The New York Herald Newspaper, April 23, 1874, Page 5

7 VETO. The President Saves the Credit of the Country. HONESTY TRIUMPHS The Inflation Bill Returned to the Senate Unsigned. MESSAGE OF THE CHIEF MAGISTRATE Brave Condemnation of ‘the Principle of the Measure. ANOTHER APPOMATTOX. Dismay of the Advecates of Repudiation and Worthless Money. LOGAN GNASHES HIS TEETH. Ties of Party Breaking and Politi- eal Apostates Unveiling. The Hard Money Force in Con- gress Strengthened. THE SOLID CITY MEN REJOICE. Reception of the Veto by the Country. THE VETO, ——-- WASHINGTON, Apri 22, 1874, fhe President to-day returned, unsigned, to the @enate the billauthorizing ap increase of the cur- Bency, which emanated from that body, with the following Veto Message :— To THE SENATE OF THE UNITED STATRS:~ Herewith I return Senate bill No. 617, entitted “An act to ix the amount of United States notes “ana the circulation of national banks and for @tber purposes,” without my approval. In doing so I must express my regret at not being able to wve my assent to & measure which has received the sanction of a ma- dority of the legislators chosen by the Deeple to make laws for their guidance, and I have Stadiously sought to find suMicient arguments to mstify such assent, but unsuccessfully. Practi- cally it is a question whether the measure under @iecussion would give an additional dollar to the srredecmable paper currency of the country or not, aad whether, by requiring three-fourths of the re- Gerves tobe retained ny the banks ant protibiting interest to be recetved‘on the balance, it might Ot prove a contraction. DEPARTURE FROM THE TRUE PRINCIPLES OF Fi- NANCE. But the fact cannot be concealed that, theoreti- @ally, the bill increases the paper circulation $100,000,000, less only the amount of reserves re- Strained from circulation by the provisions of the second section. The measure has been supported on the theory that it would give increased circuia- Mon. It is a fair inferenze, therefore, that if in Practice the measure should fail to create the abun- @ance of circulation expected of tt the friends of the measure, particularly those out of Congress, would clamor for such infation as would give the ex- pected relief, The theory, in my belief, is a de- parture from the true principles of finance, na- tional interest, national obligation to creditors, Congressional promises, party pledges on the part Of both political parties, and of the personal views and promises made by mein every annual message sent to Congress and in each inaugural address, ANNUAL RECOMMENDATIONS. In my annual message to Congress in December, 2869, the following passages appear :— Among the evils growing out of the rebellion and not yet referred to is that of an irredeemable currency. It ig an evil which I hope will receive your most earnest attention. It is a duty, and one of the highest duties, of the government to secure to the cilizen a medium of exchanye of fixed, unva- rying value. This iroplies a return to a specie basis, and no substitute for it can be dev.sed. It should be commenced now and reached at the earifest practicable moment consistent with a lfair regard to the interest of the debtor class. Immediate resumption, if practicable, would not be desirable, It would compel the debtor class to pay beyond their contracts the premium on gold at the date of their purchase and would bring bank- Fuptcy and ruin to thousands. Fluctuations, however, in the paper value of the measure of all values—gold—is detrimental to the interest of trade. It makes the man of business an involun- tary gambler, for in all sales where future payment 4s to be made both parties speculate as to what will be the value of the currency to be paid and received, 1 earnestly recommend to you, then, such legisia- tion as will ineure a gradual return to specie pay ments snd put an immediate stop to fuctuations 4n the value of currency. FORMER VIEWS UNCHANGED, I still adhere to the views then expressed. As early as December 4, 1865, the House of Represent- atives passed a resolution, by a vote of 144 yeas ‘to 6 Nays, concurring in the views of the Secretary of the Treasury in relation to the necessity of a contraction of the currency, with a view to as early & resumption of specie payments as the business interests ofthe country would permit, and pledging co-operative action to this end as speedily as possibic. CONGRESSIONAL PLEDGES. ‘The first act passed by the Forty-first Congress, on the 18th day of March, 1869, was as follows:— AN ACT TO STRENGTHEN THE PUBLIC CREDIT OF THE UNITED STATES :— Be it enacted, &c., That in order to remove any doubt as to the purpose of the govern- ment to discharge all its obligations to the public creditors, and to settle conficting questions and in+ terpretations of the law by virtae of which such obli- gations have been contracted, it is hereby provided and declared that the faith of the United States is solemnly pledged to the payment in coin, or its equivalent, of ail the obligations of the United States, and of all the mterest-bearing obligations, *] except tm cases where the lew authorizing the issue of any such obligations kes expréssly provided ‘what the same may be paid in iawful money, or in other currency than gold and ailver; but none of said interest-bearing obligations not siready due shail be Fedeemed or paid before maturity, unless at such times as the United States notes shall be convertible into coin at the option of the holder, OF unless at such time bonds of the United states bearing a lower rate of interest than bonds to be redeemed can be sold at par in coin, and the United States aizo solemnly pledges ite iaith to make provision at the earliest practicable period for the