The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1894-04-06
NOT APPROVED.
The Pr .sident Vetoes the Bland
Se:gniorage Bill
fIe Relieves No More silver Shouid be In
fused Into the Currency-His Rec.
OnmendxtiOn ~ tn the Gold
Reserve.


To the House of Representatives: l return
without nv approval house bill numbered
1896 entitled An act directing the coinage OF
the silver bullion held in tn treasur ana 1or
other purposes
NY strong desire to avoii disagreement with
those in both h use, OF congress who have sup
ported this bill would lead me to approve 1t II l
could be .ieve tha, the public good would not be
thereby ENDANGERED and that such action on nv
part would be a proper discharge OF omclal
duty Inasmuch however. as l am unable to
satisfy M self that the proposed legislation is
either wise or opportuue my conception OF the
obligations and responsibilities attached 10 Inc
great Office hold forbids the indulgence OF nv
personal desire. and inexorably confines me 10
that course which is dictated by my reason
and judgment and pointed out by a sincere pur-
pose to protect and promote the general inter-
ests of our pope
The financial disturbance which swept over
the country during the last wear was unparal-
leled in its severity and disastrous eonse-
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 il was very generally conceued
that the o GRAFTON OF a provision Of law then In
force which required the government to pur-
chase monthly large amount OF silver bullion
and issue its notes in payment therefor. was
either entirely, or to a large extent RESPONSE
BILE for our condiii IN This led to the rep al,
On the first day of November, 1898 OF this stat
utory provision We had, however. fallen so
low in the depths Of depression and tiniditv
and apprehension had so completely gained
control in financial circles that our rap recu-
peratiOn could not reasonably be expected
Our recovery has. nevertheless steadily pro-
crossed, and trough less than five months have
elapsed since the repeal OF the mischlevous Sill
yer purchase requirement. wholesome I'M
provement is unmistakabl' apparent Con
tidence in our absolute SOvency Is to such an
extent reinstated and faith in our DISPOSE don
to adhere to sound financial methods is SO lar
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 mas
again started in our direction our recovery
being so well under wa. nothing should be
done TO check our conva!e Scence. nor snoulu
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
Just emerging
believe that il the bill under considera ton
should become a law it would be regarded rs a
retrcgression from the financial intentions in
dulged by our recent repeal OF the provision
forcing silver bullion purchases that it would
weaken if it did not destroy returning faith and
confidence in our sound financial tendencies
and that as a consequence our progress to re-
aewed business health would be unfortunately
checked and q 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
ernment that a glance at such conditions and
4 partial review Of the law referred to, may
not be imp ofitable Between the 18th OF Au-
A. L., hxr, xtt-a md
the LIST day of November. 1893. when the clause
1t contained directing the purchase of silver
was repealed there were purchased BIZ the Sec
rotary of the treasury more than l6S.0OO,oUO
NJ ounces Of silver bullion. In payment for
this bullion the gov rEment issues its treasury
notes of various denominations, amounting
to nearly SI56.OOO,O0J. which notes were
Immediately added to the currency in clrcula
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 we're made re.
ceivable for customs, taxes and pubic dues,
and when so received ay be reiSSued They
we're also permitted to be held by banking as
sociations part Of their lawful reserves On
the demand Of The holders these treasury notes
we're to be rcdeemable in gold or silver coin in
the discretion of the secretary OF the treasury:
but il was declared as a part of this redemption
provision that it was 1.-The established policy OF
the United States TO 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 4 little less than
% OoO., o. ounces the law provided that as much
of the remaining bullion should be therea ter
coined as might be necessary to provide for the
redemption of the treasury notes iSSuet on its
purchase and that anv gain or seicniorage arts
ing from such coinage shall be accounted fol
and paid into the treasury.
This gain or Seign orage evidently indicates
so much of the bullion own b. the govern
ment as should remain after using a suficien,
amount to coin as manv standard silver dollars
as should equal in number the dollars repre-
sented by the treasury notes issued in payment
of the entire quantity Of bullion. These treas
ury notes now outstanding and in circulation
amount to Si529, ,2,l, and. although there has
| been thus far but a comparatively small amount
of this bullion coined. We. the o-called gain Of
| seigniorage. as above defined, which would
| arise from the coinage OF the entire mass. ha:
been easily ascertained to be a quantity Of
bullion sufficient to m Ike when coined IS, 1856 Isl
standard silver dollars
Con ,idering the present intrinsic relation be
tween gold and silver the maintenance Of the
| paritc between the two metals, as mentioned
| in this law, can mean nothing less than the
maintenance of such parity in thu estima tior
and confidence OF the people who use our money
| in their daily transactions ManifeStly tint
maintenance Of thi, paritc can only be accom-
plished so far it is affected by these treasury
| notes. and in the estimation OF the holders o
| the same, b. giving TO such holders, on theil
redemption, the coin whether il is gold or sill
yer which they prefer 1t follows that while i,
| terms the law leaves the choice of coin 10 b,
paid on such redemption TO the discretion o
the secretary of the treasury, the exercise o
this discretion il opposed to the dem inds of tn,
holder, is entirely inconsistent with the effect
| i've and beneficial maintenance OF the part,
between the two metals
II both gold ard silver are 10 serve US a
money and il they together are 20 suppl. gu
people a safe and stable currencr, the nesessi,.
of preserving this parity is obvious
! The conditions have ende lvocei TO presen
may be thus summarized:
| First The government has purchased ant
| now has on hand sufficient silver bullion 4
| permit the coinage Of all the i yer dollar
necessar: TO redeem, in such dollars. the treas
+! ury notes issued fo- III. purchase OF said silye
| bullion and cnou2h besides to coin. gain o!
| seigniorage. s5,loe,6el additional standar
| silver dollars
| Second-There are outstanding and now i
| circulation treasury notes issued in payment O
the bullion purchased amounting to SIS, 95l, 81
These notes are legal tende. in payment of a.
debts, public and private, except when Other