_To the Senate of the United States_:
The bill which has passed the House of Representatives and the Senate
entitled "An act to repeal that part of an act of Congress which prohibits
the circulation of bank notes of a less denomination than $5 in the
District of Columbia" has received my attentive consideration, and I
now return it to the Senate, in which it originated, with the following
objections:
1. The bill proposes to repeal the existing legislation prohibiting the
circulation of bank notes of a less denomination than $5 within the
District of Columbia without permitting the issuing of such bills by
banks not now legally authorized to issue them. In my judgment it will
be found impracticable in the present condition of the currency to make
such a discrimination. The banks have generally suspended specie
payments, and a legal sanction given to the circulation of the
irredeemable notes of one class of them will almost certainly be so
extended in practical operation as to include those of all classes,
whether authorized or unauthorized. If this view be correct, the
currency of the District, should this act become a law, will certainly
and greatly deteriorate, to the serious injury of honest trade and
honest labor.
2. This bill seems to contemplate no end which can not be otherwise more
certainly and beneficially attained. During the existing war it is
peculiarly the duty of the National Government to secure to the people a
sound circulating medium. This duty has been under existing
circumstances satisfactorily performed, in part at least, by authorizing
the issue of United States notes, receivable for all Government dues
except customs, and made a legal tender for all debts, public and
private, except interest on public debt. The object of the bill
submitted to me, namely, that of providing a small-note currency during
the present suspension, can be fully accomplished by authorizing the
issue, as part of any new emission of United States notes made necessary
by the circumstances of the country, of notes of a similar character but
of less denomination than $5. Such an issue would answer all the
beneficial purposes of the bill, would save a considerable amount to the
Treasury in interest, would greatly facilitate payments to soldiers and
other creditors of small sums, and would furnish to the people a
currency as safe as their own Government.
Entertaining these objections to the bill, I feel myself constrained to
withhold from it my approval and return it for the further consideration
and action of Congress.