Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1874-12-11
THE PRESIDENTS MESSAGE.


Since the converting Of Congress one |
year ago, the nation has undergone a pros
ration in business and industries such us
has not been witnessed with us for many
years. Speculation as To the causes for
Ibis prostratiun might be INDUCED in with
nut profit, because as many theories would
be advanced, as there would be iudepen-
dent writers among those who expressed
their own views without borrowing upon
the subject Without indulgiug in theories
az to the cause of this prostration, therefore,
will call your attention only to the fact
and to some questions, as TO which it
would seem there would bo no disagree
ment
FINANCIAL LEGISLATION.
During this prostratou two special ele-
ments of prosperity have been most album
dant-labor and capital. Both have been
largely unemployed. Where security has
been undoubted, capital has been attain
able at very moderate rates. Where labor
has been wanted 1t has been found in
abundance at cheap rates, compared with
what of the necessaries of life could be
purchased with the wages demanded. Two
great elements of prosperity, therefore,
have not been denied us. A third might
be added: Our soil and climate are un-
rivalled within the limits of any contigu-
Gus territory under one nationality for its
variety of products TO feed and clothe peo-
pie, and in the amount of surplus TO spare
to feed less favored people. Therefore,
with these facts in view, II seems TO me
that wise craftsmanship at this session OF
Congress would dictate legislation, ignor-
ing the past and directing in proper chan
nels these great elements of prosperity to
any people.
The debt abroad is the only element that
can, with always a sound currency, enter
into our affairs to cause any continued de-
preston in the industries and prosperity
: a. -, A iyt fNrN mol
al existence made necessary for Temporal
ry purposes the raising of large sums OF
money from whatever source attainable in
the wisdom of Congress. | do not doubt
their wisdom in the premises, regarding
The necessity of the times, to devise sys-
tenn of national currency which 1t proved
to be impossible to keep on par with the
recognized currency of the civilized world.
This begot q spirit of speculation involv-
ing an extravaganza and luxury not re-
CURED for the happiness and the prosperl-
~ of people, and involving both directly
and indirectly foreign Indebtedness. The
currency being of calculating value, and
therefore unsafe TO hold for legitimate
transactions requiring money, became
subject of speculation in Itself. These two
causes, however, have involved us in n
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 government cannot be VIC.
lent toward creditors without national dis
grace But our commerce should be en-
couraged; American shipbulding and
carrying capacity increased; foreign mar
kets sought for products of the soil and
manufactures, TO the end that we may be
able to pay these debts. Where new mar
ket can be created for the sale of our pro-
ducts, either of the soil, the mine or the
iS lispnXprn1
of utilizing our idle capital and labor to
the advantage of the whole people. But in
nv Judgment the first step toward accom-
plishing this object is TO secure currency
good wherever civilization reigns; one
which, If it becomes superintendent with
one people, will find market with some
other currency which has as its basis
the labor necessary TO produce (which
will give to it its value. Gold and silver
are now the recognized mediums of eX-
change the civilized world over, and 10
this we should return with the least prac-
ticable delay.
In view of the pledges of the American
Congress when our present legal tender
system was adopted aud the debt contract
ed. there should be no delay, certainly no
unnecessary delay, in fixing by legisla-
ton a method by which we will return TO
specie. To the accomplishment of this end
invite your special attention. | believe
firmly that there can he no prosperous and
permanent revival of business and indus
tries until policy is adopted with legisla-
ton to carry 1t out looking to a 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 theI throw a
portion of their burdens upon others: Int
even these, believe, would he disappoint-
ed in the result if a course should he pur-
sued which will keep in doubt tho 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 real
ization upon its sale. But admitting that
these two classes of citizens are to be bene-
fitted by the expansion, would it be hon
est to give it? Would not the general loss
be too great to justify such relief? Would
II not be just as honest and prudent to
authorize each debtor to issue his own le-
gal-tender to the extent of his Liabilities as
to do this? Would it not be safer, for fear
of an over-issue by inscriptions credit
ors, to say that all debt obligations are OBJ
liberated in the United States and now we
commence anew, each possessing all he
has at the time free from incumhrance?
These propositions are too absurd to be
entertained for moment by thinking or
honest people. Yet every delay in prep.
aration for final resumption partakcs Of
this dishonesty, and is only less in degree
as the hope is held out that convenient
season will at last arrive for the good work
of redeeming our pledges TO commence.
1t will never come, in my opinion, except
by positive action by Congress or by national
disaster, which will destroy for a time at
least the credit of the individual and the
State at large. \ sound currency might
be reached by total bankruptcy and dis
credit of the Integrity of the nation and of
individuals. believe it is in the power of
Congress at this session TO devise such leg
islation as will renew confidence, revive
all the industries, start on career of pros
perity to last for many years and TO save
the credit of the nation and Of the people.
Steps toward the return TO specie basis
are the great requisites to this devoutly-
be-sought for end. There are others
which may touch upon hereafter.
A nation dealing in currency below
that of specie in value labors under two
great disadvantages. First-Having no use
for the worlds acknowledged mediums of
exchange, gold and silver, these are driv-
en- out of the country, because there is
no demand for their use. Second-The
medium of exchange in use being of a
huctuating value, for after all it is only
worth the price that ii will purchase of
gold and silver metals, having an intrin-
sic value just in proportion to the honest
labor it lakes TO produce them, larger
margin must be allowed for profit to the
manufacturer and producer. 1t is months
nom the cate OF production 10 the GATE oil
realization. Interest upon capital must be
charged, and the risk of fluctuation in the
value of that which is TO be received in
payment added. Hence the high prices
acting as a protection to the foreign pro-
ducer, who receives nothing in exchange
for the product of his skill and labor, ex-
cept currency good at staple value the
world over.
1t seems to me that nothing is clearer
than that the greater part of the burden OF
existing prostration, for the want of a
sound financial system, falls upon the
working man, who must, after all, produce
the wealth, and upon the salaried man