Connecticut western news., 1874-12-18
THE PRESIDENTS MESSAGE.
What the Chief Executive has to Say to hc American Congress and tho People.


 hc American Congress and tho People.
 CONDITION OF THE CONTEMPORARIES.
 Since the convening of Congress one year ago the nation has undergone 8 prostration in business and industries such as has not been witnessed with us for many years. Specula- ton as to the causes for this prostration might be indulged in without profit, because as many theories would be advanced as there would be independent writers. Without indulging in theories as to the cause of this prostration, therefore will call your attention only to the fact, and some questions as to which it would seem there should be no disagreement. Dur ing this prostration, two essential elements Of prosperity have been most standardization and capital Both have been largely unem- p1oyed. 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 com pared with what necessaries and comforts of life could be purchased with the wages de- manded.
 Two great clements of prosperity therefore, have not been denied us. A third might be added. Our soil and climate are unequaled within the limits of any contiguous territory ducts to feed and clothe 6 people, and in the amount Of surplus to spare to feed less favor ed peoples. Therefore, with these facts in view, it seems to me that wise statesmanship at this session of Congress would dictate legislation ignoring the past, directing 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. A great conflict for national existence made necessary for tenn porary purposes the raising of large sums of money rom whatever source attainable.
 ThJs begat spirit of speculation, involving an extravaganza and luxury not required for the happiness or prosperity of people, and involving both directly and indirectly foreign indebtedness. The currency being of t1uctua- ting value, and therefore unsafe to hold for legitimate transactions requiring money, be- came subject of speculation in itself. These two causes, however, have involved us in for eign indebtedness contracted in good faith by borrowers and lender, which should be paid in coin and according to the bond agreed upon when the debt was contracted-gold or it's equivalent.
 The good faith of the government cannot be violated toward creditors without national dis grace. But our commerce should be encour- aged, American shipbuilding and carrying ca pacity increased, foreign markets sought for products of the Roil and manufactures, to the end that VIC may be able to pay these debts. Where 8 new market can be created for the sale of products either of the soil, the mine, or manufactory, new means is discovered of utilizing our idle capital and labor to the ad- vantage of the whole people. But in my judg- ment, the first step toward accomplishing this object Is to secure currency good wherever civilization reigns, one which, if 1t becomes euperabundant with one people, will find a market with some other, & currency winch has as it's basis the labor necessary to produce it, which will give to 1t it's value. Gold and sil- yer are now the recognized mediums of eX- change the civilized world over, and to this we should return with the least practicable delay. In view of the pledges of the American Con- gress when our present legal tender system was adopted and debt contracted there should be no delay, certainly no unnecessary delay. in fixing by legislation method by which we will return to specie payments. To the accom- plishment of this end l invite your special at tention. I believe firmly that there can be no prosperous and permanent revival of business and industries until & policy is adopted with legislation to carry 1t out looking to return to specie basis. It is easy to conceive that the debtor and speculative classes may think 1t of value to them to make so-called money abundant until they can throw & portion of their burdens upon others.
 But even these, believe, would be disap- pointed In the result If course should be pur- sued which will keep in doubt the value of the legal tender medium of exchange-a revival of productive industries needed by all classes and by none more than the holders of property of whatever sort, with debts to liquidate from realization upon it's sales. But admitting that these two classes of citizens are to be bene- hted by expansion, would It be honest to give it? Would not the general loss be too great to justify such belief2 Would it not be just as honest and prudent to authorize each debtor to issue his own legal tender to the ex- tent of his liabilities Than to do this would 1t not be safer, for fear of overissues by ur- scrupulous creditors, to say that all debt obl- gations are obliterated in the United States, and now we commence anew, each possessing all he has at the time free from all encum- brance?
 These propositions are too absurd to be en- tertaiued for moment by thinking or honest people. Yet every delay in preparation for final resumption partakes of this dishonesty, and is only less in degree as the hope is held out that & convenient season will st last arrive for the good work of redee1ning our pleages to commerce.
 It will never come, in my opinion, except by positive action of Congress or by national dis asters which will destroy, for 8 time at least, the credit of the individual and the State at large. A sound currency might be reached by total bankruptcy and discredit of the in- tegrity of the nation and of individuals. I be- Heve 1t is in the power of Congress, at this session, to devise such legislation as will renew confidence, revive all the industries, start Us on career of prosperity to last for many years, and to save the credit of the nation and of the people. Steps toward the return to 8 specie basis are the great requisites to this de- voutly to be sought for end. There are others WHICH Lnay LOuCQ upon leroa1Sof. A QatlOD dealing ln currency below that of specie in value labors under two great disadvantages:
 First, having no use for the worlds acknowl- edged mediums of exchange gold and silver These are driven out of the country because there is no demand for their use. Second, the medium of exchange in use being of 8 tluctuating value, after all is only worth just what it will purchase of gold and silver, metals having an intrinsic value just in pro- portion to the honest labor it takes to pro- duce them. A larger margin must be allowed for profit by the manufacturer and producer. It is months from the sale of production to the date of realization. Interest upon capital must be charged and risk of fluctuations ill the value of that which is to be received in payment added. Hence high prices act az protection to the foreign producer, who re- celves nothing in exchange for the product ot his skill and labor except & currency, good at 6 stable value the world over. It seems to me me that nothing is clearer than that the greater part Of burden of existing prostration for the want of sound financial system falls upon the working man, who must, after all produce the wealth, and the salaried man, who superin. tends and conducts business. The burder falls upon them in two ways-by the depriva ton of employment, and by the decreased purchasing power of their salaries.
 1t IS the duty of Congress to devise the method of correcting the evils which are ac knowledged to exist, and not mine. But vii venture to suggest two or three things which seem to me as absolutely necessary to return to specie payment-the first great requisite 1T 8 return to prosperity. The legal tender clause to the law authorizing the issue of currency bJ the national government should be repealed to take effect as to all contracts entered into after day fixed in the repeating act, not tc apply, however, to payments of salaries by government or for other expenditures now pro vided by law to be paid ill currency in the in terval pending between repeal and final re sumption. Provision should be made b, which the Secretary of tho Treasury can obtail gold as it may become necessary from time tC time from the date when specie resumption commences. To this might and should be added a revenue sufficiently in excess of expenses t, to sustain redemption. recommend this sub ject to your careful consideration, believin. that solution is attainable, and that if reach ed by this Congress, the present and futur