Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1894-04-04
, SILVER BILL VETO.
Cleveland Disapproves the
Bland Coinage Measure.

WASHINGTON, ID. o., March 29.-Ihe
President to-day vetoed the Bland bill
for the coinage of the silver seigniorage.
To THE HOUSE OF REPRESENTATIVES,: return
without my approval House bill numbered 1896
entitled can act directing the coinage of the sill
yer bullion held III the Treasury and for other
purposes" Ny strong desire to avoid dis
agreement with those in both houses
of Congress who have supported this bill
would lead me to approve it, If l could believe
that the public good would not be thereby
dangered, and that such action on my part would
be proper discharge of official duty. mas
much. however, as am unable to satisfy myself
that the proposed legislation is otherwise or OPP
perfume. my conception of the obligations and
responsibilities attached to the great office I
hold forbids the indulgence of my personal de-
sire and lnexorably confines me 70 that course
which Is dictated by my reason and Judgment
and pointed out by sincere purpose to protect
and promote the general interests of our people.
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
vision of law then in force which
required the government to purchase
monthly large amount of silver bullion and
issue its notes in payment therefor, was, either
entirely or to large extent responsible for our
condition. This led to the repeal on the 1st
day OF November, 1893, of this statutory pro-
vision. we naQ, however, 1all6n so low IN the
depths Of depression and ,timidity, and apPre-
hension hS,d SO completely gained control in
financial circles, that our rapid recuperation
could not be reasonably c55T ccted. Our recovery
has, nevertheless, steadily progressed, and
though less than five months have elapsed since
the repeal of the mischieYous silver purchase
requirement. a wholesome improTe ,nGfit IS uil-
mistakably apparent Confidence in our abs
lutte solvency is to such an extent reinstated.
2nd faith in our disposition to adhere to sound
financial methods is so far restored, as to pro-
duce the most encouraging results 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, moth
ing should be done to check our Convalescence,
nor should we forget that q relapse at this time
would almost surely reduce us to a lower stage
of financial distress than that from which we
are just emerging. l believe that if the bill
under consideration should become law it
would be regarded as retrogression from the
financial intentions divulged by our recent
repeal of the provision enforcing silver bullion
purchases that it would weaken if it did not de-
stroy returning faith and confidence in our
sound financial tendencies, and that & conse-
quence our progress to renewed business health
would be unfortunately checked and return
to our recent distressing plight seriously threat
ened.
This proposed legislation is so related to the
currency conditions growing out of the law COM
polling the purchase of silver by the government
that glance at such conditions and partial re-
view of the law referred TO may not be unprOfita-
BILE 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 l6S,0000U
ounces of silver bullion. In payment for this
bullion the government issues its treasury notes
of various denominations, amounting to nearly
Sl5600O,OO0, which notes were Immediately
added to the currency in circulation among our
people. Such notes were by law made legal
tender in payment of all debts, public and
private, except when otherwise expressly
-tjN 1ntn do 10
toms, taxes, and all public dues, and when
so received might be re-iSSued. They were also
permitted to be held by banking associations
part of their lawful reserves. On the demand
of the holders these treasury notes were to be
redeemed in gold or silver coin in the discretion
of the secretary of the treasury; but it was de-
clared part Of this redemption provision
that it was 1.-The established policy of the United
States TO maintain the two metals parity
with each other upon the present legal
ratio or such ratio as may be provided by law"
The money coined from such bullion was 20 be
standard silver dollars, and after directing the
immediate coinage of little less than Is. 900 900
ounces. the law provided that as much of the
remaining bullion should be thereafter coined
as might be necessary to provide for the
dempuon otthe treasury notes issued on its pur-
chase, and that ''any gain or seigniorage arts
ing from such coinage shall be accounted for
and paid into the treasury"
This gain SeigniOrage evidently indicates so
much of the bullion owned by the government
as should remain after using sufficient amount
to coin many standard silver dollars as 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 1852 951 $50 and although
there has been thus far but Il comparatively
small amount Of this bullion coined, yet the So
called gain or se1gnlorage, as above defined,
which would arise from the coinage of the en-
tire mass, has been easily ascertained to be
quantity of bullion sufficient to make when
coined 55,l566S1 standard silver dollars.
Considering the present intrinsic relation be-
tween gold and silver the maintenance Of the
parity between the two metals as mentioned in
this law can mean nothing less than the main
tenance OF such parity in the estimation and
confidence OF the people who use our money in
their daily transactions. ManifeStly the main
tenance of this parity can only be accomplished
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 re-
demption of the coin whether it is gold 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, if opposed to the demand of the
holder, is entirely inconsistent with the effective
and beneficial maintenance of the parity be-
tween the two metals.
If both gold and silver are to serve us as mon
ey, and if they together to supply to our
people a safe and stable currency, the necessity
OF preserving this parity is obvious Such ne
cesslty has been repeatedly conceded in the
platforms Of both political parties and in
federal statutes. 1t is nowhere more emphati-
cally recognized than Ill the recent law which
repealed the provision under which the bullion
upon the maintenance of the parity in
value of the coins of the two metals and the
equal power of every dollar at all times in the
markets and in the payment of debts" The
secretary Of the treasury has, therefore, for the
best Of reasons, not only complied with every
demand for the redemption Of these treasury
notes in gold, but the present situation, as well
the letter and spirit Of the law, appears plain
ly to Justify, if they do not enjoin upon him.
a continuation Of such redemption.
The conditions have endeayored to present
may be thus summarized:
l. The government has purchased and now
has on hand sufficient silver bullion to permit
the coinage of all the silver dollars necessary to
redeem in such dollars, the treasury notes is
sued for the purchase of said silver bullion, and
enough besides to coin, gain or seignorage.
$50 156 ,6S1 additional standard silver dollars.
2. There are outstanding and now in cirCula-
ton treasury notes issued in payment of the
bullion purchased amounting to S152, 951 $50.
These notes legal tender in payment of all
debts. pubic and private, except when other
wise expressly stipulated; they are receivable for
customs taxes, and all public dues; when held
by banking associations they may be counted as
part of their lawful reserves, and they are
redeemed by the government in gold at the
option of the holders. These advantageous at
tributes were deliberately ched to these otes
at the time of their issue; they ful1V under