'm our abso-
lutte solvency is to such an extent rein
stated and faith in disposition to ad-
here to sound financial methods is so far
restored as to produce the most encourage
ing results 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 orr direc-
ton. Our recovery being so well under
way nothing should be done to check our
cOnvalescence, nor should We forget that u
relapse at this time would almost surely
reduce us to lower stage of financial dis
treSS than that from which we are Just
emerging. l believe that if the bill under
consideration should become a law il would
be regarded as retrogrcssfon from the
financial intentions indicated by our recent
repeal of the provision forcing silver bull
ion purchases; that 1t would weaken, II IL
did not Destroy returning faith and conf
dence in our sound financial tendencies
and that, as a consequence, our progress
to renewed business health would be un-
fortunately checked and a return TO our
recent distressing plight seriously threat
ened This proposed legislation is so re-
lated to the currency conditions growing
out of the law compelling the purchase Of
silver by the government that a glance at
such conditions and partial review of the
law referred TO may not be Improbable
Between the 14th day of August, 1890.
when the law became operative, and the LIST
H. ATAr~a ,teear@ ~hn ,1a
contained directing the purchase Of silver
WAS repealed, there were purchased by the
secretary OF the treasury more than
16S 100000 of ounces OF silver bullion. In
payment for this bullion the government
issued its treasury notes Of various de-
nominations, amounting to nearly Sl56.00 =
600. which notes were added to the currency
in circulation among our people Such
notes were by the law made legal tender
in payment Of all debts public and private
except when otherwise expressly stipulated,
and were made receivable for customs.
taxes and all public dues, and when so
received might be reissued. They were also
permitted 20 be held by banking assoeia-
tons as a part of their lawful reserves.
On the demand of the holders these treas
silver coin in the discretion of the secre-
tary of the treasury. but ii was declared
as a, part of this redemption provision that
it was 'the established policy Of the
United States to maintain the two metals
on parity with each other upon the present
legal ratio or such ratio as may be pro-
The money coined from such bullion was
to be standard silver dollars and after
less than 2SOOO,0Oo ounces, the law pro-
vided that as much Of the remaining bull
lion should be thereafter coined as might
be necessary to provide for the redemption
of the treasury notes issued on its pur-
chase and that any gain or selgniorage
arising from such coinage shall be ac-
counted for and paid into the treasury.
The SeigniOrage.
This gain or seigniorage evidently indi-
Gates so much of the bullion owned by the
government as should remain, after using
a sufficient amount 10 coin as many stan
dard silver dollars as should equal i'm num-
Der the dollars represented by the treasury
notes issued in payment of the entire guam
tity of bullion. These treasury notes now
outstanding and in circulation amount to
Sl52. 1851 $50, and although there has been
thus far but comparatively small amount
of this bullion coined, yet the so-called
gain or seigniorage as above defined. which
would arise from the coinage of the entire
mass, has been easily aScertaineQ to be a
quantity of bullion sufficient to make, when
coined, IS, 6S1 standard silver dollars.
Considering the present intrinsic relation
between gold and silver the maintenance
of the parity between the two metals as
mentioned in this law can mean nothing
in the estimation and confidence Of the peo-
pie who use our money IN their daily
transactions. Manifestly the maintenance
of this parity can only be accomplished so
far as ii is affected by these treasury
notes and in the estimation of the holders
of the same by giving to such holders on
gold or silver, which they prefer. II fol-
lows that while in terms the law leaves
the choice of coin to be paid on such re-
demption to the discretion Of the secretary
Of the treasury, the exercise Of this dis
erection, If opposed to the demands OF the
holder. is entirely Inconsistent with the
effective and beneficial maintenance of the
parity between the two metals.
III both gold and silver are to serve US
as money and If they together are to sup
ply TO our people a safe and stable cur
rency, the necessity of preserving this par
ity is obvious. Such necessity has been
repeatedly conceded In the platforms
of both political parties and in our federal
statutes. il is nowhere more emphatically
recognized than in the recent law which