The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1894-04-06
VETOED.
The Presidents Objections to the
Seigniorage Bill.
He Returns the Measure to Congress with
out His Approval-Defects Pointed
INSTRUMENTATION as to
the Gold Reserve.

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 il IL
could believe that the public good would not De
thereby endangered and that such action on nv
part would be a proper discharge OF official
duty. Inasmuch. however. as l 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 inexoraby 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 its 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 Grafton of provision Of law then In
force which required the government to pur-
chase monthly a large amount OF silver bullion
and issue its notes in payment therefor. was
either entirely, or to large extent response
bic for our condition This led TO the repeal
on the first day of November. 1923 of this stat
utory provision We had, however. fallen so
| low in the depths of depression and timiditv
and apprehension had completely gained
control in financial cipcles that our rapid recu-
peration could not reasonably be expected
Our recovery has. nevertheless. steadily pro
| crossed and though less than i've months have
| elapsed since the repeal OF the mschievous sill
| yer purchase requirement wholesome i'm
| provement Is unmistakablv apparent Con
| hdence 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 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 wav, nothing should be
| done to check our convalescence nor should
we forget that a relapse at this time would al
most surely reduce US to lower stage OF
| financial distress than that from which we are
/ believe that IL the bill under considera ton
| should become law IL would be regarded as
retrogression from the financial intentions in
! dulged by our recent repeal OF the provision
| forcing silver bullion purchases that II would
weaken il ii 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
| eminent that a glance at such conditions and
| q partial review OF the law referred to, may
| not be imp ofitable Between the l4th OF Au-
| gust, 1897 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 sec
| rotary of the treasury more than los, O0OOO0
Of ounces Of silver bullion In pavment for
this bullion the gov rnment issues its treasury
| notes of various denominations, amounting
| to nearly sl56OO0, 900, which notes were
! Immediately added to the currency in lrcula
| ton among our people Such notes were by
| the law made legal tender in payment OF all
| debts, public and private. except when other
| wise expressly stipulated and were made re-
ceivable for customs, taxes and public dues,
| and when so received sy be reissued They
| were also permitted 10 be held by banking as
! sociations as a part OF their lawful reserves On
| the demand of the holders these treas ury notes
| were to be redeemsble in gold or silver coin in
| the discretion OF the secretary OF the treasury;
| but IL was declared as part OF this redemption
provision that 1t was 1.-The established policy OF
the United States 70 maintain the two metals
on parity with each other upon the present
lie al 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 a little less than
% OOO 100 ounces the law provided that as much
! coined as might be necessary 10 provide for the
| redemption Of the treasury notes issued on its
! purchase and that any gain or seigniorage arfs-
, 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 sl52, 9ji, go, and. although there has
! been thus far but q 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 10 be a quantity Of
bullion sufficient to make when coined 50 1856 6sl
, standard silver dollars
| Considering the present intrinsic relation be-
! tween gold and silver the maintenance of the
Z parity between the two metals. as mentioned
in this law, can mean nothing hess than the
| maintenance OF such parity in the estimation
| and confidence OF the people who use our money
! in 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 it Is gold or sill
yer which they prefer 1t 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 II 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
II both gold and silver are to serve US as
money and IL they together are TO supply our
people 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 II 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 -tals and equal
mower of every dollar at al times IN the market
and the payment of debts" The secretary OF
the treasury has therefor for The best reasons
not only complied with every demani 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, II
they do not enioin upon him, continuation oil
such redemption
| The conditions have endeavored to present
may be thus summarized:
| First-The government has purchased and
now has on hand sufficient silver bullion 10
hermit the coinage OF all the silver dollars
necessary to redeem, in such dollars the sreas-
ury notes issued for the purchase OF sale silver
bullion and enough besides 10 coin as gain or
seigniorage. S5,I5s,6s additional standard
silver dollars
Second-There are outstanding and now IN
| circulation treasury poies issued in payment oil
| the bullion purchased amounting 10 slo2,s I'D
These notes are legal tender in payment OF al
debts. public and private, except when other
wise expressly stipulated, theT are receivable
| for customs taxes and all public dues, when
held by banking associations they may ot
| c-,r,ad "a mart of their lawful reserves and
| they are redeemed by the government in gold
at the option OF the holders These advantage
| ous attributes were deliberately attached &c
| these notes at the time OF their issue, they are