Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1894-03-30

Se1,'
BLAND BILL VETOED.
The President Returns IL TO the
House without HIS Approval-Re.
vivinG Confidence Threatened-Oan. |
ger to tho Gold Reserves.
WAsH1naToH. March 2o.-The president |
sent the following message to the house Of
1t noon to day:
ssTo the house of representatives: 81 re-
turn without my approval house bill num-
bered 4, $50, called IAN act directing the
coinage of silver bullion held In the treas.
ury and for other purposes
stAy strong desire to avoid Disagreement
with those in both houses of congress who
have supported this bill, would lead me to
approve It If could believe that the pub
lic good would not be thereby endangered,
and such action on my part would be
proper discharge of official duty. 1nss-
much, however, ~ am unable to satisfy
myself that the proposed legislation is
either wise or opportune, my conception
of the obligations and responsibilities at
tsched to the great Office I hold forbidsth
Indulgence of my personal desire and In
exorably confines me to that course which
II dictated BY my reason and Judgment,
and pointed out by q sincere purpose to
promote the general interests of our peo-
pie.
''Ths financial disturbance which swept
over the country during the last year was
unparalleled In its severity and disastrous
oonse quences. There seemed to be almost
an entire displace of faith In our financial
ability and loss of confidence in our fiscal
policy. Among those who attempted to
assign causes for our distress 1t was gen.
orally conceded that the operation of pro-
vision of law then in force which required
the government to purchase monthly
large amount of silver bullion snd issue its
notes in payment therefore, was either
entirely or to large extent, responsible
for our condition. This led to the repeal,
on the first day of November, 1898, of this
statutory provision. We had, however,
fallen 20 low in the depths of depression,
and timidity and apprehension had so COM
pletely gained control in financial circles,
that our rapid refrigeration could not be
reasonably expected.
"Our recovery has nevertheless steadily
progressed, and though less than five
the misohieyous silver. purchaee require
ment, wholesome Improvement il unmis-
takably apparent. Confidence in our alb
solute solvency is to such an extent re-
instated and faith In our disposition to
adhere to sound financial methods Is SO far
restored as to produce the most encourag-
ing results both at home and abroad. The
wheels of q domestic industry have beer
slowly set in motion and the tide of foreign
Investment has again started In our direc.
ton.
'Our recovery being so well under way,
nothing should be done to check our con-
valescence, nor should We forget that q
relapse at this time would almost surely
reduce US to q lower stage of financial dis.
tress than that from which We are just
| emerging.
81 believe that If the bill under consid-
Grafton should become law, 1t would be
regarded as retregression from the fnsn-
cial intentions indicated by our recent re-
peal of the provisions forcing silver bull
lion purchases, that 1t would weaken If not
destroy returning faith and confidence In
our eound financial tendencies, and that az
. consequence our progress to renewed
business health would be unfortunately
checked and a return to our recent dis
tressing plight seriously threatened.
to the currency conditions growing out Of
the law compelling the purchase of silver
by the governments that glance at such
conditions and partial review of the Law
referred to may not bs Improbable.
"Between the 18th day of August, 1890
when the law became operative, and thu
first day of November, 1898, when til,
clause It contained directing the purchase
of silver was repealed, there were pur
chased by the secretary of the treasur,
moro than 168. 00O. 900 Of ounces of silve
bullion. In payment for this bullion tn
government issued its treasury notes o
ly $3.50, OOO, 600, which notes were imms
diately added to the currency in circulation
among our people. Such notes were b,
the law made legal tender in payment o
all debts, public and private. except whel
otherwise expressly stipulated, and wer
made receivable for customs, taxes and al
; public dues, and when 80 received Nigh
be reissued. They were also permitted Il
be held by banking associations "a a par
of their lawful reserves. Ga the demsn,
.. of the holders, these treasury notes wer
, to be redeemed in gold or silver coin In tn
discretion of the secretary of the treasury
, but 1t was declared as q part of this re
! demption provision that It was the estah
!, lished policy of the United States to main
| tain the two metals on parity with eacl
other upon the present legal ratio or sucl
!. ratio as may be provided by law
"The money coined from such bulliol
WAS to be standard silver dollars, and afte
, | directing the immediate coinsge of 1ittl
less than "a. 000, 600 ounces, the law pro
. | vided that 20 much of the remaining bul
lion should be thereafter coined a. nigh
be necessary to provide for the redemptio,
4 "a
purchase and that amy gain or seigniorsg
ed for and paid into the treasury Thi
gain or seigniorage evidently indicates 8
much of the bullion owned by the gov
ernment as should remain after using
sufficient amount to coin as many stand
ard silver dollars as should equal ii
number the dollars represented by th
treasury notes issued in payment of tn
entire quantity of bullion. These treasur,
notes now outstanding and in circulation
amount to $152. ISL $50, and although
there has besn thus far but a comparative
ly small amount of this bullion coined, ys
the so-oalled gain or seigniorage as abov
defined which would aries from the coin
age of the entire mass has been easily as
certained to be quantity of bullion suff
cient to make when coined 55, 15e ,68
standard silver dollars.
"Considering the present intrinsic re
lations between gold and silver, tn
maintenance of the parity between tn,
two metals. as mentioned in this law, Cal
mean nothing less than the maintenance
of such q parity in the estimation ant
confidence of the people who use on
money in their daily transactions. Mani
festly the maintenance of this parity cal
only be accomplished, SO far as 1t is at
fected by these treasury notes, and in tn
estimation of the holders of the same, b,
giving to such holders, on their redemp
which they prefer. It follows that Will
to be paid on such redemption to the dis
the exercise of this discretion, If opposed
to the demand of the holder, 10 entirel,
Inconsistent with the effective and bene
&cial maintenance of the parity between tn
two metals.
sIf both gold and silver are to serve us
money, and If they together are to supply
to our people q safe and stable currency
the necessity of preserving this parity il
obvious. Such necessity has been repeat
eddy conceded in the pls forms of both pc
litical parties, and in our federal statutes
It Ia nowhere more emphatically recog
niEed than In the recent law which repealed
the provision under which the bullion nov
on hand was purchased. The law insiste
upon the maintenance of the parity II
| value of the coins of the two metals, ant
| the equal power Of every dollar at all time
In the markets and in the payment o
debts.'