NAYS-Messrs. ALLEN, Bate, Berry, Black-tion of a provision of law then in force which burn, Blanchard, Buil r, Call, Camden, Cock required the Government to purchase monthly a rell, Coke, Colquitt, Dubois, Faulkner, Gibson, large amount of silver bullion and issue its notes Gordon, Hansbrough, Harris, Hill, Irby, Jones in payment therefor, was either entirely, or to a of Ark., KYLE, Lindsay, Martin, Mills, large extent, responsible for our condition. Mitchell of Ore., Morgan, Murphy, Pasco, This led to the repeal, on the 1st day of NovemPEFFER, Perkins of Cal., Pettigrew, Power, ber, 1893, of this statutory provision. Pugh, Quay, Ransom, Roach, Shoup, STEWART, Teller, Turpie, Vest, Voorhees, White of Cal., Wolcott-44.

NOT VOTING-Messrs. Cameron, Daniel, Dixon, George, Gorman, Gray, Higgins, Hunton, Jones of Nev., McLaurin, Platt, Sherman, Squire, Vance-14.

March 15-The bill was then passed-yeas 44, nays 31, (not voting 10):

YEAS-Messrs. ALLEN, Bate, Berry, Blackburn, Blanchard, Butler, Call, Cockrell, Coke, Colquitt, Daniel, Dubois, Faulkner, George, Gordon, Hansbrough, Harris, Hunton, Irby, Jones of Ark., KYLE, Lindsay, McLaurin, Martin, Mills, Mitchell of Ore.. Morgan, Pasco, PEFFER, Perkins of Cal., Pettigrew, Power, Pugh, Quay, Ransom, Roach, Shoup, STEWART, Teller, Turpie, Vest, Voorhees, White of Cal., Wolcott-44.

NAYS Messrs. Aldrich, Allison, Brice, Caffery, Carey, Chandler, Cullom, Davis, Dolph, Frye, Gallinger, Gibson, Gorman, Hale, Hawley, Higgins, Lodge, McMillan, McPherson, Manderson, Mitchell of Wis., Morrill, Murphy, Palmer, Platt, Proctor, Smith, Stockbridge, Vilas, Washburn, Wilson of Iowa-31.

NOT VOTING-Messrs. Camden, Cameron, Dixon, Gray, Hill, Hoar, Jones of Nev., Sherman, Squire, Vance-10.

We had, however, fallen so low in the depths of depression, and timidity and apprehension had so completely gained control in financial circles, that our rapid recuperation could not be reasonably expected. Our recovery has, nevertheless, steadily progressed, and though less than five months have elapsed since the repeal of the mischievous silver-purchase requirement, a wholesome improvement is unmistakably apparent. Confidence in our absolute solvency is to such an extent reinstated and faith in our disposition to adhere to sound financial methods is so far restored as to produce the 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 has again started in our direction.

Our recovery being so well under way, nothing should be done to check our convalescence; nor should we forget that a relapse at this time would almost surely reduce us to a lower stage of financial distress than that from which we are just emerging.

I believe that if the bill under consideration should become a law, it would be regarded as a retrogression from the financial intentions indicated by our recent repeal of the provision forcing silver-bullion purchases; that it would weaken, if it did not destroy, returning faith and confidence in our sound financial tendencies, and

Objections of the President, March 29, that as a consequence our progress to renewed

1894.

To the House of Representatives:

business health would be unfortunately checked and a return to our recent distressing plight seriously threatened.

I return without my approval House bill This proposed legislation is so related to the numbered 4956, entitled "An act directing the currency conditions growing out of the law comcoinage of the silver bullion held in the Treas-pelling the purchase of silver by the Government, ury, and for other purposes." that a glance at such conditions and a partial review of the law referred to, may not be unprofitable.

My strong desire to avoid disagreement with those in both Houses of Congress who have supported this bill would lead me to approve it if I could believe that the public good would not be thereby endangered, and that such action on my part would be a proper discharge of official duty. Inasmuch, however, as I am unable to satisfy myself that the proposed legislation is either wise or opportune, my conception of the obligations and responsibilities attached to the great office I hold forbids the indulgence of my personal desire, and inexorably confines me to that course which is dictated by my reason and judgment, and pointed out by a sincere purpose to protect and promote the general interests of our people.

