Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1875-01-20
PRESID ENT's MESSAGE ON THE FL
NANCE BILL.
Proposition TO Retain silver in the
Country by sliding Scale of Pre-
miums on Gold and Interest.

WASHINGTON, Jan. lathe Presi-
dent sen. to the Senate to-day the fol-
lowing message accompanying his APP
proval of the new finance bill:
To the Senate of the United States.
Senate bill No. 1044, "to provide for
the resumption of specie payments"
is before me and this day receives my
signature of approval.
| venture upon this unusual method
of conveying the notice of approval to
the House, in which the measure
originated, because of its great import
ance to the country at large, and in
order to suggest further legislation,
| which seems to me essential to make
this law effectual.
1t is "A subject of congratulation that
a measure has become law which
| fixes a date when specie resumption
shall commence, and implies all obli-
CATION on the part of Congress, If in
its power TO give such legislation as
may prove necessary to redeem this
promise. To this end l respectfully
call your attention to a few sugges-
ton.
First. The necessity for an increased
revenue to carry out the obligation of
adding to the sinking fund annually
|
amounting now to about thirtyfour
million dollars per annum, and to car
ry out the promises of this measure to
redeem under certain contingencies,
eighty millions of the present legal
tenders, and, without contingency, the
fractional currency now in circulation.
How to increase the surplus revenue is
for Congress to devise, but / will VEN
ture to suggest that the duty on tea
and coffee might be restored without
permanently enhancing the cost to the
consumers and, that the ten per cent.
horizontal reduction of the tariff on
articles specified in the law of June 9,
1872, be repealed. The supply of tea
and coffee already on hand in the Uni
: ted States would, in all probability, be
advanced in price by adopting this
measure. But it is known that the
: adoption of free entry to those articles
of necessity did not cheaper them but
merely added to the profits of the
countries producing them, or of the
middlemen in those countries who
have the exclusive trade in them.
Second. The first section of the bill
, now under consideration provides that
the fractional currency shall be re-
deemed in silver coin as rapidly as
, practicable. There is no provision
preventing the tiuctuation in the value
of the paper currency. With gold at a
g premium of anything over ten per
. cent. above the currency in use it is
probable, almost certain, that silver
| would be bought up for expectation as
! fast as it was put out, until change
would become so scarce as to make the
l premium on it equal TO the premium
+ on gold, or sufficiently high to make
it no longer profitable to buy for exc
: port, thereby causing direct loss to
s the community at large and great
3, embarrassment to trade.
AS the present law commands final
f resumption on the first day of Janu~
airy, 1879, and as the gold receipts by
the treasury are larger than the gold
e payments, and the currency receipts
than the currency payments, thereby
making monthly GALES of gold necesN
Il sary to meet current currency expen-
@ ses, it occurs to me that these difficult
ties might be remedied by authorizing
/. the Secretary of the Treasury to re-
deem legal tender notes whenever
presented in sums of not less than one
hundred dollars and multiples thereof,
at premium for gold of ten per cent.
less Interest at the rate of two and one
half per cent per annum, from the
first day Of January, 1875, to the date
" of putting this law into operation, and
u diminishing this premium at the same
y rate until final resumption, changing
e the rate of premium demanded from
e time 10 time as the interest amounts
II to one quarter of one per cent. / sug-
Y gest this rate of interest because it
n would bring currency at par with gold
Y at the date fixed by law for final re-
n sumption. / suggest ten per cent. as
fhaA do, 81
: because l believe this rate would in
d sure the retention Of silver in the
/, country for change.
The provisions of the third section
d of the act will prevent combinations
IS being made to exhaust the treasury of
= coin. With such law it is presuma-
a BILE that no gold would be called for not
d required for legitimate business pur-
poses. When large amounts of coin
o should be drawn from the treasury,
n correspondingly large amounts of cur
e rency would be withdrawn from circu-
It lation, thus causing a sufficient strin~
e gency in currency TO stop the outward
n flow of coin.
The advantage of currency of a
fixed, known value would also be
al reached. In my opinion, by the en-
actment of such law, business and in
IS dustries would revive and the begin
l. ming Of prosperity on a firm basis
II would be reached.
IS Other means of increasing the rev.
I; enues than those suggested should
d probably be devised, and also other
: legislation. In fact, to carry out the
l. first section of the act another mint
2, becomes a necessity. With the pres
> ent facilities for coinage il would take
/ a period probably beyond that fixed by
: law for final specie resumption TO
: the business Of the country.
j. II = GRANT