Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1874-12-17
PRESIDENTS MESSAGE.
To The Senate and Hons. Of Representatives:

To the Senate and House Of Representatives:
THE BUSINESS rRosrRATIos
Since the converting OF Congress one year 80
the nation has undergone prosfration 10 p per
Dess and the industries such as has Dot nYsn
witnessed with ne for many years. ,Ppes,s ~ in
es to the causes for this prostrstion mIsnt =. -
dulged in without profit, because az many w
Dries would be advanced az there wouid ue il., a
pendent wrters who should express snsi og IN
views upon the subject. without indaiging -
theories as to the cause OF ihis pfosuana" -.
therefore, / will call your attention only 70
the fact and 70 some qo ae,sd,'gbn s no disa'
greemeDt. During this prostration TWO sssen s
elements Of prosperity have been mos. auunaa
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 u mas Deeh
found In abundance, at cheap rates coinpaI,esn
with what of the necessarfes and comforts OF iis
could be purchased with the wages demanaca'
Two great elements Of prosperity, therefore
have not been denied us; third might
be added. Our soil and climate are un-
ednaled within the limits OF any conpgu'
Gus territory under one nationality ior ~ FaIi
cities Of products TO feed and clothe people ana
In the amount OF surplus to spare 10 feed less "a
yored people. Therefore, with these iacb ~
view, 1t seems 10 me that wise statesmanshIP y.
this session of Congress would dictate-lghorlhe
the past--distributing In proper channels lnese
great elements Of pros perity 10 any people Debt
abroad is the only element that can, WIN aiways
sound currency, enter into our aHaiIs 70 csusS
any continued depression In the Industries ana
PROSPERITY OF our people
THE CURRENCY
A great conflict for national existence maae
necessary for temporary purposes the raising VI
large sums Of money from whatever source ~
tanable. II was made necessary In the WISDOM
Of Congress and do not doubt their WISDOM IN
the premises, regarding the necessity OF the ues,
to de wise system OF national currency, which ~
IL proved to be impossible TO keep on par win
the recognized currency OF ne ciyilizea worn ~,
This begot spirit Of speculation, involving an
extravaganza and luxury not required lor .he
happiness or prosperity Of people, ana insJv
ing both directly and indirectly i 1
indebtedness. The currency, being OF nnctu-
ating value and unsafe to hold for legitimate
transactions requiring money! became ssoJect
Of speculation In itself These Two e eoraSgn
indebtedness contracted In good faith by me
borrower and the lender, which should NC pald IN
coin and according 70 che bond agreed apI,
The good faith OF the Government can.
not Be violated toward it's creditors at
the national d,gracss American Na, shp
building and carrying capacity lncreaseui LOT
eign markets sought for products OF the soil ana
manufacture to che end that we may Dc ap,e "
Tor the sale Of our products, either OF
the soil, the mine or the msnnia1GIto,ry,
our idle capital and labor to the advantage OF the
whole people; but In my Judgment the hfst
step toward accomplishing, this object II
e Secure currency g%Jha n Tna Il becosc4
superabundant with one people, will find Z lar
ket with some otber-a currency which has ~ its
basis the labor necessary 10 produce IL, Whlch
will give Il value. Gold and silver arc now the
recognized medium of exchange the civilized
world over, and TO this we should return with the
In New of the pledges ofthe American Congress
when our present egaltender system w4s adopt
ed and the debt contracted, there should De
mo d By no @eh"G By Which win
turn to specie. To the accomplishment OF THIS
end invite, your special attention. ! believe
firmly that there can be no prosperous and per-
manent revival Of business and thetndustries I'M.
til policy Is adopted, with legislation TO caAfy II
ont, looking toa return to a specie basis. ~ Is
classes may think II Of value TO make so
called money abundant until they can throw q
portion Of their burdens upon others; but even
these / believe, would be disappointed By the
result IL a course should be pursued which VIII
keep In doubt the value Of the lcgal-tender me
dium Of exchange. revival OF the productive
industries ~ needed by NIL classes, and by none
more than the holders OF property, OF whatever
sort, with debts to liguidate from The realization
upon its sales But, admitting that the two
classes Of citizens referred TO are TO be benent-
ed by expansion, would II be honest 10 give III
Would not the general loss be too great to
justify such relief Would IL not be just
debtor TO issue his own legal-'enders 10
the extent OF his liabilities As TO do thisf
Would II not be safer, for fear OF oyer-issue,s
by INSCRIPTIONS creditors, 70 say that all
debts and obligations are obliteratcd In The
United States aud now we commence anew, each
possessing all he has at the time free from In.
cumbrancef These propositions are too absurd
To be entertained for moment by thinking PEG
pie. Every delay in the preparation for final re,
sumption partakes OF this dishonesty and
Is only iefs in degree as the hope
is held out that o convenient season will
at last arrive for the good work 81
redeeming our pledges to commence. II 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 al large; believe Il
IL In the power OF Congress at this session :.
device such legislation IA VIII renew conn
dence revive ali the Industries, start us on u ca
reer Of prosperity to iast Tor many years' ana :.
Steps toward the return to n specie basis are thu
great requisites TO this deyoutl y'to-be-sought-f
end. There are other points may touch upon
hereafter.
nation dealing in currency below that o
specie In value labors under two great disadvan
tages: First having no use for the worlds nc
yer, these are driven out of'the country becaus,
there liz no demand for their Use; second
the medium OF exchange IN use being Q
fuctuating value, for, after all, 1t u
only worth Just what 1t will purchase OF gold ant
silver, metals having an Intrinsic value Just II
proportion 10 the honest labor IL takes 10 produce
them, large margin must be allowed Tor proa
by the manufacturer and producer. II is months
from the date OF production to the date OF realiza
ton Interest upon capital must be charged ano
risk of fuctnation In the value OF that which L
10 be received In payment added; hence high
prices act as protection to the foreign pro
Queer who receives nothing In exchange for the
product of his skill and labor except currency
good ut q 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 for the want of sound financial system
falls upon the workingman, who must after all
produce the wealth, and the salaried man who
superntcnds and conducts business. The bur
den falls upon them two ways: by the deprivation
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;
but will venture to suggest two or three things
which seem TO me AZ absolutely necessary
TO a return to specie payments--the first
great requisite in return To prosperity.
The legal-tender clause TO the law au'
thoriZing the Issue OF currency by
the National Government shonld be repealed. 10
take effect az To all contracts entered into after
day fixed In the repeating act not TO apply, how.
ever TO payments OF salaries by the Govern.
ment or for other expenses now pfoyid
ed by law to DO paid In currency, In the
interval pending between the repeal and final
assumptions provision should be made by which
the Secretary of the Treasury can obtain gold ns
Al may become necessary from time to time, nom
the date when specie resumption commences
To this might and should be added revenue suf
Acently In excess of expenses 70 insure an accu'
mutation OF gold in the Treasury to sustain re-
demption.
recommend this subject TO yonr careful con
sjderation, believing that favorable solution Il
atfaina ble aud that If reached by this Eongies