The Providence news. (Providence [R.I.]) 1891-1906, 1894-03-29
The Message.
seigni0rage

WASHINGTON, March, 29.-Ths Presl-
dent today sent TO the House of Represen-
tatives the following message vetoing the
Bland silver seigniorage bill:
wo the House of Representatives.;
return without my approval House
bill numbered 1886, entitled, An act
directing the coinage OF the silver bullion
held in the erreasury and for other pur-
poses"
NV strong desire to avoid disagreement
with those in both houses OF Congress who
have supported this bill, would lead me
to approve il if j could believe that the
public good would not be there
by endangered and that such
action on my part would be
proper discharge OF my official duty.
Inssmuch, however, as ! am unable to sat
sly myself that the proposed legislation
is either wise or opportune, my concep-
tion OF the obligations and respon-
sibiities attached to the great
Office hold forbids the
indulgence OF my personal desire, and in
exorsbly confines me TO that course which
is dictated by my reason and judgment and
pointed out by sincere purpose 20 pro-
tect 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 consequences. There seemed
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 operation OF provision OF law
then in force which required the govern
ment TO purchase monthly large amount
of silver bullion and issue its notes in pay
ment therefor, was either entirely, or to
large extent, responsible for our
condition. This led 20 the repeal on the
first day OF November, 1888, OF this statu-
tory provision.
depth of depression, and timidity and APP
prehension had so completely gained
control ia financial circles, that our rapid
recuperation could no be reasonably ex-
pe<t1d.
Oar recovery has, nevertheless, steadily
progressed, and though less than five
months have elapsed since the repeal
of the miachievous silver purchase re-
quirement, a wholesome improvement Is
unmistakaoly apparent.
Confidence 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
produce the most encouraging 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 our direction.
",
nothing should be done to check our con-
valsscence, nor should we forget that a
relapse at this time would almost surely
reduce US TO a lower stage OF financial
distress than that from which we are just
emerging.
believe that If the bill under consider
atioh should become law, 1T would be
regarded as a retrogression from the
financial intentions indicated by our re-
cent repeal. of the provisions forcing sill
YER bullion purchases, that IL would weaken
il IL did not destroy returning faith and
confidence in our sound financial tenden-
cies, and that as consequence our
progress to renewed business health would
be unfortunately checked and a return to
our recent distressing plight seriously
threatened.
This proposed legislation is so related to
the currency conditions growing out OF
the law compelling the purchase OF
silver by the Government, that glance
at such conditions ana partial review of
the law referred TO, may not be unprofita-
Bile.
The President then reviews history OF
silver legislation from August 1890 when
the law became operative, to the repeal OF
November, 1888. This is an introduction
TO a definition of the seigniorage into
which he goes quite elaborately.
s'If both gold and siiver,N he continues,
ssare to serve us as money and il they
together are TO supply to our people
safe and suitable currency the neces-
city of preserving parity is
obvious. Such necessity is no.
where more emphatically 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 value OF the coins OF the
two metals and the equal power of every
dollar at all times in the markets and in
the payment of debts"
TheSecrctary Of the Treasury has, there
fore. for the best OF reasons, not only
complied with every demand for the
redemption OF these treasury notes
in gold, but the present sit
uation, as well as the tenor
and spirit OF the law appear
plainly TO justify, II they do not enioin
upon him, acontinuation of such redemp-
tion.
tions OF the bill, mentioning il section by
section, and then states his objections to
IL as follows:
The entire bill is most unfortunately
CONSTRUCTED. Nearly every sem
ttenee present uncertainty and
1ts meaning and intent. The first section
Is especially faulty in this respect and ii is
extremely doubtful whether It's language
will permit the consummation of its sup
posed purposes.
Isuppose this section was also intended,
IN case the needs OF the treasury called
for money faster than seigniorage
bullion conld actually be coined.
10 permit the issue OF silver GER
tihcates in advance OF such COIN
sge; but it's language would
scem 10 permit the issuance of such ccrti-
ficatcs 20 double the amount of seignior-
age as stated, one half of which would
not represent an ounce OF silver i'm the
Treasury.
The present pcrplexitics and embarrass-
ments OF the Secretary OF the Treasury
ought not 20 be augmented by devolving
upsn him the execution OF law so un-
certain and confused. I am not will
ing, however, TO rest my obliga-
tisn TO this section solely on these
grerrds; in my judgment sound
1nsrce docs not commend a
further infusion OF silver into our
currcncy at this time unaccompanied
BY further adequate provision for the
meintenance In our treasury OF a safe
gold reserve.
The President also points out confusing