redemption of United States notes in coin, ‘This act sti remains as@ continuing pledge of the fatth of the United States to make provision ot the earliest practicable moment for the redemp- tion of the United States notes in coin. THE LEGAL BRSERVS. A declaration contamed in the aet of June 2), 1864, created an obligation that the total amount of United States notes issued or to be issued should never exceed $400,000,000. The smount in actual circujation was actually reduced to $356,000,000, at which point Gongrese passed the act of February 4, 1668, suspending the further re- duction of the currency. The $44,000,000 have even been regarded ag a reserve t® be used only in case of an emergency, such a8 kas occurred on several occasions and must gecur when, from any cause, revenues suddenly fall below expenditures; and such a reserve is necessary, because the frac- tional currency, amounting to $50,000,000, is re- Geemabie in legal tender on call, It may be said that such @ return of fractional currency for re- demption is impossible; but let steps be taken for areturnto a specie basis, aud it will befound that Silver will take the plae@ Of fractional currency as rapidly as it can be suppited. WHEN WE MAY HAVE FRBE BANKING. When the premium on gold reaches a sufficiently low point, with the amount of Unite’ States notes to be igsned permanently within proper limits, and the Treasury so strengthened as to be able to re- deem them in coin om demand, it will then be safe to maugurate a system of tree banking, with such Provisions as to make compulsory redemp- tion of circulating uotes of banka in coin, or United States notes themselves, redeemabie and made equivalent te coin, as a measure preparatory to free banking, or for placing the government in a condition to redeem ite notes in coin at the earliest practicable moment. The rev- enues of the country should be increased so as to pay the current expenses, provide tor the singing fund required by law and aiso a surplus to be re- tained in the Treasury im gold. Tam nota be- lever in any artificial method of making paper money equal to coin when coin is not owned or held ready to redeem the promises to pay; for Paper money is nothing more than promises to psy, and is valuable exactly in proportion to tne amount of coin tnat it can be converted into. HOW THE GOVERNMENT M&Y GET GOLD, While coin is not used as @ circulating medium, or the currency of the country is not convertible into it at par, it becomes an article of commerce as much as any other product. Tne surplus will seek a forelgn market, a8 will any other surplus, The balance of trade has nothing to do with the question. The duties on imports, peing required in coin, create @ limited demand for gold, end about enough to satisfy that demand remains in the country. To increase this supply I see no way open but by the government hoarding througn the means above given, and possibly by requiring the national banks to ad, HE DISTRIGUTION.OF THE CURRENCY. It is claimed by taé”aévoentes of the measure herewith returned that there is an unequal distri- ‘ution of the banking capital of the country, I was disposed to , give great ;weight to tis view of the question at first, but, on reflection, it will be remembered that there stall remains $4,000,000 of authorized bank note cifculation, assigned to States having less than their quota, not yet taken. Jn addition to this, the States having leas than their quota of bank circulation have the option of $25,000,000 more to be taken from those States having more than their proportion, When this is all taken up, or when specie payments are fully restorsd, or are in rapid process of restoration, wiil be the time to consider the question of “more currency.” U. & GRANT. EXECUTIVE MANSION, April 22, 1874, WASHINGTON’S SURPRISE, WASHINGTON, April 22, 1874. At the meeting of the Cabinet yesterday the most part of the time was occupied in the discus. sion of affairs in Arkansas, and the subject of what was tobe done to remedy the present law. The condition of the State government was still under consideration, without conclusion having been reached up to about three o'clock, when the members of the Cabinet separated. It was not to take up the question as to What should be done on the Senate Finance bill, whetner it should be vetoed or approved, though it was currently given out bySenators well informed and holding intimate relations with the Cabinet that five of its members were tn favor of the Senate bill, but the President calied them together again to-day in order to arrive at some decision upon the Arkansas difficulties, This was @ special session, and hence attracted considerable attention, because it was assumed by the political diagnosticians that the Finance bill was to be acted upon, the necessity of a veto with its favor- ing argument to be weighed and examined into, Though this was the case, 80 far as public opinion went, yet no fixed impression was made that if one were agreed upon it would be sent into the Senate for some days to come. Senator Ferry, of Michigan, and one or two others, received a pretty direct intima- tion this morning from member of the Cabinet that a veto had been decided upon. So things ran along in the Senate to-day quietly until about a quarter after two o’clock. The usual announcement was made by the courtly and scrupulously neat Bas- sett, whose figure bas graced the Senate for over thirty years, and who, with his peculiar bow to the President of the Senate, and swinging for- ward of the mght hand, made the usual an- nouncement, “MESSAGE FROM THE PRESIDENT!” And thus the arrival of General Babcock, the President’s private secretary, was made known to the score or s0 Of drowsy Senators, At