The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-03-30
THE VETO MESSAGE.
President CIeveIand's Reasons for
Not Approving the Bland Bill.


Not Approving the Bland Bill.
WASHINGTON, March 29.-President
Cleveland's message in vetoing the Bland
bill follows:
To the House Of Representative re-
turn, without my approval House bill num-
bered 1886, entitled An act directing 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 If 1 could believe that the pub
lie good would not thereby be endangered,
and that such action on my part would be
a 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 and responsibilities attached
70 the great office 1 hold forbids the In
diligence of my personal desire, and in
exorably confines me to that course which
Is dictated by my reason and judgment, and
pointed out by a 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
unparalleled in its severity and disastrous
consequences. 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 at
tempted 10 assign causes Tor our distress
1t was generally conceded that the opera
ton of a provision of law then in force
which required the government TO pur-
chase monthly large amount of silver
bullion and issue it's note in payment there
for, was either entirely or to a large ex-
tent, responsible, for our condition. This
led TO the repeal, on the first day of No
vember, 1898, OF this statutory provision.
We had, however, fallen so low In the
prehension had SO completely gained con-
troll in financial circles that our rapid re-
e99peratlon could not be reasonably expect
ly progressed, and though less than five
months have elapsed since the repeal of
the mischievous silver purchase require
ment, wholesome improvement is unmis-
takably apparent Confidence in our abb
solute solvency is to such an extent rein
stated, and faith in our disposition to adj
here to sound financial methods is so far
restored as to produce the most encour-
The wheels of domestic industry have been
slowly set in motion, and the tide of for
direction. Our recovery being so well under
way, nothing should be done to check our
convalesence, nor should we forget that
reduce US TO a lower stage Of financial dis
tress than that from which we are just
emerging.
WOULD DESTROY CONFIDENCE.
i believe that If the bill under considera-
ton should become a law it would be re-
garded as retrogression from the financial
intentions indicated by our recent repeal of
the provision forcing silver bullion pur-
chases; that IL would weaken If 1t did not
destroy returning faith and confidence in
our sound financial tendencies and that as
consequence our progress to renewed
business health would be unfortunately
checked and return TO our recent distress
ing plight seriously threa tened. This pro-
posed legislation Is so related to the cur
rency conditions growing out of the law
compelling the purchase OF silver by the
government that a glance at such condi-
ions ana partial review or the law referred
TO may not be unprontable
Between the 14th day of August, 1890,
wnen the law became operative, and the 1st
Jay or November. 1893, when the clause 1t
was repealed, there were purchased by the
Secretary or the Treasury more tnan 1885,
OUOUO0 OF oucnes of silver bullion. In pay
ment Tor TINS bullion the government ISSUED
It's treasury notes OF various denominations,
amounting TO nearly $156.0UO,0O0 winch notes
were ADDED to the currency In circulation
among our people. Such notes were by the
Law made legal tender in payment of ali
debts, public and private, except when
otherwise expressly stipulated, and were
made receivable for customs, taxes ana all
publlc duSS, and when so received might be
relsSued- They were also permitted TO be
neld D. banking associations as a part of
their lawful reserves. On the demand OF
the holders these treasury notes were to be
redeemed IN gold or silver com, In the dis
crstion of the Secretary of the Treasury
but II was declared a part of TINS re-
demption provision That IL was tine es-
taDnshed policy of the United States TO
maintain the two metals parity with
eacn other upon the present legal ratio or
such ratio as may be provided by law.
The money coined from such bullion was
to De standard silver dollars and after di-
recting the immediate coinage of a little
less than twenty-eight million ounces the
law provided that as mucn OF the remain
ing bullion should be thereafter coined as
might be necessary to provide for the re-
demption of the treasury notes issued on
its purchase, and that ANY gain or seign-
forage arising from such coinage shall be
accounted for and paid into the treasury"
This gain or seigniorage evidently indicates
so much of the bullion owned by the gov
eminent as should remain after using
silver dollars as should equal In number
the dollars represented by the treasury
notes issued in payment of the entire guam
tity or bullion. These treasury notes now
on standing and in circulation amount to
$l52,s5l go, and although there has been
OF this bullion coined yet, the so-called
gain or seigniorage above defined which
would arise from the coinage of the entire
mass, has been easily ascertained to be a
quantity of bullion sufficient to make, when
coined. 55.156.6sl standard silver dollars
MAINTENANCE OF PARITY
Considering the present intrinsic relation
between gold and silver. the maintenance
of the parity between the two metals, as
mentioned in this law, can mean nothing
less than the maintenance of such a parity
in the estimation and confidence of the peo-
pie who use our money in their daily trans
actions. Manifestly the maintenance of this
parity only be accomplished so far as IL
is affected by these treasury notes and in
the estimation Of the holders of the same
ty giving to such holders, on their redemp-
ton, the coin, whether liz is gold or silver,
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 exer-
else Of this discretion, If opposed to the de-
mands of the holder is entirely inconsist-
ent with the effective and beneficial mainte-
nance OF the parity between the two metals.
II both gold and silver are to serve us as
money, and If they together are TO supply
TO our people a safe and stable currency,
the necessity of preserving this parity is
obvious. Such necessity has been repeat
edly conceded in the platforms of both po-
litical parties and I'm our federal statutes
1t is nowhere more emphatically 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 i'm 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 reasons, not only complied
with every demand for the redemption of
these treasury notes in gold. but the pres
ent situation. as we'll as the letter and
spirit OF the law, appear plainly to Justify.
If they do not enjOin upon him, q continual
ton OF such redemption. The conditions
have endeavored 10 present may be thus
summarized:
First-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 issued for the purchase OF