Between the 14th day of August, 1890, when the law became operative, and the 1st day of November, 1893, when the clause it contained directing the purchase of silver was repealed, there were purchased by the Secretary of the Treasury more than 168,000,000 ounces of silver bullion. In payment for this bullion the Government issued its Treasury notes of various denominations, amounting to nearly $156,000,000, which notes were immediately added to the currency in circulation among our people. Such notes were by the law made legal tender in payment of all debts, public and private, except when otherwise expressly stipulated, and were The financial disturbance which swept over made receivable for customs, taxes, and all pubthe country during the last year was unparalleled | lic dues, and when so received might be reissued. in its severity and disastrous consequences. They were also permitted to be held by banking There seemed to be almost an entire displace-associations as a part of their lawful reserves. ment of faith in our financial ability and a loss of confidence in our fiscal policy. Among those who attempted to assign causes for our distress it was very generally conceded that the opera

On the demand of the holders these Treasury notes were to be redeemed in gold or silver coin in the, discretion of the Secretary of the Treasury; but it was declared as a part of this redemp

The conditions I have endeavored to present may be thus summarized:

tion provision that it was "the established policy | join upon him, a continuation of such redempof the United States to maintain the two metals tion. 'on a parity with each other upon the present legal ratio or such ratio as may be provided by law." The money coined from such bullion was to be standard silver dollars, and after directing the immediate coinage of a little less than 28,000,000 ounces, the law provided that as much of the remaining bullion should be thereafter coined as might be necessary to provide for the redemption of the Treasury notes issued on its purchase, and that "any gain or seigniorage arising from such coinage shall be accounted for and paid into the Treasury."

This gain or seigniorage evidently indicates so much of the bullion owned by the Government as should remain after using a sufficient amount to coin as many standard silver dollars as should equal in number the dollars represented by the Treasury notes issued in payment of the entire quantity of bullion. These Treasury notes now outstanding and in circulation amount to $152,951,280, and although there has been thus far but a comparatively small amount of this bullion coined, yet the so-called gain or seigniorage, as above defined, which would arise from the coinage of the entire mass, has been easily ascertained to be a quantity of bullion sufficient to make when coined 55,156,681 standard silver dollars. Considering the present intrinsic relation between gold and silver the maintenance of the parity between the two metals, as mentioned in this law, can mean nothing less than the maintenance of such a 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 accomplished, so far as 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 silver, which they prefer. It follows that while in terms the law leaves the choice of coin to be paid on such redemption to the discretion of the Secretary of the Treasury, the exercise of this discretion, if opposed to the demands of the holder, is entirely inconsistent with the effective and beneficial maintenance of the parity between the two metals.

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, as gain or seig. niorage, 55,156,681 additional standard silver dollars.

Second. There are outstanding and now in circulation Treasury notes issued in payment of the bullion purchased amounting to $152,951,280. 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 of their lawful reserves, and they are redeemed 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 to whom such notes have been distributed as currency 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.

Having referred to some incidents which I deem relevant to the subject, it remains for me to submit a specific statement of my objections to the bill now under consideration.

This bill consists of two sections, excluding 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 Treasury which represents the socalled gain or seigniorage, or which would arise from the coinage of all the bullion on hand, which gain or seigniorage this section declares to be $55,156,681. It directs that the money so coined or the certificates issued thereon shall be used in the payment of public expenditures, and provides that if the needs of the Treasury demand it, the Secretary of the Treasury may in his discretion issue silver certificates in excess of such coinage, not exceeding the amount of seigniorage in said section authorized to be coined.

If both gold and silver are to serve us as money and if they together are to supply to our people a safe and stable currency, the necessity of preserving this parity is obvious. Such ne- The second section directs that as soon as cessity has been repeatedly conceded in the plat-possible after the coinage of this seigniorage the forms of both political parties and in our Federal remainder of the bullion held by the Governstatutes. It is nowhere more emphatically recog- ment shall be coined into legal-tender standard nized than in the recent law which repealed the silver dollars, and that they shall be held in the provision under which the bullion now on hand Treasury for the redemption of the Treasury was purchased. This law insists upon the notes issued in the purchase of said bullion. It "maintenance of the parity in value of the coins provides that as fast as the bullion shall be coined of the two metals and the equal power of every for the redemption of said notes, they shall not dollar at all times in the markets and in the pay-be reissued but shall be canceled and destroyed ment of debts."

in amounts equal to the coin held at any time in The Secretary of the Treasury has therefore, the Treasury derived from the coinage provided for the best of reasons, not only promptly com- for, and that silver certificates shall be issued on plied with every demand for the redemption of such coin in the manner now provided by law. these Treasury notes in gold, but the present It is, however, especially declared in said secsituation, as well as the letter and spirit of the tion that the act shall not be construed to change law, appear plainly to justify, if they do not en-existing laws relating to the legal-tender charac

ter or mode of redemption of the Treasury notes issued for the purchase of the silver bullion to be coined.

