The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-04-06
VETOED.
The Presidents Objections to the
Seigniorage Bill.
He Returns the Measure to Congress With.
cut His Approval-peeects Pointed
Out-Recommendatio as to
the Gold Reserve.

| without nv approval house bill numbered
1896 entitled AN act directing the coinage OF
/ the silver bullion held in the treaSuf; and Sor
other purposes"
Ny strong desire to avoid disagreement with
| those in both b buses OF congress who have sup
ported this bill would lead me to approve it il 1
could believe that the public good would not be
thereby endangered and that such action on nav
part would be proper discharge OF official
duty. 1nasmuch. however. as I am unable to
satisfy myself that the proposed legislation IS
either wise or oppor tune my conception OF the
Obligations and responsibilities attached to the
great Office hold forbids the indulgence Of my
personal desire, and inexorably confines me 10
that course which is dictated by my reason
and judgment and pointed cut by a sincere pur-
pose to protect and promote the general inter
ests Of our peope
The financial disturbance which swept over
the country during the last year was unparal-
ieied IN its Severity and disastrous conse-
Quences, There seemed to be almost an entire
displacement OF faith in our financial ability
and a loss Of confidence In our fiscal policy.
among those who attempted to assign causes
eor oat aistress it was very generally conceded
tsat the o. Grafton Of provision of law then in
Iorce Wnlch req tired the government to pur.
chase monthly large amount OF silver bullion
and issue its notes in payment therefor, was
either entirely, or to large extent, response
bic for our conditf N This led to the REPEAL
on the frs, day OF November 1853 Of this sta.-
II,
low in the depths OF depression and timidity
and apprehension had so completely gained
control in financial circles that our rapid recu-
peration could not reasonably be expected
| Our recovery has. nevertheless, steadily pro-
gressed and trough less than five months have
elapsed since the repeal of the mischievous sill
yer purchase requirement a wholesome i'm
provement is Enthusiastically apparent Con,
| fdence in our absolute so,vency is to such an
extent reins tated and faith in our DISPOSE ion
! til
restored as 20 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 80 we'll under waF, nothing should be
! done to check our convalescence. nor should
| we forget that a relapse at this time would al
| most surely reduce to a lower stage of
| financial distress than that from which we are
just emerging
| should become law 1t would be regarded a
retrogression from the financial intentions in
| duSed by our recent repeal OF the provision
| forcing silver bullion purchases that it would
| weaken IL it did not destroy returning faith and
| confidence in our sound financial tendencies
| and that as 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
| CuETcuCy STOWluB OuI VI tuc law
| compelling the purchase Of silver by the gov
eminent. that a glance at such conditions and
| a partial review Of the law referred to, may
not be imp ofitable Between the l4th of Au
gust, 189l, when the law became operative, and
| the LIST day OF November 1893 when the clause
| 1t contained directing the purchase of silver
was repealed there were purchased BY the Sec
rotary Of the treasury more than los, O0O,0
| Of ounces Of silver bullion In pa ment for
! this bullion the gov rnment issues its treasury
| notes OF various denominations, amounting
| to nearly Slo6, zoo, 000, 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 ay be ressued They
were also permitted to be held by banking as
| seciations a part OF their lawful reserves On
the demand OF he holders these treas ury no ties
were to be redeemable in gold or silver coin in
the discretion Of the secretary OF the treasury;
but it was declared as a part of this red emption
provision that it was 1.-The established policy OF
the United States to maintlin the two metals
on a parity with each other upon the present
le 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
IS OJO. Cd 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 issued on Its
purchase and that any gain or Seigniorage arts
ing from such coinage shall be accounted for
and paid into the treasury.
This gain seign iorage evidently tndica ties
so much of the bullion own b. the govern
ment as should remain after using sufficient
amount to coin many standard silver dollars
Us should equal in number the dollars repre-
scented by the treasury notes issued in paymen,
of the entire quantity of bullion These treas.
ury notes now outstanding and in circulation
amount to S52, 9Sl ,23), and. although there has
been thus far but a comparatively small amount
of this bullion coined. We. the so-called gain or
seigniorage as above defined, which would
arise from the coinage of the entire mass has
been easily ascertaned to be a quantity OF
bullion sufficient to make when coined %, 1o6 ISL
standard silver dollars
Considering the present intrinsic relation be-
tween gold and silver the maintenance Of the
paritv 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 our money
| in their daily transactions ManifeStly the
maintenance Of this parity can only be accom-
plished far 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 discre ton OF
| the secretary Of the treasury, the exercise Of
this discretion If 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 If they together are to supply ouI
| people a safe and stable currency, the necessity
| Of preserving this parity is obvious Such ne
| cessi:v has been repeatedly conceded in the
platforms of both political parties and in our
| federal statutes It 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 o.
the common use Of the two m tails and eQua
| power Of every dollar at all times in the marke
| and the pa ment of debts" The secretary o.
| the treasury has therefor for the best reasons
not only complied with every demani for the
! redemption of these treasury notes in gold, ou
| the present situation well as the letter ant
| tfey do not enjoin upon him. continuation o
| such redemption
The conditions have endeavoreo 10 presen
may be thus summarized:
| First-The government has purchased anS
now has on hand sufficient silver bullion Il
| permit the coinage OF all the silver dollar
| necessary to redeem, in such collars, the treas
| ury notes issued for the purchase OF said slve
bullion and enough besides TO coin. as gain Oh
| seigniorage, s5,l5e, 6Sl additional stanoar'
| silver dollars
| circulation treasury notes issued in payment
| the bullion purchased amounting to sl5s, l,2sl
| These notes are legal tender in payment OF a.
debts. pubic and private, except when otnei
| wise expressly stipulated, thev are recelvaol
| for customs taxes and all public dues, whe