as to pay
current expenses, provide for the sinking fund required by law, and also
a surplus to be retained in the Treasury in gold.

I am not a believer in any artificial method of making paper money equal
to coin when the coin is not owned or held ready to redeem the promises
to pay, for paper money is nothing more than promises to pay, and is
valuable exactly in proportion to the amount of coin that it can be
converted into. While coin is not used as a 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. The surplus will seek
a foreign market as will any other surplus. The balance of trade has
nothing to do with the question. Duties on imports being required in
coin creates a limited demand for gold. About enough to satisfy that
demand remains in the country. To increase this supply I see no way open
but by the Government hoarding through the means above given, and
possibly by requiring the national banks to aid.

It is claimed by the advocates of the measure herewith returned that
there is an unequal distribution of the banking capital of the country.
I was disposed to give great weight to this view of the question at
first, but on reflection it will be remembered that there still remains
$4,000,000 of authorized bank-note circulation assigned to States having
less than their quota not yet taken. In addition to this the States
having less than their quota of bank circulation have the option of
twenty-five millions more to be taken from those States having more than
their proportion. When this is all taken up, or when specie payments are
fully restored or are in rapid process of restoration, will be the time
to consider the question of "more currency."

U.S. GRANT.

EXECUTIVE MANSION, _Washington, May 12, 1874_.

_To the House of Representatives_:

I return herewith without my signature House bill No. 1331, entitled
"An act for the relief of Joab Spencer and James R. Mead for supplies
furnished the Kansas tribe of Indians." I withheld my approval of said
bill for reasons which satisfy me the claim should not be allowed for
the entire amount stated in the bill, and which are set forth in the
letter of the Secretary of the Interior of the 7th instant, a copy of
which, with the accompanying papers, is herewith transmitted.

U.S. GRANT.

DEPARTMENT OF THE INTERIOR,

_Washington, D.C., May 7, 1874_.

The