Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1874-12-12
PRESIDENTS MESSAGE.
Ii the Senate and Ho,,as Of Representatives.


10 the Senate and Hous Of Representatives
Since the converting of Congress one year
ago the Nation has undergone prostitution
in business and industries such a. has not
been witnessed with MS for many years. Spec.
ulation as to the causes for this prostration
might be INDUCED in without profit, because
q many theories would be advanced Is there
would be independent writera Without in
dulging in theories as to the cause OF this
prostration, ], therefore. will call your atten.
ton only to facas and to some questions as to
which 1t would seem there should be no disa.
greemert. During this prostration two es.
scntial elements of prosperity have been most
abundant ,,.......
LABOR AND CAPITAL.
Both have been largely unemployed.
Where security has been undoubted, capital
has been Obtainable at very moderate rates.
Where labor has been wanted, 1t has been
found In abundance at very moderate rates.
Two great elements OF prosperity, therefore,
have not been denied rs. A third might be
added: our soil and climate are unequalcd
within the limits Of any contiguous territory
ducts to feed and clothe people and in the
amount of surplus to spare to feed less ia.
vored people. Therefore, with these facts
in view, it seems to me wise craftsmanship
for this session of Congress to distribute in
proper channels these great elements of pros.
perity to any people. The debt abroad is
the element that can, with always sound
currency, enter into our affairs to cause any
continued depression in our industries Or
prosperity. A great conflict for national ex.
lstence made necessary, for temporary pur'
poses, the raising of large sum of money
from whatever source attainable. 1t was
made necessary in the wisdom OF Congress,
and do not doubt their wisdom in the prem.
Uses regarding the necessity of the time to
devise system of National currency which
it proved to be impossible to keep on par
with the recognized currency of the civilized
world. This begot spirit of speculation,
involving an extravaganza and Injuries not
required for the happiness or prosperity OF
people, and involving both directly and indi'
rectly foreign indebtedness. The currency
safe to hold for legitimate transactions requir-
ing money, and became q subject of specula.
ton In itself. These two causes, however,
have involved US in foreign Indebtedness,
contracted in good faith by borrower and
lender, which should be paid in coin, and &C.
cording to the bond agreed upon when the
debt was contracted-gOld or its equivalent.
The good faith of Government cannot be
violated toward creditors without National
disgrace. Our commerce should be encour.
aged. American ship. building and carrying
capacity should be increased; foreign mar.
kets sought for products Of the soil and man.
ufactufes, to the end that we may be able to
pay these debts. Where a market can be
created for the sale of other products, either
Of the soil, mine or manufactOry, new
! means is discovered of utilizing our idle caps
ital and labor to the advantage of the whole
people; but in my judgment the first step to.
wards accomplishing this object is to secure
q currency which shall be good wherever
civilization reigns; one which, if 1t becomes
superabundant with one people, will find .
market with some other; a currency which
has a. its basis the labor necessary to pro.
duce 1t which will give us value. Gold and
silver are now the recognized means OF ex.
change the 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 aud n debt contracted.
There should be no delay = certainly
no unnecessary delay = In fixing by
legislation method by which we
will return to specie. To the accomplish.
ment of this end l invite your special atten.
ton. believe firmly that there can be no
prosperous and permanent revival of business
and Industries until q policy is adopted, with
legislation to carry it out, looking to Q return
to specie basis. It Is easy to conceive that
the debtor and speculative classes may think
it of value to make o so.called money abun.
dant until they can throw portion Of their
burdens upon others; but even thesc1 believe
would be disappointed In the result II a
course should be pursued which will keep in
doubt the value of legal tender medium of
exchange. A revival of productive indus.
tries Is needed by all classes-by none more
hO11a nf ~ If OF art
with debts to kquidate from realization upon
its sale. But admitting that the two classes
Of citizens are to be benefited, BY expansion,
would it be honest to give 1t? Would not
the general loss be too great to Justify such
belief Would it not be more just and hon
est. and prudent to authorize each debtor to
issue his own legal tenders to the extent Of
his liabilities than to do this? Would it not
be safer, for fear of over issues by unscrupu.
lous creditors, to say that all debt obligations
are Obliterated In the United States and that
now we commence anew, each possessing all
he has at the time, free from all encum.
brance? The propositions are too absurd 70
be entertained for moment by thinking
people. Every delay In the preparation of
| final resumption partakes of this dishonesty.
The season will ut last arrive for the good
work Of redeeming our pledges to commerce.
/ believe it is In the power of Congress at
this session to devise such legislation as Will
renew confidence, revive all Industries, send
us on career of prosperity to last for many
years and to save the credit of the nation and
Of the people. The steps toward the return
to specie basis are the great requisites to
this end which are devoutly to be sought for,
and others which I may touch upon here.
! after. Al aati0n dealing in currency below
that, Of specie in value labors under two
great disadvantages. First, in having no
use for the worlds acknowledged medium of
lexchsnge--gold and silver; these are driven
out Of the country because there is9Ao de-
mand for their use Second, the mediums
Of exchange in use being OF fuctusting
value; for after, all il Is only worth just what
they win purchase Of gold and silver metals
having an intrinsic value, just IN proportion
10 the honest labor IL takes to produce them.
A large margin must be allowed for profit by
the manufacturers and producers 1t Is
months from the date Of production to the
date of realization. Interest upon capital
must be changed and the risk Of fluctuation
in the value OF getting that which il to be
received in payment Hence, high prices,
acting as q protection TO the foreign pro.
ducer who receives nothing in exchange for
the product OF his skill and labor except q
curfancy rood 1t n staDlA value the world