The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-04-05
SEIGNIORAGE VETOED.
SUCCESS OF PARTY MUST YIELD
TO PRINCIPLE.
President Cleveland Can Not See the
Wisdom of the Bill and Returns 1t
to Congress, With Plain Reasons
for His Disapproval.

return without my approval house
! bill No. 1896. entitled, "An act direct.
9 ing the coinage of the silver bullion
held in the treasury and for other pur.
poses"
My strong desire to avoid Disagree
ment with those in both houses Of
congress who have supported this bill,
would lead me to support it if could
believe that the public good would
not be thereby endangered, and that
such action on my part would
be proper discharge OF official
duty. lnasmuch, however, as l an
posed Legislation Is either wise or OPP
perfume, my conception of the obliga-
tions and responsibilities attached to
tho great office hold forbids the in
diligence of my personal desire and
ineXOrably confines me to that course
which is dictated by MY reason and
and pointed out by a sincere
purpoLe to promote and protect the
general interests of our people.
! The financial disturbance which
over the country during the
past year was unparalleled in its sc.
verify and disastrous consequences.
There seemed to be almost an entire
displacement of faith in our financial
ability and loss of confidence in our
financial policy. Among those who
attempted to assign causes for our dis
tress 1t was generally conceded that
the operation of provision of law then
in force, which required the govern
ment to purchase monthly q large
amount OF silver bullion and issue its
notes in payment therefor, was either
entirely or to large extent RESPONSE
BILE for our condition. This led to the
repeal on the first day of November,
1898, of this statutory provision.
We had, however, fallen so low in
the
DEPTHS OF DEPRESSION
and timidity, and apprehension, had
so completely gained control in finan-
cial circles that our rapid recuperation
could not be reasonably expected.
\ Our recovery has been slow, but we
have steadily progressed, and though
less than five months have elapsed
since the report of the mischieyous
silver pure lase requirement., whole.
sale improvement Is unmistakably ap.
parent. Confidence in our absolute
solvency is to such All extent rein.
stated 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 id
=, dustry have been slowly set in mo lion
y and the tide of foreign investment has
again startod in our dir5UtlUu. Our
recovery being go well under way,
nothing should be done to check our
convalescence, nor should we forget
that relapse at this time would al.
most surely reduce us to o lower stage
of financial distress than that from
which we are just emerging.
1 believe that if the bill under con.
sideration should become q law it
from the financial intentions indicat-
: ed by our recent actions, that it would
.nHweaken, if it did not destroy return
ting faith and confidence in our sound
& financial tendencies, and more as q
consequence to our renewed business
health would be unfortunately check
ed and a return to our recent distress
ing plight seriously threatened. This
proposed legislation il 30 related to
the currency conditions growing out
of compelling the purchase of silver
by the government that glance at
such conditions and partial review OF
the law referred to may not be un-
profitable.
REVIEW OF THE LAW.
Between the 14th of August, 1890,
o,, tho 10 Wy hooanne
the 1st day of November, 1898, when
the clause it contain ed directing the
purchase of silver was repealed, there
were purchased by the secretary of
the treasury more than 10000 of
ounces of silver bullion. In payment
for this bullion the government issued
it's treasury notes OF various denomi
nations amounting to Learly $780,
S0Q,000 which notes were added to
~ currency in circulation among
l}lr people. Such notes were by the
Flaw made legal tender in payment Of
all debts, pubic and private, except
when otherwise expressly stipulated,
and were receivable for customs, tax.
es and all the public dues, and
when 80 received might be
reigsued. They were also permitted
to be held by banking associations as
a part of their lawful reserves, On
the demand OF the holders these treas
ury notes were to be redeemed in gold
or silver coin ia the discretion of the
secretary of the treasury, but it was
declared as part of this redemption
provision that it was the 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 provided by law. The
mouey coined from such bullion was
TO be standard silver dollars, and after
directing the immediate coinage of
little less then 100000 ounces the
law provided that such of the remain
Dig bullion should be hereafter
coined as might be necessary to pro-
vide for theredemption of the treasury
notes issued on its purchase and that
any gain or seigniorage arising from
such coinage should be accounted for
and be paid into the treasury.
A GAIN OR sEIGNIORAGE
evidently indicated so much of the
bullion owned by the government as
should remain after using a sufficient