The Coconino weekly sun., 1894-04-05
BLAND BILL VETOED.
The President Refuses to Approve
 the Measure.
He Believes the Construction to Re Faulty Low Rate Bonds to Maintain the Gold Supply Urgently
 Advocated.


 To the House Of Representatives: I return without my approval house bill numbered 4596 entitled An act directing the coinage of the silver bullion held in the treasury and for other purposes
 My 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 l 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 am unable to satisfy myself that the proposed legislation Is either wise or opportune my conception of the obligations and responsibilities attached to the great office hold forbids the indulgence of my personal desire, and inexorably confines me to that course which is dictated by my reason and judgment and pointed out by sincere pur- pose to protect and promote the general inter. 'ests Of our peop.e
 The financial disturbance which swept over the country during the last year was unparal- leled in it's 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 it was very generally conceded that the eration of a provision of law then in force which required the government to pur- chase monthly large amount of silver bullion and issue it's notes in payment therefor, was either entirely, or to large extent responsi- ble for our condition This led to the repeal on the first day of November 1893 of this stat utory provision We had, however fallen so low in the depths of depression and timiditv and apprehension had so completely gained control in financial circles that our rapid recu- peration could not reasonably be expected
 Our recovery has nevertheless, steadily pro- gres6ed, and though less than i've months have elapsed since the repeal Of the mischievous sill yes purchase requirement. wholesome i'm provtment is unmistakably apparent Con fidence in our absolute so!vency 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 so well under way, nothing should be done 10 check our cOnyalescence, nor should we forget that a relapse at this time would al most surely reduce us to a lower stage of financial distress than that from which we are just emerging.
 believe that if the bill under considsrat ton should become a law it would be regarded as retrogression from the financial intentions in dulged by our recent repeal of the provision forcing silver bullion purchases that it 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 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 gov ernment that glance at such conditions and a partial review of the law referred to, may not be unp ohtable Between the l4th of Au. gust ls9L when the law became operative, and the lst day of November, 1893 when the clause it contained directing the purchase of silver was repealed there were purchased by the sec retary of the treasury more than l680O0OO0 of ounces of silver bullion In payment for this bullion the gov rnment issues its treasury notes of various denominations, amounting to nearly Sl56,OOO0OO which notes were immediately added to the currency in CIT cua tion among our people. Such notes were by the law made legal tender in payment of all aebts, 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 were also permitted to be held by banking as- Bociations as 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 discretio Of the secretary Of the treasury; built was declared as a part of this redemption provision that 1t was "the established policy of
 
 on parity with each other upon the present le2al 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 little less than 2S, S,0OOC C0) 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 aris- ing from such coinage shall be accounted for and paid into the treasury.
 This gain or seigniorage evidently indicates so much Of the bullion own d by the govern ment as should remain after using sufficient amount to coin as many standard silver dollars as should equal in number the dollars repre- scented by the treasury notes issued in payment of the entire quantity of bullion. These treas ury notes now outstanding and in circulation amount to $l52, 2W, and, although there has been thus far but compara lively 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 ascertained to be a quantity of bullion sufficient to make when coined 55, l56 68l standard silver dollars
 Considering the present intrinsic relation be- tween Nold and silver the maintenance of the parity between the two metals, as mentioned in this law, can mean nothing less than the maintenance of such parity in the estimation ana commence or tue peOple WnO use our money fin 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 sil- 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.
 If both gold and silver are to serve us as money and if they together are 10 supply our people a safe and stable currency, the necessity of preserving this parity is obvious Such ne- cessity 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 stals and equal power of every dollar at all times in the market and the pay yment of debts" The secretary of the treasury has therefor for the best reasons not only compiled with every demant 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 trey do not enioin upon him, continuation of