Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-04-05
THE SEIGNIORAGE BILL VETOED.


-
The President Points out the Disastrous
Consequence OF the sherman silver
Law, Repealed Last November, from
the Effects of Which the Country is
Only Now slowly EscoverinG--The Ne
cessity for Maintaining Public Conf.
dencc.
WAsHfNGToN, March 29.-The Presi-
dent to-day sent to the House of Rep
resentatifes the following message,
vetoing the Bland Silver Seigniorage
bill:
70 tie House Of Representatives return
without my approval House bill No. 1856.
entitled IAN 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 supported this bill would lead me to
approve Il il could believe that the pub
licgood would not be thereby endangered
and that such action OH my part would be
q proper discharge of official duty, inas-
much, however, as | am unable to satisfy
myself that the proposed legislation is
either wise or opportune. My conception
of the obligations ami responsibilities at
tached to the great office l hold forbids the
indulgence of my personal desire, and in
tAbIADlN GDilllllto illG W lllub GbulSN NlllGAl
is dictated by my reason and Judgment
and pointed out by sincere purpose u
protect and promote the general interest of
our country.
The financial disturbance which swept
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 i'll our
financial ability and u loss OF confidence in
Attr Eanal EIltnEr A tlangn Kphn "a
tempted to assigp causes for our distress it
was very generally conceded that the
operation of u provision of law then i'll
force, which required the government to
purchase monthly u 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. OH 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 financial circles, that our rapid
recuperation could not be reasonably ex-
pectcd. Our recovery has, nevertheless,
steadily progressed, and though less than
live months have elapsed since the repeal
of the mischieyous silver purchase require
ment Il wholesome improvement is I'M
nistGllably apparent. Confidence in our
absolute solvency is to such an extent re-
lnstatcd and faith inf our disposition to
adhere to sound financial methods is so
far restored rs to produce the most encour-
aging results botn ut 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 now under way,
nothing should de done TO check our con-
vaescence; for should we forget that re.
lapse at this time would almost surely re-
duce us to n lower stage of financial dis
tress than that from which we are just
emerging.
| believe that If the bill under considera-
ton should become law it would be re-
garded us u retrogression from the finan-
cial intentions Indicated by our recent re-
peal of the provision forcing silver bullion
purchases, that it would weaken if it did
not destroy returning confidence in our
sound financial tendencies, and that as
consequence our progress TO renewed BUSH
ness health would be unfortunately
checked and return to our recent dis
tressinB plight seriously threatened.
Between the 18th day of August. 1890.
when the law became operative, and the
LIST day of November. 1898, when the clause
it contained directing the purchase of
silver was repealed, there were purchased
by the Secretary OF the Treasury more
than 6S,000,0Uo of ounces of silver bull
lion. In payment for this bullion the
government issued its Treasury notes in
various denominations, amounting to
nearly Sl56, 00OUO0, which notes were i'm
mediately added to the currency in cir
culation 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 to be held by banking
associations as part OF their lawful re-
serves.
On the demand of the holders these
Treasury notes were to be redeemed in gold
or silver coin in the discretion OF the Sec
rotary of the Treasury; but it was declared
as part of this redemption provision that
it 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 us may be provided
by law"
The money coined from such bullion
was to be standard silver dollars, aud after
directing the immediate coinage of II little
less than 2S,000,000 ounces the law pro-
vided that as much OF the remaining bull
lion should be thereafter coined us might
be necessary to provide for the redemption
vi AuC tItuSAh0 llOlSo loDNNh Otl AN9 pun
chase aud that ANY gain or seigniorage
arising from such coinage shall be ac-
counted for and paid into the treasury"
This gain or seigniorage evidently indi-
Gates SO much Of the bullion owned by
the government as should remain after
using sufficient amount to coin US many
standard silver dollars rs should equal in
number the dollars represented by the
treasury notes issued in payment of the
entire quantity of bullion. These treas
ury notes now Outstanding and in
circulation amount to Sl52,95l, 2S0,
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 ascertained to bea quantity
| of bullion sufficient to make when coined
55, l5G, 6Sl standard silver dollars.
Considering the present intrinsic rela-
ton between gold and silver, the mainte-
nance 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 and
confidence Of the people who use on
money in their daily transactions.
Manifestly the maintenace of this
parity can only be accomplished SO faI
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 it is
gold or silver, which they prefer.
The President says he believes the
coming of the bullion seigniorage might
be safely and advantageously done, pro.