The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-30

Washington, March 29-The president
has sent the House the following mes
sage, vetoing the Bland silver seignior-
age bill:
To the House of Representatives 1
return without my approval the House
bill number 4,59e, entitled AN act di-
recting the coinage Of silver bullion
held in the treasury and for other pur-
poses
My strong desire to avoid disagree
ment with those in both houses of Con-
gress, who have supported this BILL
would lead me to approve it, if L could
believe the public good would not be
thereby endangered and such action on
my part would be the proper discharge
of my official duty.
Inasmuch, however, as 1 am unable
to satisfy myself that the proposed leg
islation is either wise or opportune, my
conception of the obligations and re-
sponSiDilities attached to the great Of
flee l hold forbids the Indulgence in my
personal desires, and ineXorably con-
fines me to that course which is die
tated by my reason and judgment, and
pointed out by a sincere purpose to
protect and promote the general inter-
ests Of the people.
The financial disturbance which swept
over the country during the last year
vas unparalleled in its severity and
disastrous in its consequence. There
Yseemed to be almost an entire
displacement of faith in our financial
ability and loss Of confidence in our
fiscal policy.
Cause of the Depression.
Among those who attempted to as
sign causes for our distress, it was
very generally conceded that the opera
ton of the provision of the law then in
force, which required the government
to purchase monthly a large amount of
silver bullion and issue its notes i'll pay
ment therefor was, either entirely or to
a large extent, responsible for our con-
dition.
This led to the repeal. on the first
day of November, 49, Of this statu-
tory provision. We b, d, however, fall
len so low in the depths of depression
and timidity and apprehension had sc
completely gained control in financial
circles, that our rapid recuperation
could not be reasonably expected.
Our recovery has, nevertheless, stead
lily progressed, and though less than
five months have elapsed since the re-
peal of the miSchleVous silver purchase
requirement. wholesome improvement
is Enthusiastically apparent and conf
dence in our absolute solvency is tC
such extent reinstated, and the faith in
our disposition to adhere to- sound
financial methods is so far restored
as to produce most encouraging results
both at home and abroad.
The wheels Of domestic industry have
been slowly set in motion, and the tide
of foreign investment again started il
our direction. Our recovery being Sc
well under way, nothing should be done
II, oh
we forget that a relapse at this time
would almmosr surely reduce US to {
lower stage of financial distress thar
that from which we are just emerging
i. believe If the bill under oonsidera tor
should become a law, it would be re
garded as a retrogreSsion from the
financial intentions INDUCED by our re
cent repeal Of the provision forcing sill
yer bullion purchases; that it would
weaken. if it did not destroy, return
ing faith and confidence in our SOUND
financial tendencies, and that in con
sequence our progress toward renewed
business health would be unfortunate
II. checked, and a return to our recon
distressing plight seriously threatened
Review of the SituatiOn.
This proposed legislation is so related
to the currency conditions growing GU
of the law compelling the purchase o.
silver by the government, that a glance
at such conditions and partial review
of the law referred to, may not be un
profitable.
Between the 14th day of August, 1890
when the law became operative, anC
the LIST day of November, 1898, wher
the clause it contained directing pur
chase Of silver was repealed there
were purchased by the secretary of the
treasury more than 100000 ounce!
Of silver bullion. In the payment fol
this bullion the government ISSUED
treasury notes Of various denomina
lions, amounting TO nearly S156,000, 600
which notes were Immediately added
to the currency in circulation among
our people. Such notes were, by law
made legal tender in payment of al
debts, public and private, except wheI
otherwise expressly stipulated, anC
were made receivable for customs, tax
es. and all public dues, and when S,
received might be reissued.
They were also permitted to be heiC
bv banking associations as part o
their lawful reserves. On demand o
the holders, these treasury notes Wer
70 be redeemed in gold or silver coli
II discretion of the secretary of tn
treasury: but it was declared as par
Of this redemption provision that
was the established policy of the Unit
ed States to maintain the two metal
on a parity with each other upon tn
present legal ratio or such ratio a
may be provided by law, the none.
coined from such bullion' to be stand
ard silver dollars and after directing
the immediate coinage of a little les
than rs GOO, 900 ounces, the law provid
ed as much of remaining bullion SHOULD
be thereafter coined as might be nee
essary to provide for the redemption
of the treasury notes issued on il
purchase. and that any gain or seig
liorage arising from such coinag
hall be accounted for and paid int
he treasury This gain, or seignior
ge, evidently indicates so much of tn
e. lullion owned by the government a
nay remain after using a sufficien
nount to coin as many standard sill