once all heads were anxiously turned with os sudden movement of interest and mingled expectation in the direction of where General Babcock stood at the head of the centre aisie, with the ominous message in alarge en- velope covering the much discussed Presidential veto, with an accompanying message, explaining at length the reasons for his action and the finan- cial views entertained by him as most salutary tor the present condition and future demands of the country. SCENE IN THE SENATE—READING THE MESSAGE, Tne package speedily passed to the desk of the President pro tempore of the Senate, when the reading of [t was promptly ordered, and every Sevator “had his ears intently” upon the purport of its words as they came irom the mouth of Major McDonald, Chief Cierk of the Senate, Hardly had this transpired when the report flew around like wildfire through the committee rooms, up and | Ola ky down stairs, and even into the refectory, where some Were quietly lunching and talking overjobs Present aud to come. The absentees rapidly came into the hall of the Senate, and almost every obair was #illed by its occu pant, but few remaining vacant. Prominent and noticeably among them, however, was that of Senator John Sherman, of Ohio, Chairman of the Senate Committee on Finance, to whom, had he been present, it would have been an hour of triumph and satisfaction, considering that at the last of the debate, which became so fierce and embittered, he was the one who threw out for the first time the gug- gestion of a Presidential veto as a panacea if everything else should fail, During the reading the male galleries recetved large accessions of those who frequent the lobby, and the rear of the Senate Chamber presented & goodly array of ‘members, who came over hastily from the House to see if indeed “the news were true.” All doubt being now at rest—and on no question recently nas so much of it prevailed—the all pervading sentiment seemed to be at first one of great sur- prise, but behind this sudden flush and glow there were variously the pale xed lines of concealed ire and resentiul spirit on the one hand, and on the otherfa smooth, contented complacency, relatively, a8 the expressions were scanned of those who objected to or approved the veto. SPEAKER BLAINE WAS PRESENT, and seemed suddenly thrown into an abetract and Pensive mood, as though forecasting what might be the renuits of the. mrore then ordinary event, and, as he balanced his slouched hat vpon his bent knee, hw face wore ® 100k of intelligent concern, behind which, in a kind of reverie, seemed to pass some philosophical refiec- tons as to the political effect of the President's Message, and one could not avoid the conviction that perchance he thought, “This makes one Rich- mond less im the field for the Presidential Succession. he was seated in Senator Bucking- ham’s chair, and near bim were Senators Bout- well, Howe and Edmunds, who evinced their pleas- ure in dignified but expressive composure and happiness. SRNATOR CARPENTER Janghed in hig usual jolly manner as he walked musingly to bia own seat on the floor, twitcnng now and then over his finger a piece of red tape. Senators Howe, Frelinghuysen and Conkling sat by one ancther forthe nonce, and smiling benignantly, but with great Senatorial decorum, ‘and occasionally glanced over misohievously under their brows in the direction of Senator Morton with a look Jor inguity, which seemed, to say, “How do you like that old fellow?” But the object of their gaze neither turned to the right mor the leit, bat with his usual Mixed pose, with his left clenched hand supporting Bis chin and with knit brows continued absorbed throughout the deciara- tions of the President, as they were conveyed by ‘whe Clerk’s reading. Senator Thurman could not Conceal his great surprise and rejoicing, as he walked over to the seat of Senator S2ott to speak to him sotto vocs, Bis usually grave, judicial face was wreathed in smiles, He appeared for the time being the happiest man in the Senate. He subsequently joined Senators Edmunds and Conkling mear the Speaker's desk, and the two prospective nominees tor the Presidency on opposite sides foined in with the jogical Vermonter in hearty roils of laughter and the shaking of thei adipose tissue in unrestrained merriment. Transfxed, grim, not a muscle mov- ing his olive complexion, Logan was slightly tinged With pallor as helooked on, and it was finally relieved by @ contemptuous cur! of the lip, and an indifferent nonchalant raising of the heavy black eyebrows was all that he deigned to signify the effect upon bim of what was transpiring in the Senate. Senator Merrimgn, the father of the bill thus con- signed to @ mortuary record, looked the most dis- appointed man jn the Senate, and an I) disguised look of provocation settled upon his features, as well as on those of most of the other Southern Senators, though, on the whole, they behaved with great sell-poise and savotre Jatre. LAID ON THE TABLE. Mr. CONKLING read irom the rules of the Senate as to the action upon the reception of a message from the Prestdent withholding his signature to a bill, and said.it might be supposed that under the rule the biM should be conaidered immediately. Sach had not deen the custom, however, and as Senators desired, no doubt, to’ see the:message in print, he thought it best to have it printed and laid over for consideration at an early day. It could not probably be disposed of this week, and, as Monday had already been set aside for enlogies ‘on the late Senator from Massacnusetts, he moved the measure be printed and that it lay on the table with the bill until some day next week. This was agreed to, AFTER THE EVENT. ® Nothing was talked of after