Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-12-08
NO. 2e4.
Presidents Message.

Since the convening of Congress one year ago,
the nation has undergone prostration in business
and industries such IS has not been witnessed
with us for many years. Speculations 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
writer's, those who expressed their own views
without borrowing upon the subject, with
out indulging theories to the cause Of this
prostration. Therefore will call your attention
only to tho fact, and to some questions -
to which it would seem there would be NO dis
agreement. During this prostration two special
elements Of prosperity have been most abundant
labor and capital. Both have been largely unem-
ployed. Where security has been undoubtsd, cap
ital has been attainable at very moderate rates;
abundance at cheap rates, compared with what Of
the necessaries Of life could be purchased with the
wages demanded. Two great elements Of prosper
ity, therefore, have not been denied Us. third
might be added our soil and climate are unfivsed,
within the limits of contiguous territory under ono
nationality. for its variety Of products to feed and
clothe people, and in the amount Of surplus TO
spare to feed less favored people.
THE PUBLIC DEBr-Irs PAYMENT IN Gcao.
The CURRENCY.
Therefore, with these facts in view, it seems to
that wise craftsmanship at this session Of Con-
gress would dictate legislation ignoring the past,
directing in proper channels those great elements
of prosperity to any people. The debt abroad Is
the only element that can, with always . sound
tinued depression in the industries and prosperity
of our people. A great conflict for National
existence made necessary, for Temporary
purposes, the raising Of large sums OF
money from whatever source attainable. 1t
was made necessary, in the wisdom Of Congress.
l do not doubt their wisdom in the premises, re-
garding the necessity of the times to devise sys-
tenn of national currency which proved to be i'm
possible to keep on par with the recognized cur
rency of the civilized world. This begot q spirit
of speculation, involving an extravaganza and lux
ury not required for the happiness or prosperity
of people, and involving both directly
and indirectly foreign Indebtedness:
The currency being of huctuating value, and
therefore unsafe TO hold for legitimate transac-
tions requiring money, became subject ofspecu-
lation 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 according to the bond
agreed upon when the debt was contracted-gold
or its equivalent The good faith Of the govern
ment cannot be violated towards creditors with
out national disgrace, but our commere
should be encouraged, American ship
building and carrying capacity increased, foreign
markets sought for products OF soil and manufae-
tories to the end that may be able to pay these
debts Where a new market can be created for the
sale of products, either of the soil, the mine, or
the mandatory, a new means IS discovered OF
utilizing our idle capital and labor to the advan-
tage of the whole people; but in my Judgment,
the first steps towards accomplishing this object is
to secure currency good wherever civilization
reigns-one which, if it becomes super-abundant
with one people, will find a market with some
other; a currency which has as Its basis the labor
necessary to produce it, which will give to It
value. Gold and silver are now the recognized
mediums of exchange the civilized world over, and
to this we should return with least practicable de-
Law. In view of the pledges of the American Con-
gress when our present legal tender system was
adopted, and the debt contracted, there should be
no delay-certainly no necessary delay-in fixing
by legislation method by which we will return
to specie. To the accomplishment Of this end,
invite your special attention. l believe firmly
that there can be no prosperous and permanent
revival of business and industries, until policy
is adopted, with legislation to carry it out, looking
70 return to specie basis 1t is easy to conceive
that the debtors and speculative classes may
think it of value to them to make
the so-called money abundant until they throw .
portion of their burdens upon others; but even
these believe would be disappointed in the result,
if course should be pursued which will keep in
doubt the value of the legal tender medium of
exchange. A revival of the protective industries
is 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 sale. But
admitting that that those two classes Of citizens
are to be benefited by the expansion, would it be
honest to give L? Would not the general loss be
too great to justify such relief Would it not be
just as honest and prudent to authorize each debt
or to issue his own legal tender to the extent of
his liabilities, as to do this Would it not be SAT-
er for fear of an over issue by unscrupulous cred
itors, 10 say that all debt obligations are obliterat
ed in the United States and now we COM
mence anew, each possessing all he has at the
time free from incumbrarcel These propositions
are too absurd to be entertained for moment by
thinking or honest people; yet every delay in
preparation for final resumption partakes of this
and is only less in degree; and tho
hope is held out that convenient season will at
last arrive for the good work of redeeming our
pledges. This will never come, in my opinion,
except by positive action by Congress. Only Ma
tional disaster can ensue which will destroy for 4
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
integrity Of the nation and Of individuals. be-
lieve that it is in the power of Congress at this
session to devise such legislation as will renew
confidence revive all the industries, start us on Q
career Of prosperity, to last for many years, and
to save the credit of the nation anduOf the people
Steps towards return to specie basis are the
great requisites to this devotedly to be sought for
end. There are others which may touch upon
hereafter.
A nation dealing in currency below that of spe-
Gle IN value labors under two great disadvantages
first, having no use for the worlds acknowledged
mediums of exchange, gold and silver, these are
driven out of the country because there is no de-
mand for their use; second, the medium of ex-
change in use being Of tluctuating value, for af-
ter all it is only worth the price of what it will pur
chase of gold and silver metals, having an ntrin-
sic value just in proportion to the honest lsbor it
takes to produce them. A larger margin must be
allowed for profit by manufacturer and producer.
1t is months from date of production to date of
realization; interest upon capital must be charged
and risk of fuctuaton in value Of that which is to
be received in payment added. Hence the high
prices acting as protection to the foreign pro-
ducer, who receives nothing in exchange for the
product Of his skill and labor, except a currency
good at a staple value the world over.
1t seems to me that nothing is clearer than the
greater part of the burden of existing prostraton
for the want of sound financial system, falls up
on the workingman who must after all produce
the wealth, and the salaried man who superin-
tends and conducts the business. The burden
falls upon them in two ways, by the deprivation
of employment, and by the decreased purchasing
power Of their salaries.
The RETURN TO SPECIE PAYMENT
1t is the duty of Congress to devise the method
of correcting the evils which are acknowledged to
exist, but l will venture to suggest two or three
things which seem to me absolutely necessary
to . return to specie payment. The first great
requisite order to return to prosperity is that
the legal tender clause to the law authorizing
issue of currency by the national poyerrmert