The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-15
MESSAGE ON FINANCE.
The President Approves the Specie Re-
sumption Bill, with Suggestions.
Further Action Urged Upon
the Senate.
Greenbacks Redeemable by the
Sale Of Gold.
A NEW MINT REQUIRED.

Increase of the Revenue Proposed by the Restor-
alton of Former Custom Duties.
WASHINGTON, Jan. IA. 1875.
The President sent to the Senate to-day the fol-
lowing Message, accompanying his approval of
the new Finance bills
To THE SENATE OF THE UNITED STATES
Senate bill No. LOLA to provide for the resump-
tion OF specie payments is before me. and this day
receives my signature ana approval. 1 venture
upon this unusual method Of conveying the notice
OF approval to the House, IN which the measure
originated because Of its great Importance to the
country at large, and in order to suggest
further legislation, which seems to me essen
tial to make this law enectual. 1t IL
subject of congratulation that o measure
has become a law which fixes o date when
specie resumption shall commence and implies an
obligation on the part Of Congress- II In its power
to give, such legislation as may prove necessary
to redeem this promise. To thus end respectfully
call your attention to a few suggestions
HOW TO INCREASE THE REVENUE.
Ftrst-The necessity for an increased revenue to
carry out the Oblig alton OF adding to the sinking
fund annually one per cent OF the public debt,
amounting now to about $S4. OOO, 900 per annum,
and, to carry out the promises of this measure to
redeem, under certain contingencies, $780, OOO 900 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 venture to suggest that the duty
on tea and coffee might be restored without per-
manently enhancing the cost to the consumers
ana that the ten per cent reduction OF the tariff
on the articles specified in the law OF June 9, 1872
be repealed. The supply of tea and coffee already
Init IN
all probability, be advanced in price by
adopting this measure. But 1t Is known that the
adoption OF Tree entry to these articles OF neces-
sity did not cheaper them, but merely added 10
the profits OF the countries producing them, or OF
the middlemen in those countries, woo nave the
exclusive trade in them.
HOW TO BRING CURRENCY TO PAR IN 1879.
Second-The first section Of the bill under con
slderatiOn now provides that the fractional cur
rency shall be redeemed in silver coin as rapidly
as practicable. There Is no provision preventing
the nuctuation IN the value OF paper currency.
With gold at premium OF anything over ten per
cent above the currency IN use 1t is probable
almost certan-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 premium on 1t equal to the premium on gold,
or sufficiently high to make 1t no longer profitable
10 buy for export, thereby causing direct loss to
the community at large and great embarrassment
to trade. AS the present law commands final re.
sumption on the 1st OF January. 1879, and as the
gold receipts by the Treasury are larger than the
gold payments and the currency receipts than the
currency payments, thereby making monthly
sales OF gold necessary to meet current currency
expenses, it occurs to me that these dili-
culties might be remedied by authorizing
the Secretary OF the Treasury to redeem
legal tender notes whenever presented In sums
OF not less than 500, and multiples thereof, at
premium Tor gold OF ten per cent less interest at
the rate OF two and q half per cent per annum
from the 1st day OF January. 1876, TO the date OF
putting this law into operation, and diminishing
this premium at the same rate until final resump-
ZION, changing the rate Of premium demanded
from time to time as the interest amounts TO one
quarter OF one per cent. suggest this
rate OF interest because It would bring cur
rency at par with gold at the date
fixed by law for final resumption. l suggest ten
per cent as the demand premium at the begin
ming, because believe this rate would insure the
retention OF silver in the country for change. The
provisions or the third section Of the act will pre-
vent combinations being made to exhaust the
treasury OF coin.
A ROAD TO PROSPERITY.
With such law It is presumable that no gold
would be called for not required for legitimate
coin should be drawn from the Treas
ury, correspondingly large amountB of cur
rency would be withdrawn from ctrcula-
ton, thus causing sufficient stringency in
currency to stop the outward now OF coin. The
advantage Of currency OF fixed and known
value would also be reached. In my opinion, BY
the enactment OF such a law business and Indus
tries would revive, and the beginning OF pros.
perity on firm basis would be reached
AN ADDITIONAL MINT REQUIRED.
Other means OF increasing the revenue than
those suggested should probably be DEVISED and
also otner legislation. In fact to carry out
the first section 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 final specie resumption
to coin the silver necessary to transact the bust
ness Of the country. There are now snelting fur.
naces for extracting the silver ana gold from the
ores brought from the mountain Territories in
Chicago st. Louis and Omaha. three In the for
mer city, and as much OF The change required
will be wanted in the Mississippi valley States, and
as the metals 10 be coined come from the west OF
those States, and as understand the charges for
transportation OF bullion from either OF the cities
named to the Mint in Philadelphia or to New York
city amount to 81 Tor each $1,000 worth, with an
equal expense for transportation back. it would
seem fair argument in favor OF adopting one or
more Of these cities as the place or places for the
establishment OF new coinage facilities.
IMPORTANCE OF THE QUESTION.
have &ntured upon this subject with great
dif1dence, because 1t 10 so unusual to approve q
measure tas l most heartily DO this) even II no
further legislation Is attainable at this time and
TO announce the fact by message; but I DO 80 be.
cause feel that 1t is subject OF such vital i'm.
portance to the whole country that It should
receive the attention OF. and be discussed BY Con.
gress and the people, through the press and in
every way, TO the end that the best and most sat-
isfactory course may be reached OF executing
what deem the most beneficial Legislation on
most vital question to the interests and prosperity
OF the nation. U. S. GRANT.
EXECUTIVE MANSION, Jan. II, 1875.
SWITCHING SIIGAR