the document was Tead in either body but the veto. The opinions and comments varied, of course, according to the party, sectional and personal characteristics of the individual. Mr. Conkling at once gave inti- mation that on Tuesday next, or whatever day the Veto Message shall be called up, he will enter the lists as the President’s champton, prepared to de- fend him against all comers. He will be reinforced probably by Mr. Edmunds, Mr. Sherman and Mr. Frelinghuysen. Governor Morton is the un- questioned leader of the inflation party. He is cool, wary and getermined. He did not to-day dis- close any of the “heat manifested by some of his- followers, and recognizes the honesty of the Presi- dent, but does not conecal his belief that a great mistake bas been committed, Messrs, Ferry and Logan are reported as being full of wrath and are Teady for ‘war to the knife.” “TWO STOOLS” AND A FALL. In the House the Western republicans are even more pronounced and indignant at the position in which they find themselves placed. Here they have gone on the record, and now they have either to eat their words or to oppose outright the administration, The probability is that most of them will endeavor to support the bill and the administration at the same time. Thus between two stools they will fall to the ground. They did not hesitate to declare to-day on the floor of the House their beliet that the re- publican party of the Northwest was broken up by reason of the veto. The inflation democrats of the Southern and Western States condemn the veto, and will at every opportunity vote to override it; but they console themselves with the belief that the administration 1s doomed by this act, They say that the im- poverished and debtor classes of the people are largely in the numerical majority, and that these Glasses will now hold President Grant to @ responsibility for refusing them the relief they need in the shape of additional currency, REJOICINGS OF THE HARD MONEY MEN. With the hard money democrats there is even greater joy over the event of the day. They take the same views of the impending disasters to the republican party, and are rejoiced that the country has escaped the increase of an irredeemable paper circulation. With the Eastern and hard money republicans there ia great rejoicing to-night and cordial praises of the President. They will stand by him now with undoubted confidence, and claim that the re- sult of the veto will be a largely increased popu- larity for the administration. THE PRESIDERT’S STRENGTH. ‘The strong probability is that when the Senate bill comes up again to be voted on, next week, there will be found several charges against it. Messrs. Cameron, Clayton, Dorsey, West and others, who sustained this bill some weeks ago, are now regarded as not atall likely to array them- themselves against President Grant on sach a serious question. At any rate, five is the utmost majority to be expe:ted for the pill, and as two- thirds are requisite nothing can be done, ANTI-INFLATION REINFORCED. Senator Anthony, who occupied the Vice Presi- denw’s chair when the Senate Finance bill passed the Senate, ia of opinion that the issue having been made by the President’s veto, which he heartily sustains, it will be found dim cult to get any measure threugh the Senate which is not in accord with the views expressed by the President in nis veto mes- sage. Alluaing to the final vote on the passage of the Merrimon substitute, he sa, “Ab that time Senator Gibson wae absent, who would have Flanagan was supposing the latter's absence was to be bat temporary, and that he would in the futere vote against any mieasure of expansion, while | Senstor Washbura, elect from Massachusetts, | would vote against any and every inflacton meas- ure, There are three votes against the five Majority by which the Dill originally passed the Senate. Only one more is re- quired to make @ tic, which, im the absence of the Vice President, would defeat any measure, as & tle vote without the casting vote of the Vice Presi- dent goes for nought. You see, therefore, that the delay has brought every Senator to his post, and whatever may be the action of the House, no veto can be crushed in the Senate by the requisite two-thirds vote, EFFECT OF THE RVEXT ON THE PARTY ORGANIZA- ON. The opinion is universal among the democrats that the republican party is shipwrecked by tha veto, and the apprehension of a split is widely en- tertained among the repuplicans thempelves. There is every reason, too, for believing that the Senate discussion of this veto message will be pro- tracted, bitterand exciting, and that the conse quences to the dominant party will be as disas- trous a8 was the disruption of the democratic party om the slavery question. As Tyler's veto and Clay’s bank measures lost the Presidential campaign of 1844 to the whig party, so it is gener- ally, believed that Grant’s veto of this Currency bill will ental defeat upon the republican party in 1876; but that, unlike the whig party, it will never rally from the shock. WHAT WILL THE SENATE DO WITH THE BILL? The question on the resumption of the considera- tion of the Carrency bili in the Senate will be:— “Shalt the bill pass notwithstanding the Presi- dent’s objections?” On taking the vote, if sup- ported by less than two-thirds, the bill fails, and againet the veto it will haraly receive a majority. But before the vote is taken there will be @ ciscus- sion of the whole subject in all tts bearings, SENATOR MORTON'S VIEWS, Senator Morton, the active leader of the majority which carried the bill through, is of the opinion that there will be an animated and protracted de- bate, and shat of course the bill will be lost; but he thinks that this