not to be found in legislation affecting subjects so important and far-reaching as our finances and currency. In stating other and more important The entire bill is most unfortunately con- reasons for my disapproval of this section, I structed. Nearly every sentence presents un- shall, however, assume that under its provisions certainty and invites controversy as to its mean- the Treasury notes issued in payment for silver ing and intent. The first section is especially bullion will continue to be redeemed as heretofaulty in this respect, and it is extremely doubt-fore in silver or gold at the option of the holdful whether its language will permit the consumers; and that if when they are presented for mation of its supposed purposes. I am led to redemption, or reach the Treasury in any other believe that the promoters of the bill intended manner, there are in the Treasury coined silver in this section to provide for the coinage of the dollars equal in nominal value to such Treasury bullion constituting the gain or seigniorage, as it notes, then and in that case the notes will be deis called, into standard silver dollars; and yet stroyed, and silver certificates to an equal amount there is positively nothing in the section to pre- be substituted. vent its coinage into any description of silver coins now authorized under any existing law.

I am convinced that this scheme is ill-advised and dangerous. As an ultimate result of its operation, Treasury notes which are legal tender for all debts public and private, and which are redeemable in gold or silver, at the option of the holder, will be replaced by silver certificates which, whatever may be their character and description, will have none of these qualities. In anticipation of this result, and as an immediate effect, the Treasury notes will naturally appreciate in value and desirability. The fact that gold can be realized upon them, and the further fact that their destruction has been decreed when they reach the Treasury must tend to their with

I suppose this section 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 certificates in advance of such coinage; but its language would seem to permit the issuance 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 object and meaning. In any event, I am clear that the present perplexities and embarrass-drawal from general circulation to be immediments of the Secretary of the Treasury ought not to be augmented by devolving upon him the execution of a law so uncertain and confused.

I 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 unaccompanied by further adequate provision for the maintenance in our Treasury of a safe gold reserve.

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, as the section provides, to be held in the Treasury for the redemption of Treasury notes, it is suggested that, strictly speaking, certificates can not 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, on demand, which would ordinarily mean that they were set apart for the purpose of substituting them for these Treasury notes. They are not, therefore, held in such a way as to furnish a basis for certificates according to any provision of existing law.

ately presented for gold redemption, or to be hoarded for presentation at a more convenient season. The sequel of both operations will be a large addition to the silver currency in our circulation and a corresponding reduction of gold in the Treasury. The argument has been made that these things will not occur at once, because a long time must elapse before the coinage of anything but the seigniorage can be entered upon.

If the physical effects of the execution of the second section of this bill are not to be realized until far in the future, this may furnish a strong reason why it should not be passed so much in advance; but the postponement of its actual operation can not prevent the fear and loss of confidence and nervous precaution which would immediately follow its passage and bring about its worst consequences. I regard this section of the bill as embodying a plan by which the Government will be obliged to pay out its scanty store of gold for no other purpose than to force an unnatural addition of silver money into the hands of our people. This is an exact reversal of the policy which safe finance dictates, if we are to preserve parity between gold and silver and maintain sensible bimetallism.

If, however, silver certificates can properly be issued upon these dollars, there is nothing in the We have now outstanding more than $338,section to indicate the characteristics and func-000,000 in silver certificates issued under existtions of these certificates. If they were to be of the same character as silver certificates in circulation under existing laws they would at best be receivable only for customs, taxes, and all public dues; and under the language of this section it is, to say the least, extremely doubtful whether the certificates it contemplates would be lawfully received even for such purposes.

Whatever else may be said of the uncertainties of expression in this bill, they certainly ought

ing laws. They are serving the purpose of money usefully and without question. Our gold reserve, amounting to only a little more than $100,000,000, is directly charged with the redemption of $346,000,000 of United States notes. When it is proposed to inflate our silver currency it is a time for strengthening our gold reserve instead of depleting it. I can not conceive of a longer step toward silver monometallism than we take when we spend our gold to buy

silver certificates for circulation, especially in | Sibley, SIMPSON, Snodgrass, Springer, Stallings, view of the practical difficulties surrounding the replenishment of our gold.

