Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-01-16
SPECIE PAYMENT.
y MESSAGE BY THE President.
WASHINGTON, Jan. 1.-THE President sent to
the Senate to-day the following message accom-

| WASHINGTON Jan. 1.-THE President sent to
the Senate to-day the following message, accom-
panying his approval of the finance bill
| TO tie Senate Of The Enited States;
| The Senate bill number 1914 TO provide tie re-
sumption of specie payments is before me, and
| this day receives my signature and approval.
| venture upon this unusual method OF convey
ing the notice of approval to the House in which
the measure orig mated, because of its great im-
portapce to the country At large, and in order to
| suggest further legislation which seems to me to
make this law effectual. 1t is subject Of congrat-
ulatiop that measure has boone law which
| fixes oath when specie resumption shall COM
mcnce and implies an obligation on the part OF
Congress if in its power to give such legislation
as may prove necessary to redeem this promise.
To this end respectfully call your attention to
| q few suggestions.
First-'fhe necessity for an increased revenue
to carry out the obligation Of adding to the sink
ing fund annually one per cent of the public debt,
amounting now to about 100000 per annum,
| and to carry out the promises OF this measures to
redeem under certain contingencies $50, 900 ,0U0
Of present legal tenders and without contingency
the fractional currency now in circulation. How
to increase the surplus revenues is for Congress to
devise. but venture to suggest that the duty on
| tea and coffee might be restored without perma-
nenty embracing the loss to consumers and that ten
per cent reduction of tariff onartcles specified in
the law of June 6, 1872, be repealed. The supply
| oil tea ana cOftec aTeauy on nalu IN tne u nlIeu
States would in all probability be advanced in pri
ces by adopting the measure. but it is known that
the adoption of free entry to these tcles Of ne
cessity did not cheaper them but merely added to
| its profits Of countries producing them or of the
middlemen in those countries who have the en-
elusive trade in them.
I'd. The first section of the bill under consider
alton now provides that the fractional currency
shall be redeemed in silver coin rapidly prac
ticable. There is no provision preventing the
huctuation in the value Of the paper currency.
w it'll gold at a premium of anything over 10 per
cent. above the currency in use, it is probable, al
most 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 premium
on it equal to the premium on gold or sufficiently
high to make it no longer profitable to buy for es
port thereby causing d loss 10 the community at
large and great embarrassment to trade.
As the present law commands final resumption
on the Isl of JAM 1872 and the gold receipts by
the Trcasuary are larger than the gold payments
and the currency receipts than currency payments
thereby making monthly sales of gold Necessary
to meet current currency expenses. it occurs to
me that these difficulties might be remedied by au-
thorizing the Secretary Of the Treasury to redeem
legal tender notes whenever presented in sums
not less than 500 and mutiples thereof at pre-
MUM of gold at ten per cent. less interest at the
rate of Ok per cent. per annum, from the first
day of JAN 1875, to the date of putting this law
into operation, and diminishing this premium at
he same rate until the final resumption, chang ing
the rate of the premium demanded from time to
time as the interests amount to fourth of one
per cent.
] suggest this rate of interest ecause itwould
bring currency with gold at the date fixed by law
for final resumption. l recommend 10 per cent.
as the demand premium at the beginning because
believe that this rate would insure the retention
of silver in the country for change. The provis-
ions of the act will prevent combinations being
made to exhaust the Treasury of coin With
such law it is presumable that no gold would be
called for not required for legitimate business pur
poses. When large amounts of coin should be
drawn from the Treasury correspondinglv large
amounts of currency would be Withdrawn from
circulation, thus causing q sufficient stringency to
stop the outward flow of coin.
The advantages of currency of fixed and
known value would also be reached, in my OPP
inion, by the enactment of snch law, business
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 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 beyond that fixed
by law Tor final specie resumption to coin the sill
necessary to transact the business of the coun-
try.
There are now smelling furnaces for extracting
the silver and gold from the ores brought from
the mountain territories, in Chicago, st. Louis
and Omaha, and as much of the change required
will be wanted in the Mississippi Valley States,
and as the metals to be coined come from the
west of those states, aud as l understand the
charges for transportation of bullion from either
of the cities named, to the mint in Philadelphia or
New York city amounts to - for zach $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.
have yentured upon this subject with great
difidence because it is so unusual to approve a
measure, as most heartily do this even if no fur
Their legislation is attanable at the time, and TO
announce the fact by message. That l do so is
because feel that it is subject of such vital i'm
portance to the whole country that it should re-
ceive the attention of, and be discussed by Con-
grcss the people through the press, and in every
way to the end that the best and most satisfactory
course may be reached Of executing what deem
the most beneficial legislotion on the most vital
question to the interest and prosperity of the ma
ton.
(signed,) L. $. GRANT.
Executive Mansion, Jan. ii 1875.
SHERIDAN TO BELhNAP-A BLOODY