is only the beginning of this con- troversy of the East against the West and the South. He thinks the President has acted con- selentiously im this veto, but that upon one point, at least, ne has been misled, for there are not $4,000,000 of banking circulation upon which Indiana or Illinois can draw, as he suggests in his Message. THE REPUBLICAN PARTY SHAKEN. Upon being asked if this veto would not break up the republicag party into two sectional camps Mr. Morton replied :—“No, sir; the party may be shaken @ little, but it will not be broken. It is no more divided upon this currency question than the democratic party, and our democratic friends are very mach mistaken if they think that our lines are more endangered than theirs by differences of opinion on the currency or bauking or on any of these financial questions, Nevertheless, in the end the just demands of the West and the Soath for more currency will prevail, for this is only the beginning of this conflict,” THR HAPPIEST MAN IN CONGRESS, Senator Conkling 1s, perhaps, the happiest man in Congress, He is confident that henceforward the honest financial policy of the President will prevail, and tiat the present session will not be profonged in conseqnence of this veto, because it Snlightenshe two Houses as to the bounds beyond which they omnnot safely pass, and that altogether this veto'is @ good thing for the country and will strengthen the President at home and abroad, : PISRUPTION AND DISASTER, A democratic senator, on the other hand, whosé name your correspondent is not at linerty to give, says that this veto financially is a mistake, while poiltically it is the salvation of the country in breakimg up this demoralized republican party. There wilt be “music in the air” irom the Weat and Sough before ten days are over, and your re- publican party, sir, on this sectional question of the currency, will be broken to pieces, as was the democratic party on the slavery question. REMARKABLE POPULAR EXPRESSION. ‘The hotel lobbies and vestibules were the cen- tres of interest this evening. Knots of excitea members, place hunters, lobbyists, lawyers,» comtractors and claimants, and tné hungry Micawbers generally found about the Capi- tol, were to be seen discassing the Veto Message of the President, expressing opinions pro and con of leading men and the possible effects on parties. The stately Arlington was almost serenely undis- turbed, as it is the headquarters of those who have ‘Won this game. Willerd’s was not much rufied, being a species of debatable ground between both parties. COMPTROLLER KNOX ARGUMENTATIVELY ATTACKED. But tne Ebbitt, which from several causes has become the favorite camping ground of the West- ern and Southern men, was the scene of animated talk and at least one exelting debate, the victim in which was the Comptroller of the Currency, Mr. John Jay Knox, who evidently strolled in to feel the pulse of the public and learn popular opinion. WILFUL UNTRUTH TO THE PRESIDENT. Mr. Knox is charged by the inflationists with 8 species of doubie dealing throughout the whole discussion, and the reference made by the Presi- dent to a balance of currency, $4,000,000 in amount, being untaken and now lying in the control of the Treagury, is attrinuted directly to Mr.. Knox as guthority therefor. He had been openly de- nounced on the floors of the House and Senate, and now in the conversation of Senators and Repre- sentatives, as having misstated the facts to the President. No sooner had Mr. Knox fairly enterea the roomy vestibule of the Ebbitt, in which there conld not have been fewer than 200 persons loung- ing about, than he was met by General Rusk, of Wisconsin, chairman of the House Penstons Com- mittee and a pronounced inflationist, and Repre- sentative Clinton L, Mertiam, of the Twenty-first New York district, a moderate advocate of free banking and the real author of the Banking bill now belore the Senate, who at once entered into a warm conversation with the Confptroiler. Mr. Merriam, in quite an excited manner, charged Mr. Knox with deliberate misstatement in regafd to the $4,000,000 of currency alleged to be uncalled for, Mr. Merriam asserted that no such amount was at the Comptroller’s disposal, and asked it anybody desiring to establish a bank in the South or West could obtain it, if the bonds were brought and offered for deposit. Mr. Knox responded in the negative and explained that what was meant was that the amount named had not been issued. It was, however, aesigned and called for, though the bonds were not put up, or some other cause prevented its being issued. In a few minutes the loungers were gathered around the gentlemen, THE LIE INDIRRCT. Mr. Merriam characterized Mr. Knox's state- ment a8 ap evasion. General Rusk spoke of it as an equiyocation, and, under the infiiction, the Comptrolier apparently lost his temper, and in reply to @ remark of Mr. Merriam’s that he had defended Mr. Kn@x on the floor of the House, but would not doit agai) the Comptroiler replied in 9 loud and excited voice :— “Well, sir, you @fa@ it of yourown motion and because you thougnt it just. I never asked you or an) other man to defend me, and | never will, I can do it myself.” KNOX REVILED BY THE STATESMEN AND THE MULtI- From the first of the wardy melée it was evident that the audience and its sympathies were against Mr. Knox, At least a dozen well known Con- gresamen were present. General Jonn A. Logan came up at this time and took a free lance in the lists, Mr. Merriam withdrawing for the Knight of the Black Plume. Logan was coot and bitter; Knox was worried and heated. The Senator was evidently fresh irom an examination of the currency report, and fired at the head of the devoted “civil servant’ volleys of figures which he aMrmed must be only figurative, not facts, if the statement made tn the veto that so much currency was uncalled tor was to be taken as signifying what it said, Mr. Knox, in defending himself, said that there was @ portion of this currency residue assigned to [ilinois, and unissued or uncalled for. This Logan at once de- nied, and cited the iast report as a proof | Le OH), thia, severe, and only verge of courtesy. Mr. epcomfortabie. Logas chargod misin {c the President. his allusions to the in@ation point, and there were justona by the infationists present to the'inaccuracy of the statement, GRANT AMD MIS PARTY aw If this scene and yh Se spoglie crowd— quite @ representative one tn comspesttion—is to be just within the Koox was evidently directly with was sarcastic in | Fegarded as any evidence of tue feeling aroused, it1s quite certain that the veto will cause 8 division in edmimistration ranks. Grant was frequentiy referred to as ‘Tylerizing.” KNOX CONSOLES BIMSRLF.~ Alter his controversy at the Bbbitt House with Logan e¢ a. Comptrotier Knox made diligent and successful inqutties were pe might see and read the fateful message. He found ana read it, and whtie readtug passed each silken sheet of manifold across the tevle to the distinguished anti-Butier Representative (rom Connecticut, The Comp- troller, atil! heated alter his recent attack and con- troversy at the hands of the great inflationist, eagerly scanned the pages of the veto, and broke forth in exclamations of satisfaction. Said he, “Logan said I bad told the President that I baa still remaining m my vaults $4,000,000 of unissued currency, afd then taked about the Cook County Bank. I never told the President a word of the kind, but I would if he had honored me by asking about the Cook County Bank. I tried hard for a long time after I became Comptrolior to save them two or tbree hundred thousand, and it was only when they were no longer entitled to the issue, and it Was assigned to another Stace that they wanted it. HAWLEY LIKEWISE CONSOLED AND EXALTED. General Hewiey, during this speech trom the great chieftain of the national banks, sat moodily and anxtousiy watting the end of these re- marks, and then spake these words:—‘This is the greatest thing in this country since Appomattox Court House. Grant is a great man. He isa statesman. Every time that all parties, friends as well aa joes, combine to find fault with bim he does some common sense thing that aston- shes the whole country, Tnis message iq the best thing since Appomattox Court House. Look at this (holding up the page containing the first part of the message). It is & complete and terse summary of the first part of my speech on thia.sub- Ject.” Knox gazed speechiess at the General, and they both passed out, meditating on their own Greatness, SENTIMENTS OF THE PACIFIC COAST SENATORS. The Senators from the Pacific coast, excepting Senator Mitchell, are confident that the President has saved the republican party from destruction, They believe that the principles advocated by them must necessarily win sooner or iaser, and there- fore that the party which continues to advocate them is certain to achieve continual success. Taey think that if President Grant bad fled io this re- spect, the democrats would have seized the oppor- tunity with certainty of fimai success. They have been untiring in their efforts to secure the victory, which they claim in part to be theirs. Senator Sar- Gent's significant speech at the time of the passage of the bill in the Senate, when he deciare: his iaten- tion to abandon any party which would sanction national dishonor, has been repeatedly spoken of, aud his calmness when the result was announced is construed to indicate that he did not make his significant speech without some intimation of the President’s opinions, Senator Hayer, who ig a democrat, being a new member, has little to say, but appears gratificd on general principies. Sena- tor Jones is absent. Senavor Stewart reftects only the common aud united interest of the Pacific Coast, which is ‘and has been uncompromisingly for @ speedy return to specie payment. These Pa- cific Coast Senators, however, are not yet pre- pared to aay whether they think that the veto shoald be sastained strictly as a party measure. Their opinions are based more on the peculiar wants and desires of a local constituency than on national grounds, SENATOR SPRAGUE ON THE VETO AS A STATE PAPER. Senator Sprague, who voted for the bill, con- siders the President's veto message as admirable @ State paper as ever. emanated from the pen of Andrew Johnson, and has more of the elemens of Teconstruction in It than was embodied in any of President Jonson's famous vetoes, GENERAL OPINION IN THE HOUSE, { On the democratic side of the House the news ‘was received with much surprise, but with dik ferent views, according to joeality. The Western and Southern democrats are united in the opinton thaf the veto of the bill will send an almost solid democratic delegation to the next Con- gress, They did not all have faith in the beneficial results of the bill to their people, but seem to think that the continuance of hard times will be attributed to its veto, and that the great body of thé people west of the Alleghanies and south of the Potomac will indicate their re- sentment to what they consider the influence of Wall street at the next election. Many of the repuolican members fiom the West and South talk in a similar strain. Some of those from Indi- ana, Iinots,- Michigan and Wisconsin seem to think they have no longer a party, but that it is only a question of money against the people. Already the proposition is made to repeal the ten per cent tax on the State