The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1874-12-10
The Presidents Messaqe.
To the Senate and House of Representatives

/
THE BUSINESS PRosTRATIoN.
Since the convening Of Congress one year ago
the nation has undergone prostration in busi
ness and the industries such as has not been
witnessed with US for many years. Speculation
az 10 the causes for this prostration might be in
dulged in without profit, because as many the
ories would be advanced as there would be inde-
pendent writers who should express their own
views upon the subject. Without indulging in
theories as to the cause of this prostration,
therefore, ! will call your attention only to
the fact and to some questions as to
which il would seem there should be disa-
greement. During this prostration two essential
elements of prosperity have been most abundant
labor and capital. Both have been largely un-
employed. Where security has been undoubted
capital has been attainablc at very moderate
rates. Where labor has been wanted il has been
fonnd 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; third might
be added. Our soil and climate un-
Ous territory under one nationality for its yar-
cites of products to feed and cothe people and
vored people. Therefore, with these facts in
view. it seems to me that wise craftsmanship at
this session of Congress would dictate-ign0ring
the past--distributing in proper channels these
great elements of prosperity 70 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.
great conflict Tor national existence made
necessary for temporary purposes the raising Of
large sums Of money from whatever source at
tainable. II was made necessary in the wisdom
OF Congress, and do not doubt their wisdom in
the premises, regarding the necessity OF the times
to devise system of national currency, which il
is proved tn he imDOSsIbie TO keen with
the recognized currency of the civilized world
This begot spirit Of speculation, involving an
happiness or prosperity of a people, and nyov-
ing. both directly and indirectly. foreign
Indebtedness. The currency, being of fluctu-
ating valne and unsafe to hold for legitimate
transactions requiring money, became subject
OF speculation in itself. These two causes,
however, have involved us in 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--goid or its equivalent.
The good faith Of the Government can.
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 the manuiactory.
new means is discovered Of utilizing
idle capital and labor to the advantage of the
whole people, but i'll my judgment the first
step toward accomplishing this object is
to secure a currency good wherever civ
iliZation reigns--one which, ii ii becomes
superabundant with one people. will find mar
ket with some other-a currency which has as It's
basis the labor necessary 10 produce 1t, which
will give il value Gold and silver are 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 fthe American Congress
when our present legal-tendcr system was adopt
ed and the debt contracted there should be
no delay, certainly unnecessary delay, in fix
ing by legislation a method by which we will re-
turn t. specie To the accomplishment OF this
end invite your special attention. beleNe
firmly that there can be no prosperous and per
manent revival of business and the industries un-
til policy is adopted. with legislation to carry 1t
ont. looking toa return TO specie basis 1t Is
easy to conceive that the debtor and speculative
classes may think ii of value TO make SO
called money abundant until they can throw
portion Of their burdens upon others; but even
these. | believe would be disappointed by the
result if course should be pursued which VIII
keep in doubt the value OF the legal-tender me-
dunn of exchange. A revival of the productive
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 sales. But admitting that the two
classes of citizens referred to are to be benefit
ed by expansion, would It be honest to give 1t!
Would not the general loss be too great to
Justify such relief? Would it not be just
MS honest and prudent to authorize each
@ Of bis hs sbas ss 10 DO hs
Would il not be safer, for fear OF over-issues
BY INSCRIPTIONS creditors, to say that ALL
debts and obligations are obliterated IN the
United States, and now we commence anew each
possessing all he has at the time free from in
cumbrance? These propositions are too absurd
TO be entertained for a 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 convenient season Will
at last arrive for the good work OF
redeeming 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 al large believe II
is in the power Of Congress at this session to
devise such legislation as will renew conf
dence revive all the industries. start us on ca
recr Of prosperity to last for many years, and to
save the credit of the nation and OF the people.
Steps toward the return 10 specie basis are the
great requisites To this tly-to-be-soughf-or
end. There are other points may toHch upon
hereafter.
4 nation dealing in currency below that of
specie in value labors under two great disadyan-
tages: First. having no use for the world : ac-
knowledged medium of exchange, gold and sll-
yer. these are driven out OF the country because
there is no demand for their use: second.
the medium Of eSipange d,or n use Il, oeiHs 2l ;i
only worth Just what il will purchase of gold and
silver, metals having an intrinsic value just in
proportion to the honest labor it takes to produce
u
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 and
risk Of fiuctuation in the value OF that which Is
TO be received in payment added hence high
prices act protection to the foreign pro
ducer, who receives nothing in exchange for the
product Of his skill and labor except currency
GOOD at d stable value the world over.
il seems to me that nothing l. clearer than that
the greater part of the burden Of existing pros
tration for the want of a sound financial system
~. ynrr w ~
produce the wealth, and the salaried man who
superintends and conducts business. The bur
den falls upon them two ways: by the deprivation
Of emDloyment and by the decreased purchasing
power of their salaries. 1t is the duty of Con-
rress 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 absolutely necessary
to return to specie payments-the first
great requisite in return to prosperity.
The legal-tender clause to the law au-
the National Government should be repealed to
take effect 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 provid
ed by law TO be paid i'll currency. In the
interval pending between the repeal and final
provision should oe mace ov Whicn
the Secretary of the Treasury can obtain gold as
it NAV become necessary from time to time from
the date when specie resumption commences.
To this might and should be added revenue SUI
of gold in the Treasury to sustain re-
demption.
| recommend this subject to your careful con-
sideration believing that a favorable solution Is
and that if reached by this Congress
the present and future generations will ever
gratefully remember it as their delivcrer from
thralldom of evil and disgrace. WIN resumption
free banking may be authorized with safety. Civ
ing full protection 10 bill-holders, which they
have not under the existing laws. Indeed
would regard free banking as essential. II
Ias,. a ala ifv tp no
more currency should be required for the transac-
tion of legitimate business, new banks would
be started, and ,,iI IN ,uina.s turn banks ,,hsn
it was found there superabundance of
currency The experience and Judgment OF the
people can best decide just how much currency
Is required for the transaction of the business of
the country 1t is unsafe TO leave the settlement
fthis question to Congress. the Secretary Of the
Treasury or the Executive. Congress should
make the regulations under which banks may
exist but should not make banking monopoly
by limiting the amount of redeemablc paper cnr-
rencv that shall be authorized. Such Importance
| do attach to this subject, and so earnestly do
commend it to your attention, that give II prom
inence by introducing il at the beginning of this
message
FOREIGN RELATIONS.
During the past year nothing has occurred to
disturb the genial friendly and cordial relations
of the United States with other powers. The
submitted herewith between this
Government and its diplomatic representatives
in other countries shows a satisfactory condition
of all questions between the United States and
the most of those countries, and with few ex-
ceptions, to which reference is hereafter made,
the absence of any points of difference to be ad-
justed.
The notice directed by the resolution of Con-
eress of June II. lse4. to be given 10 terminate
the convention of July IL, 1858 between the United
States and Belgium has been gwen. and the
treaty will accordingly terminate on the LIST day
of July. 1875 This convention secured to certain
Belgium vessels entering the ports Of the United
States exceptional privileges which are not &C.
corded to our own vessels. The other features OF