Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-12-17
The Presidents Message.
To the Senate and House Of Representatives:
THE BUSINESS PRosTRATIoN

as to the causes for this prostration might be in
dulged IN without profit, because many the
cries would be advanced as there would be indie
pendent writers who should express their own
views upon the subject. without indulging in
therefore, / will call your attention only TO
the fact and to some questions as to
which it would seem there should be no disa-
greement. During this prOstration two essential
elements of prosperity have been most abundant
labor and capital Both have been largely IN
employed Where security has been undOubted
capital has been attainable at very moderate
rates. Where labor has been wanted it has been
found in abundance, at cheap rates compared
with what of the neCessaries and comforts Of life
could be purchased with the wages demanded.
Two great elements Of prosperity. therefore,
have not been denied US; a third might
be added Our soil and climate are IN
egualed within the limits of anv contigu-
GUS territory under one nationality for its vari-
cites of products 10 feed and cIothe people and
in the amount of surplus to spare to feed less ia
vOred people Therefore, with these facts in
view, il seems to me that wise craftsmanship at
this session OF Congress would dictate-lgnOring
the past distributing IN proper channels these
great elements of prosperity to any people. Debt
abroad Is the only element that can, with always
sound currency, enter into our affairs to cause
any continued depression in the industries and
prosperity OF our people.
THE CURRENCY.
A great conflict for national existence made
necessary for temporary purposes the raising of
large sums of money from whatever source at
tainable. 1t was made necessary in the wisdom
of Congress, and l do not doubt their wisdom in
the premises regarding the necessity the times,
TO devise system of national currency, which it
is proved to be impossible to keep on d par with
the recognized currency of the civilized world.
This begot spirit OF speculation, involving an
extravaganza and luxury not required for the
happiness or prosperity of people, and invOlv
ing, both directly and indirectly, foreign
Indebtedness. The currency, being of a fuctu-
ating value and unsafe to hold for legitimate
transactions requiring money became q subject
of speculation in itself These two causes,
however, have involved US in a foreign
Indebtedness contracted in good faith by the
borrower and the lender, which should be paid in
coin and according to the bond agreed upon when
the debt was cOntraCted-gold or its equivalent.
The good faith of the Government can
not be violated toward its creditors at
the national disgrace. Our commerce
should be encouraged; American ship
building and carrying capacity increased; for
eign markets sought for products of the soil and
manufactures, to the end that we may be able to
pay these debts Where market can be created
for the sale of our products, either of
the soil, the mine or the mandatory
q new means is discovered of utilizing
idle capital and labor to the advantage of the
whole people; but in my judgment the first
step toward accomplishing this object is
to secure currency good wherever civ
iization reigns-One which, if it becomes
superintendent with one people, will find mar
ket with some Other-a currency which has as its
basis the labor necessary to produce it, which
will give il value. Gold and silver now the
recognized medium of exchange the civilized
world over, and to this we should return with the
least practicable delay.
In view Of the pledges ofthe American Congress
when present legal tender system adopt
&C and the debt contracted, there should be
no delay, certainly no unnecessary delay, in fix
ing by legislation method by which we will re-
turn TO specie. To the accomplishment of this
end invite your special attention. l believe
firmly that there can be no prosperous and per
manent revival OF business and the industries nm
til policy is adopted, with legislation to carry it
out, looking to a return to specie basis. 1t is
easy to conceive that the debtor and speculative
classes may think 1t of value to make a So
called money abundant until they can throw
poniOn of their burdens upon others; but even
these, | believe. would be disappointed by the
result II a course should be pursued which will
keep in doubt the value OF the legal-tender me-
dunn of exchange. revival of the productive
industries IL needed by all classes, and by none
more than the holders of property, of whatever
sort, with debts to liquidate from the realization
upon its sales But, admitting that the two
classes of citizens referred to are to be benefit
ed by expansion, would it be honest to give it?
Would not the general loss be too great to
justify such relief Would it not be just
as honest and prudent to authorize each
debtor to issue his own lcgal-tenders to
the extent of his liabilities as to do this?
Would it not be safer, for fear of Over-issues
by INSCRIPTIONS creditors, to say that all
debts and obligations are ObltCrated in the
United States, and now we commence anew each
possessing all he has at the time free from in
CulnDranceF These propositions are too absurd
to be entertained for moment by thinking peo-
pie. Every delay IN the preparation for final re
sumption partakes of this dishonesty, and
Is only less in degree the hope
Is held out that 9 convenient season will
at last arrive for the good work of
redeemlng our pledges to commence. 1t will
never come, in my opinion, except by the posi-
tive action of Congress or by national disasters
which will destroy for time at least the credit
OF individuals and the State at large. l believe it
Is in the power of Congress at this session to
devise such legislation as will renew conf
denCe, all the industries, start us on a ca
reer of prosperity to last for many years. and to
save the credit of the nation and of the people
Steps toward the return to specie basis are the
great requisites to this devOutly tO-be-sought-fOr
end. There are other points l may touch upon
hereafter.
A nation dealing in currency below that of
specie IN value labOrs under two great disadvan-
tages: First, having no for the worlds ac-
knowedged Medium of exchange gold and sill
yer, these are driven out of the country because
there is no demand for their use; second.
the medium OF exchange in use being of
huCtuating value, for, after all, il is
only worth Just what it will purchase of gold and
silver, metals having an intrinsic value just in
proportion to the honest laborit takes to produce
them, large margin must be allowed for profit
by the manufacturer and producer 1t is months
from the date of production to the date of reaiza-
ton Interest upon capital must be charged and
risk Of huctuation in the value of that which is
to be received in payment added; hence high
prices act as 4 protection to the foreign pro
Queer, who receives nothing in exchange for the
product Of his skill and labor except a currency
good at stable value the world over.
II seems to me that nothing is clearer than that
the greater part of the burden of existing pros
tratIon ioI the want of sound financial system
falls upon the workingman, who must after all
produce the wealth, and the salaried man who
superintends and conducts business. The bur
OF employment and by the decreased purchasing
power OF their salaries. 1t is the duty of Con-
gress to devise the method of correcting the evils
which are acknowledged to exist, and not mine:
hut Will venture to suggest two or three things
which seem to me as absolutely necessary
TO return to specie payments-the first
great requisite in return to prosperity.
The legal-tender clause the law aT-
thorIzIng the issue of currency nv
the National Government should be repealed to
take effect ~ to all contracts entered into after
DAY liked In The repeating act. not to apply how
ever, TO payments of salaries by the Govern
ment or for other expenses now Uroyid
ed by law to be paid in currency. In the
interval pending between the repeal and final
resumption, provision should be made by which
the Secretary of the Treasury can obtain gold as
II may become necessary from time to time from
the date when specie resumption commences
70 this might and should be added revenue suf
hclently IN excess of expenses to insure an aeon
mutation OF gold in the Treasury to sustain re-
oemption.
recommend this subject to your careful con-
slaeratlon believing that favorable solution is
attalhable and that if reached by this Congress
tht present and future generations will ever
SLatSt9iIy remelnber it as their deliverer from
thIaIluoIn OF evil and disgrace. With resumption
!Ite oanlihihg may be authorized with safety Civ
iHS luIl protection to bill-holders, which thew
nav not under the existing laws. Indeed, I
NouI9 regard free banking essential. 1t
would give proper elasticity to the currency AS
more currency should be REQUIRED for the franssc
ton OF legitimate business new banks would
would wind up their bn sum p 2ShSS
Ii found there was sunara hI,darca Of