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Show EASTERN. j THE VKTO JIi:SSV;K. Washington. 22. To the Senate of the U.S.: Herewith I ruturn Senate Sen-ate bill, (117, entitled "An act to fix tho amount of U. S. notes and the circulation of National banks, nnd for other purposes," without my approval. approv-al. In doing so I must express my regret at not being able to i;ivo my assent to a measure which lias received re-ceived tho s motion of tho majority of tho legislators chosen by the people-to people-to tnako laws for their guidance, and I havo strenuously nought to find Muflicicnt argument tn justiliy such assent, but unsuccessfully. Pratically it is a question whether the measure under discussion would giyo an additional dollar to the irredeemable irre-deemable paper currency of tho country or not, and whether by requiring re-quiring three-fourths of the reserves to be retained by the banks and prohibiting pro-hibiting interest to be received on tho balance, it might not prove a contraction; contrac-tion; but the laetcannot bo concealed that theoretically the bill increases the paper circulation $100,000,000 less' only the amount of the reserves, restrained, re-strained, from circulation by tho provisions provi-sions f tlio second section. The measure has boon supported on tho theory that it would give an) increase of circulation, It is a lair inference, therel'ore.Lhat if tho measure should fail to crealo tho abundance of circulation expected of it, the friends of the measure, particularly par-ticularly those out of Congress, would clamor for such inflation as would Igivo the expected relief. The theory in my belief is that it is a departure from the true principles of finance, tho national i n teres t, the national obligations to its creditors, Congressional Congres-sional promises, party pledges on my part with tho political parties, and of my personal views, and the premises made by mc in every annual message sent to Congress, and in each inaugural inaugu-ral address. In my annual mecsage to Congress in December, lSill), the following passages appear: '-'Among tho evils growing out of the lie-bull ion, and not yet referred to, is that uf the irredeemable currency. It is an evil which I hope will receive your most earnest attention. It is the duty and ono of the highest duties of Government to secure to the citizens citi-zens a medium of exchange of fi.nd j and unvaring value. This implies a j return to a specie basis, and no substitute sub-stitute for it am bo devised. It ! should be commenced now aid I reached At the earliest practicable moment a insistent with a f.iir regard I to the - intercuts ol the debtor class. Immediate resumption, if practicablo, would not be desirable. It would compel the debt jr class to pay beyond their contracts a premium ion gold ct the date of their purchase, and would bring bankruptcy and ruin ' to thousands. Fluctuations, however . iu tno paper value of the measure of jail values, gold, is detrimental to the I interest of trade. It makes tho man of busin ss an involuntary gambler, I for in all wiles whero future payment is to be made both parlies i-pycuUte as j to what will be the value on currency, to be Jpaid and received. "I earn-I earn-I estly recommend to you such legislation legisla-tion a-j will insure tin- gradual return to specie payments and put a:i im-Ime.liate im-Ime.liate nlop to the fi'.iclu.ilioiis in the value ol currency." I I still adhere to the views then expressed. ex-pressed. As early as Dee. -J, ldii-l, the House of liercsentjtives p;u-.sed A resolution, by a vote of 1-1 1 to six. concurring in tho views of the Secretary Secre-tary ot the Treasury in relation to the necessity of a contra tion of tho cur-i roncy, with a view of as early arc-sumption arc-sumption of specie payment as the ; business interest of the C ountry i would permit, pledging cooperative action to this end ns speedily lis po-s- j ihle. Tho lir-t act pas-M by the -lht' Congress, on tho 1 Vh of March, lt-tl;), ! was "An act to -strengthen the public credit of the United Stales. (Here the act referred to is ius;rlid in full. ; This act ftitl remains is a continuing continu-ing pled 0 of the faith of the U. S. to make provision at tun rarlic-t practicablo moment for the redemption re-demption of Uoitod States notes in coin. A declaration contained; in the act of Juno 2Uth, Hol, created an obligation that the total amount of United States notes issued or to bo issued is-sued should never exceed $ 100,000,-00). 100,000,-00). Tho amount in actual circulation circula-tion was actuady ml need to J-i-'nv 000,000, at which point Congress pusscd nn act in February 4th, 1m;,s, suspending the further reduction of , tho'currency. The $ 14plKHi,(XK) havo i evor been regarded iis a reservi to be used only in case of emergency, such' as has occurred on siiveral oec;isious, I and must occur when from anv cause tho revenues suddenly fall below the expenditures and such reserve is necessary because the fractional currency cur-rency Amounting to "0,uui,(l(tO is redeemable re-deemable in legal tenders ou call. It may bo said that such a return ol fractional currency for redemption is improbable, but let tttcps be Uiken for a return to a specie basis, and it j will be found that silver will tako tho placo of fractional currency as rapidly rapid-ly as it can be supplied. When tho premium on gold rcaehiw a sufficiently sufficient-ly low point, with tlio amount of C. S. notes to bo issued and fixed permanently per-manently within the proper limits, and tlio Treasury is to btreiuHhcnf d as to be able to redeem them in coin on demand, it will then bo safe- to inaugurate a syhtein of free Linking with such provisions u to make compulsory redemption of oir-' rmJatuig notes uf banks iu coin or U. S. nolo, themselves redeem ahlo and mado equivalent to coin. As mefisuro preparatory to froo banking, or for placing Government in a position to redeem its notes in ocirtat tho earliest practicable moment, mo-ment, tho revenues of the country should be incre:wcd so as to pay tho current oxpenses, provide lor tho sinking fund required by law. and also for a Burplus to bo retained in tho Treasury, iu gold. I am not i, Im-liover Im-liover in any artificial method of making mak-ing paper money equal to coin when 'coin is not owned or" heliU really to re loom the pronto to pay; for paper money is nothing nioro than promises to pny, and valuable exactly in proportion to the amount of win it cuu .bo cuuveried into. While coin is not used as tho circulating circula-ting medium, in-tho currency of the country is not con verlaUn into it nt par, it becomes an Article of commerce com-merce an finyuUiiT product, tlio Hitr-pluH Hitr-pluH will seek a foreign market, as well its any other surplus. Tlio balance bal-ance of trade has nothing to do with tho question ol tho duties on imports being required iu coin to create A limited dcnm.nd fur gold, and about enough to 'satisfy that demand remains in tho country. To increase this supply 1 Heo no way open but by government hoarding, through tho meaiiM aIjovo given, and possibly by requiring National banks to aid. It iti "claimed by the advocates ol tlio measure herewith returned, that there is nil unequal distribution ,,f thu banking capital uf the country. I was disposed to give great woiyht iu this view ol tho question lit first, but ou rellcctlun it will be remembered that thorn still remain $1,000,000 or tho authorized hunk jW" circulation assigned to tho Slates having their quota not ycLtakon. n addition addit-ion to tins the States bavinpless than Ihoir quota of tho bank insulation havo tho option of $200.000000 more to bo taken from those Slats having more than their proportion! When this is all taken up, or wlpn specio payments aro fully restored! Gr arc in rapid process of robtoralitn will bo lime to consider iho qucsl'un of more currency. U. S. Git ant. |