Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-03-29
A VETO MESSAGE
President Cleveland Returns the
Bland Seigniorage Bill.
HIS OBJECTIONS TO THE MEASURE
Uncertainty as to the Meaning of
Both Sections.
WHAT SHOULD BE DONE

The President today sent to the Hou,. ~
Representatives the following MESSAGE W.
toing the Bland silver seigniorage bin;
10 the House OF Representatives:
return without my approval House hin
numbered 1906. entitled An act directing
the coinage Of the silver bullion held in ths
treasury and for other purposes"
MY strong desire TO avoid disagreement
win those In both houses OF Congress who
nave supported this bin would lead me 70
approve Ii If could believe that the nuhuo
good would not be thereby endangered ana
that such action on my part would be a
proper discharge Of Official duty. Inasnuch.
however as l am unable to satisfy myself
Iilat the proposed legislation is either wise
or opportune, my conception of the obliga-
'iohs ana responsibilities attached to the
great once hold forbids the indulgence OF
my personal desire and inexorably confines
ME TO that course which is dictated by nv
reason and judgment and pointed out by a
sincere purpose TO protect and promot. the
general interests Of our people
The financial disturbance which sura,,
over the country during the last year was
unparalleled In its severity and disastrous
consequences. There seemed TO be almost
an entire displacement of faith in our flnan-
clal apillty and loss of confidence IN our
nscaI policy. Among those who attempted
10 assign causes for our distress Il was very
generally conceded that the operation of a
provision of law then in force which 70
quired the government to purchase 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
! 1Cf dou %
provision. We had. however, fallen so low
in the depths Of depression and timidity ara
apprehension had so completely gained con-
troll in financial circles that our rapId re-
cuperation could not be reasonably expected.
Our recovery has. nevertheless, steadily pro-
gressed, and, though less than Eve months
have elapsed stree the repeal Of the mis-
chlevous silver-purchase requirement
wholesome Improvement is Enthusiastically
apparent Confidence in our absolute SOL
vency 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 domss-
tic 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 to check our conva-
lescence: nor should We forget that a re-
lapse at this tinre would almost surely re-
duce US to lower stage Of financial distress
than that from which We are just emerging.
Would Weaken Returning Faith.
1 believe that IL the bill under considera-
ton should become a Law, Il would be ~
garded as a retrosression from the nnan-
cial intentions indicated by our recent re
peal OF the provision forcing silver bullion
purchases, that II would weaken II IL did
not destroy returning faith and confidence
In our sound financial tendencies, and that
as consequence our progress TO renewed
business health would be unfortunately
checked and a return TO our recent dis
tressing 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 a glance at such
conditions and a partial review Of the law
referred TO may not be improbable.
Between the l4th day OF August 1890.
when the law became operative. and the LIST
day OF November. 1898. when the clause Il
contained directing the purchase OF silver
was repealed, there were purchased by
the Secretary OF the Treasury more than
one hundred and sixty-eight millions OF
ounces OF silver bullion. In payment for
this bullion the government issued its
treasury notes of various denominations,
amounting to nearly one hundred and ffty-
six millions OF dollars, which notes were
Immediately added TO the currency in cir
culation among our people. Such notes
were by the law made legal tender In pay
ment of all debts. public and private. ex-
cept when otherwise expressly stipulated.
and were made receivable for customs
taxes and all public dues. and when re-
ceived might be reissued. They were also
permitted TO be held by banking associa-
tons as a part of their lawful reserves. On
the demand of the holders these treasury
notes were to be redeemed in gold or sill
Yer coin in the discretion Of the Secretary
Of the Treasury, but II was declared as a
part OF this redemption provision that Il
was the established policy OF the United
States TO maintain the two metals on a
parity with each other upon the present
legal ratio or such ratio as may be pro-
vided by law" The money coined from
such bullion was to be standard silver
dollars and after directing the immediate
coinage OF a little less than twenty-eight
million ounces. the law provided that
mucn of the remaining bullion should be
thereafter coined as might be necessary
TO provide for the redemption OF the treas
ury notes issued on its purchase and that
ANY gain or seigniorage arising from such
coinage shall be accounted for and paid
into the treasury" This gain or seignior-
age evidently indicates much OF the
bullion owned by the government as 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 I'm
payment OF the entire quantity OF bullion.
These treasury notes now outstanding and
in circulation amount TO sl52.95l, 30. and
although there has been thus far but a
comparatively small amount Of this bullion
coined vet the so-caled gain or seigniOr-
age. as above defined, which would arise
from she coinage OF the entire mass. has
been easily ascertained TO be a quantity OF
bullion sufficient TO make when coined
fifty five millions, one hundred and fifty
six thousand. six hundred and eighty-one
standard silver dollars.
The Parity Between the Two Metals.
Considering the present intrinsic relation
between gold and silver the maintenance OF
the parity between the two metals, as men
toned in this law, can mean nothing less
than the maintenance Of such a parity in
the estimation and confidence Of the peo-
pie who use our money in their daily trans