banks, and it will be follgwed up, they say, by a further propusition to paythe bonds in greenbacks, and thus rid the country of the enormous burden it bears in the in- terest of their holders. Both democrats and re- publicans from the West and South are of opinion that the representatives of the bankers and brokers who were here to advocate the veto were influenced more than anything else by the fact that the bill produced contraction in New York, but left more money in the banks out- side, They say the time has passed for New York to rule the finances of the country, and that the West ana South are about to assert them- selves. Such is their general talk, and the next Congress will probably show that Grant has ac- complished by his veto what otherwise would not have been accomplished—a basis for a combina- ties of all the elements of opposition. THE LIBERALS PLEASED, General Banning, of Cincinnati, who by common consent represents the liberal republican element in the House, his admission to the republican caucus at the beginning of the session hav- ing been made & test qnestion, says that the President's veto will accomplish what the liberal republican movement fajied to do; and that is, it wiil divide the orthodox party in twain, and give to the people such an issue in the next Congressional campaign as will compel them to ignore party lines and square themselves on this financial matter. THE TALK OF THE LOUNGERS. Tn the lobbies of the Capitol, in the hotels, on the streets, everywhere, the veto has been this afternoon the topic ol conversation, and the opin- fons expressed are of all shades of coloring. ‘“Gen- eral Jackson lives again,” says one. “No,” says another, “It is Captain Tyler, The money power of Wall street kas settled the question. The money changers and bankers of Philadelphia and New York have proved stronger with Grant than the will of the people. He goes with the money lenders and that ends him.” “No, sir,” puts in a champion of the yeto, sit makes him. The coun- try will stand by him. The honor of the country is redeemed ; our national credit is now Jounded on a rock, and Grant is the coming man.” INFLATIONIST THREATS, Again you may hear the opinion that Grant has been bought and Ben Butler has been sold; that the inflationists upon this veto will make “Rome how!;’’ tnat facts will come out that will wake up the country, and that Grant is done for. Such are among the expressions heard on every side, The excitement runs high here. There is no prospect of its abatement to the end of the session, and the session, itis thought by some old campaigners, may be now extended far into July. There was great indignation among the republicans against President Johnson for his vetoes, but it was not greater than the indignation expressed against General Grant this day by his political opponents, “He is worse than Andy Johnson,” say some of the enraged inflationists of the West and the South, “but wo are not done with nim yet.” ‘The HERALD Burean meantime has been visited by numeruus supporters of the veto from all sections, bringing Hits language ail through was | their congratulations to the ArRiLp for Victory ior which it bas struc ged. THE EFFECT IN THE CITY. When the news of President Grant? Senatorial infistion bill was Fecelved pe ‘aoa yesterduy alternoon there was but one feeling, of ‘Universal s@tisfaction, at the action of the Chief Magistrate Of the nation; and so general was this feeling MMH NOt & word of biame could be heara amid the general joy. Crowds gathered around ail the bulletins of the evening papers, wiere the ews of the veto was printed in large letters, ana gazed a& them with that peculiar vacancy of crowds who see more in what they are eyein; than the mere characters before them. it wag clear to gil that the great bugbear of the nation was gone and President Grant had done one of the most popular acts of his Mfetime, and certamly the most popular etvil act of hie administration. But while the veto was looked upon with pleasure. Some surprise was expressed that it bad remained in abeyance for so many days since Congress passed the obnoxious bill, witle the press of almost the entire country and every financial man of promin- ence had put itself and Nimself on record againat it and urged the President todo what he had as last done. i The veto of President Grant did not reach the city until! a late hour in the afternoon, an@ reporters of the HmkaLD were immediately @ispatebed to ascertain the views of the promi- nent beakers and foancial mon of Now York. upon the gréat question of the day. That many of these were not seen was owing to the lateness of the bour, when banking business was ended, and the gentlemen mentioned had returned to thelr Lares and Penstes and were even beyond the reacn of the pleasant and ubiquitous inter- viewer. Enough expressions of opinion have been obtained, however, to show that there is but one opinion among bankers and merchants con- cerning the fallacy of inflation—such men as Messra, John J. Cisco, Jonn Q Jones, Seligman, George Opdyke, Denny, Fisk and Camp, 4c. Only mm one case a prominent banker departs trom the general rule of these opinions and considers thas no matter what amount of currency the govern- ment might print the people would take no more than they wanted. The sophistry of even so erudite an opinion as this, however, seems to be abundantly proved by the others, s0 well known @ man as Mr. Cisco saying that *‘infation is the first step to repudiation.” Altogether it is ielt that the President has risen to the dignity of the situation, and nas saved tile country from a peril hardly less than that which he averted nine years ago; for if, as some one said, the revolutions of peace