Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-03-29
A VETO M ESSAGE
Continued from First Page.)

discretion of the Secretary of the Treasury,
the exercise of this discretion, If opposed to
the demands of the holder, is entirely in
consistent with the effective and beneficial
maintenance of the parity between the two
metals.
| If both gold and silver are to serve as
money and if they together are to supply
| to our people safe and stable currency
| the necessity of preserving this parity is
| obvious. Such necessity has been repeat
eddy conceded in the platforms of both
political parties and in our federal statutes.
1t is nowhere more emphatically recog-
nIzed than in the recent law which repealed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
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 there
| fore for the best of reasons, not only
/ promptly complied with every demand for
| the redemption of these treasury notes in
| gold, but the present situation, well
| the letter and spirit of the law, appear
plainly to justify, if they do not enjoin upon
him, continuation of such redemption.
The conditions 1 have endeavored to pre-
sent 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
| said silver bullion and enough besides to
| coin, gain or seigniorage fifty-fve mil
! lion one hundred and fifty-sx thousand
six hundred and eighty-one additional
standard silver dollars.
Second. There are outstanding and now in
| circulation Treasury notes issued in pay
ment of the bullion purchased amounting to
s152, 951 $50. These notes are legal tender in
payment Of all debts, public and private
| except when otherwise expressly stipulated,
| they are receivable for customs taxes
| and all public dues, when held by banking
! associations they may be counted as part
| or their lawful reserves, and they are re-
| deemed by the Government in gold, at the
option OF the holders. These advantageous
attributes were deliberately attached to
| these notes at the time of their ISSUE they
are fully understood by our people 10 whom
such notes have been distributed as cur
| rency, and have inspired confidence in their
| safety and value. and have undoubtedly
thus induced their continued and contented
use as money. instead OF anxiety for their
redemption.
| Statement of His Objections.
Having referred to some incidents which
1 deem relevant to the subject it remains
for me to submit specific statement Of my
/ objections to the bill now under considera-
/ ton.
This bill consists of two sections. ex-
GLIDING one which merely appropriates a
sum sufficient to carry the act into effect.
The first section provides for the immediate
coinage of the silver bullion in the treas
, ury which represents the so-called gain or
! seiSniorage or which would arise from the
coinage of all the bullion on hand which
gain or seigniorage this section declares
/ to be 800, 156.6S1. 1t directs that the money
/ SO coined or the certificates issued thereon
shall be used in the payment of public ex-
penditures. and provides that If the needs
/ of the treasury demand 1t, the Secretary of
the Treasury may. in his discretion, issue
/ silver certificates in excess of such coin
| age, not exceeding the amount of seignior-
age in said section authorized to be coined.
| The second section directs that as soon
as possible after the coinage of this seig-
niorage the remainder of the bullion held
by the government shall be coined into
! legal tender standard silver dollars and
that they shall be held in the treasury for
the redemption of the treasury notes issued
/ in the purchase of said bullion. 1t provides
that as fast as the bullion shall be coined
/ Tor the redemption of said notes, they shall!
not be reisSued, but shall be Cancelled and
| destroyed in amounts equal to the coin held
at any time In the treasury derived from
the coinage provided for and that silver
/ certificates shall be issued on such coin in
the manner now provided by law 1t is
i however. especially declared in said sec
ton that the act shall not be construed to
change existing laws relating to the legal
tender character or mode of REDEMPTION of
] the treasury notes issued for the purchase
( or the silver bullion to be coined
| The Bill unfortunately Constructed.
The entire bill is most unfortunately con-
structed. Nearly every sentence presents
uncertainty and invites controversy as TO
Its meaning and intent. The first section
Is especially faulty in this respect, and il
is extremely doubtful whether its language
Will permit the contamination of its sup
posed purposes. l am led to believe that
! the promoters Of the bill intended in this
section to provide for the coinage Of the
/ bullion constituting the gain or seigniorage
/ as 1T is called, into standard silver dollars:
and yet there is positively nothing in the
section to prevent its coinage into any de-
Scription of silver coins now authorized
under any existing law. ! suppose this sec
ton was also intended, in case the needs
of the treasury called for money faster than
| the seigniorage bullion could actually be
coined, to permit the issue of silver certifi-
Gates in advance of such coinage; but its
| language would seem to permit the issu-
ance of such certificates to double the
amount of seigniorage as stated, one-half
of which would not represent an ounce of
silver in the treasury. The debate upon
! this section in the Congress developed an
earnest and positive difference of opinion
as to its objection and meaning. In any
event / am clear that the present perpleX-
| tiles and embarrassmentS of the Secretary
of the Treasury ought not TO be augmented
! by devolving upon him the execution of a
| law uncertain and confused.
| l am not willing, however, to rest my
| objection to this section solely on these
grounds; in my judgment sound finance
| does not commend a further infusion of
| silver into our currency at this time unac-
| companied by further adequate provision
for the maintenance in our treasury of a
safe gold reserve.
! Doubt to the Secord Sections
| Meaning.
Doubts also arise as to the meaning and
construction of the second section of the
| bill If the silver dollars therein directed
| to be coined are the section provides, to
| be held in the treasury for redemption of
! treasury notes, it is suggested that, strictly
speaking, certificates cannot be issued on
such coin ''in the manner now provided by
law" because these dollars are money held
| in the treasury for the express purpose of
/ redeeming treasury notes. demand,
which would ordinarily mean that they
were set apart for the purpose of substitute
| ing them for these treasury notes. They
are not therefore held in such way as to
| furnish a basis for certificates according TO
any provision of existing law. If, however,
| upon these dollars, there is nothing in the
ca 70 Ind to rha note rio a