Treasury, purchased under the act of July 14, | tender standard silver dollars as fast as possible, 189c, entitled, "An act directing the purchase and the coin shall be held in the Treasury for of silver bullion and the issuing of Treasury the redemption of the Treasury notes issued in notes thereon, and for other purposes," to the the purchase of said bullion. That as fast as amount of the gain or seigniorage of such bul- the bullion shall be coined for the redemption lion, to wit: The sum of $55,156,681, and such of said notes, the notes shall not be reissued but coin or the silver certificates issued thereon shall shall be canceled and destroyed to amounts be used in the payment of public expenditures, equal to the coin held at any time in the Treasand the Secretary of the Treasury may, in his ury, derived from the coinage herein provided discretion, if the needs of the Treasury demand for, and silver certificates shall be issued on such it, issue silver certificates in excess of such coin- coin in the manner now provided by law: Proage: Provided, That said excess shall not exceed vided, That this act shall not be construed to the amount of the seigniorage as herein author- change existing law relating to the legal-tender ized to be coined. character or mode of redemption of the Treas. ury notes issued under said act of July 14, 1890. SEC. 3. That a sufficient sum of money hereby appropriated to carry into effect the pro⚫ visions of this act.

SEC. 2. After the coinage provided for in the first section of this act, the remainder of the silver bullion purchased in pursuance of said act of July 14, 1890, shall be coined into legal

XX.

THE CURRENCY QUESTION, IN THE SECOND SESSION OF THE FIFTY-SECOND CONGRESS, AND THE FIRST AND SECOND SESSIONS OF THE

FIFTY-THIRD CONGRESS.

[For previous votes on the Coinage of Silver | then the consideration thereof shall be continued see McPherson's HAND-BOOK OF POLITICS FOR during the next legislative day until the hour of 1878, pp. 127-139; HAND-BOOK OF POLITICS 2 o'clock p. m., and at that hour, unless said FOR 1880, pp. 46, 50, 146; HAND-BOOK OF bill, if considered in the Committee of the POLITICS FOR 1882, pp. 25-37, 57, 174; HAND- Whole, shall have then been reported back to BOOK OF POLITICS FOR 1884, pp. 143, 144; the House and disposed of, the same shall be HAND-BOOK OF POLITICS FOR 1886, pp. 56, reported to the House, with such amendments as 93-100, 228; HAND BOOK OF POLITICS FOR may have been agreed upon in the committee, 1888, pp. 48, 145, 146; HAND-BOOK OF POLI- and the previous question shall be considered as TICS FOR 1890, pp. 143-157, 157-169; HAND ordered on the amendments that may be then BOOK OF POLITICS FOR 1892, 25-30, 212-220, pending and on the bill to its engrossment, third 241-244.] reading, and also to its passage; and the vote shall then be taken in the House on the pending amendments, the engrossment, third reading, and passage of the bill; and thereafter the Speaker shall not entertain a motion to fix the

IN SECOND SESSION OF FIFTY-
SECOND CONGRESS.

IN HOUSE OF REPRESENTATIVES.

Vote on Considering H. R. 10143, "Today to which the House shall adjourn, to adjourn, Increase the Circulation of National

Banks and for Other Purposes." 1893, February 9-Mr. CATCHINGS reported from the Committee on Rules this resolution:

66

Resolved, That immediately upon the adoption of this resolution the House proceed to consider H. R. 10143, A bill to increase the circulation of national banks, and for other purposes,' and if such bill shall not be disposed of n said day then the consideration thereof shall be continued during the next legislative day." Mr. BACON gave notice of a purpose to offer this as a substitute:

take a recess, or any other dilatory motion, until the bill shall have been finally disposed of by the House."

On the demand for the previous question upon it, the yeas were 152, nays 143, (not voting 34):

YEAS-Messrs. Abbott, Alderson, Allen, Antony, Arnold, Babbitt, Bailey, BAKER of Kan., Bankhead, Bartine, Beeman, Belknap, Beltzhoover, Blanchard, Bland, Blount, Boatner, Bowers, Breckinridge of Ark., Bretz, Broderick, Brookshire, J. B. Brown, Bryan, Buchanan of Va., Bullock, Bunn, Burrows, Butler, Bynum, Caminetti, Capehart, Clark of Wyo., Clarke of Ala CLOVER, Cobb of Ala., Compton; Immediately upon the adoption of this reso- Cooper of Ind, Cowles, Cox of Tenn., Crain, lution the House shall proceed to consider the Crawford, Culberson, DAVIS, De Armond, bill (H. R. 10143) to increase the circulation Dockery, Dolliver, Dungan, Edmunds, Ellis of of national banks and for other purposes; and Ky., Enloe, Epes, Everett of Ga., Flick, Funston, if said bill shall not be disposed of on this day | Fyan, Gantz, Grady, HALVORSON, Hatch,