are as dangerous as those of war, then the country may congratulate itself that the man at the helm proved true to his trust, At the hotels last evening the excitement and im terest over the veto were intense, and the same universal feeling of satistaction existed. , At the Fifth Avenue Hotel. The bankers and brokers and id omne gsnue who, in the evenings of their pecuniary trials and tribulations, as well as of their triaumpns, make the Fifth Avenue Hotel barroom and reading room and vestibule their neadquartera were out in goodly force last night. To aay that there were to be found among them all many sad and forlorn countenances would be bat te!ling half the story. Those who did look chop-falien looked so toa de gree that would have brought scalding tears tothe eyes of an alligator, had one of those interesting creatures been 80 happy as to have been present during the evening’s excitement. And st was quite platn to any one who ww at all famillar with the faces of the big and little men that nervously fit by one in Wall street, in one office and out of another, during business hours, that the great majority of those whose inflation ardor nad been dampened by the President's veto were of the gmail fry order of broker and banker. There were but few of THE REAL PROMINENT MEN OF THS STREET on hand during the evening, and those who were took good care to keep away from the general crowd aud to wait about only till such time as they had Jearnea what the “indications” pointed to for the morrow’s work. From as early an hour as seven o’cloek chairs'in the reading room and bar- room were at & premium, and “standing room only” was jeft ior the lave comers, Even the sofas, that are placardea, “These seats for nati men,” were eagerly seized upon and the time to the exclusion almost of the hall men themselves. The great topic of discus sion was, of course, the veto and the proba- ble consequences to the finance of the country. As has already been mentioned, the small fry manifested considerable disgust, and, judging from the way they spoke of the President and his |. knowledge of dnances, they will from this time forward, until they are anie to geteven in some corner in the market for their present disappoint- ments, consider General Grant as among that very large class of men who do not always swear by THR FAITH OF CURBSTONE MONKEY MAKERS, and who, as a result, do everything in a way that is repugnant to curbstoneism principles, ‘The fact of is, it was evident that a great many of the sore heads bad attempted to discount the chances of the Four Hundred Million bill be- coming a law Jor weeks past, and had finally come to the conclusion that the President would sign it, Once convinced in their own minds of this fact, (?) they went about their litule pecuniary jobs accord> ingly and came, at least the more reckless of them, togrief in the bargains they had made and the speculations that they had entered into. Indeed, the infationists of big and smal) iry order, whose plaints last evening were s consolation, doubtless, to one another, had depended, apparently, alto- gether on “points” that had been sold to them by parties in Washington, which points bade them be of good cheer and go along on the even tenor of their usual dealings. Donbtiess if they siould be in- vited to-morrow by public advertisement, as a few misled brokers were some years ago, to a meeting of gentlemen who might be anxious to obtain “points” as to why they did not nave everything their own way they would attend in a body. “Why,” said one of them to the reporter, “l was never so sure of a thing ip my life as | was thas 7 biped Bde pointe - he Dill. Evel iy ini ge EE | the same those wno sgreed with me as to the probability of his signing 1 were strong hard money men. what is more, I tae very means finding out what the President would do; least, I thought I had—end @ good little sum it cost me. Bat I must say this much, lhave been bediy sold out, and will not depend so much on pom hervaiter that are furnished exclusively by ae prot ir hcte't vases pty 0 who Thembelves in the White House and its branches,”” ord Said he then— and the conversation took fee two days alter the Four Hundred Million pill both houses of Congress> -“I can’t make out what the HerRaLD is driving at. Ihave taken itfor twenty-five — and nave always found it to be on the yo in every question. The great mass of the pe of this country want an increase of the volume of become a Ory thal he thought about the “law” now, at first was answered rather tartly that hé had “better go tor information elsewhere.” how- ever, he toned down good naturedly soon after. Ward and remarked :—"I have not vy feo in the least as to the necessity of what some people cali inflation, but what some men, who pretend to know some’ about finances, looked ‘upon as no inflation at all, but a simple increase of the currency demanded by x THE NEORSSITIES OF THR COUNTRY. I pa think that the President has made s great mistake. elo 1s nearer to the people than the Senate) by such an immense majority, and the members who voted for it not to know that their constituents wanted them to do just as they did. Trade wanted some sudden stimuins, and the signing of the bill by the Prestaent would hav aes it just what ‘as wanted, The country we not have been a sufferer im the long rum aud the present uncer- tainty of affairs would have been di In exact opposition to these views, the President of lai banks remarked to four a othe po bag bai 4 i) s had & t 0D the President as @ aan common sense, and dur- dng all the talk that has been induiged in pro and con by financiers throughout the country ot late, and tie opinion that nad become fi: im the CONTINUED ON NINTH PAGE,