The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1875-01-21
NATIONAL FINANCES.

Views of the President-He Offers Some
Suggestions Regarding the New FL
nance Bill-AIso FavOrs the RestOra-
tien of the Tea and Coffee Tax, and
the Increase OF the Tariff to the Old
Standard.
President Grant has signed the new Cur
rency bill passed by Congress. Accompanying
his approval of the measure he sent to the
Senate the following message ernbodying his
views of it, and the legislation necessary to
render it effectuaI:
To the Senate of the United States:
Senate bill No. 1,044, to provide for the re-
sumption of specie payments, is before me,
and this day receives my signature of approx
al. venture upon this unusual method of
conveying notice of approval to the house in
which the measure originated because of it's
great Importance to the country at largo,
ana III order TO Suggest further Legislation
which seems to me essential to make this Jaw
effectual. 1t is a subject of congratulation
that the measure has become law. which
fixes the date when specie resumption shall
commence, and implies 81 obligation on the
part Of Congress, if in it's power, to give such
legislation as may prove necessary to redeem
this promise. To this end / respectfully call
your attention to few suggestions:
/. The necessity for increased reserve to
carry out the obligation of adding to the sink
debt, amounting now to about $34, O000 coo per
annum and to carry out the promises of this
measure to redeem, under certain contin-
gencies, $50, 000,000 of the present legal
tenders, and without contingency the frac-
tlonal currency now in circulation. How to in
crease the surplus revenue is for Congress to
devise, but I will venture to suggest
that the duty on tea and coffee might
be restored without permanently enhancing
the cost to consumers, and that the 10 per
cent. reduction of tariff on the articles speci-
fed in the law Of June 6, 1872 be repealed.
The supply Of tea and coffee already on hand
in the United States would in all probability
be advanced in price by adopting this meas
ure but it is known that the adoption of free
entry to these articles of necessity did not
cheaper them, but merely added to the profits
Of the countries producing them, or of mid
dlemen in those countries who have exclusive
trade in them.
g. The first section of the bill under con-
sideration now provides that fractional cur
rency shall be redeemed in silver coin as
rapidly as practicable. There is no provision
preventing fluctuation in the value of paper
currency with gold at premium of over 10
per cent. above the currency in use. 1t is
probable almost certain, that silver would
be bought up for expectation as fast
as it was put out, until change
would become 80 scarce as to make
the premium on it equal to the premium On
gold, or sufficiently high to make it no longer
profitable to buy for export, thereby causing
q direct less to the community at large and
great embarrassment to trade. As the pres
ent law commands the final resumption on
the 1st Of January, 1879, and as gold receipts
by the Treasury are larger than gold pay
ments, and currency receipts less than cur
rency payments, thereby making monthly
sales of gold necessary to meet the cur
rent currency expenses. it occurs to me that
these difficulties might be remedied by au-
thoriZing the Secretary of the Treasury to re-
deem legal tender notes whenever presented
in sums not less than 800 and multiples
thereof at premium for gold Of 10 per cent,
less interest at the rate of d per cent. per
annum, from the 1st of January, 1875, to
date, putting this law into operation and
diminishing this premium at said rate until
the fiual resumption, changing the rate of
premium demanded from time to
time, as the interest amounts to
one-quarter of one per cent. I sug-
gest this rate of interest because it would
bring currency at par with gold at the date
fixed by law for final resumption. suggest
10 per cent. as the demand premium at the
beginning because I believe this rate would
insure the retention of silver in the country
for change. The provisions of the third Sec
ton of the act will prevent combinations
made to exhaust the Treasury of coin. With
such law it i'd presumsble that no gold
would be called for not required for legiti-
mate business purposes. When large
amounts of coin should be drawn from the
Treasury, correspondingly large amounts of
currency would be withdrawn from circula-
ton, thus causing a sufficient stringency in
currency to stop the outward flow Of coin.
The advantages of currency of a fixed
known value would also be reached. In my
opinion, by the enactment of such law bust
ness and industries would revive, and the
beginning of prosperity on firm basis would
be reached. Other means of increasing /
the revenue than those suggested should
probably be devised, and also other legis-
Iation. In fact, to carry out the first Sec
ton of the act, another mint becomes
a necessity. With the present facilities for
coinage it would take period probably be-
yond that fixed by law for the final specie re-
sumption to coin the silver necessary to trans
act the business of the country. There are
now smelling furnaces for extracting silver
L~n,. 1~% he