The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-01-29
RESUMPTION.
The Finance Bill Approved by the
President.


To The Senate Of the United States
Senate bill No. 1914. to provide for the re-
sumption of specie payments, is before me-
and this day receives nv signature of approval
venture upon this unusual method of con-
veving notice Of my approval to the house in
which the measure originated. because of its
great importance to the country at large, in
order to suggest further legislation which
seems to me essential to make this law effect
ual. 1t is q subject OF cOngratulation that a
measure has become law which fixes the date
when specie resumption shall commence. and
implies an obligation on the part of congress
if in its power, to give such legislation as NAV
prove necessary to redeem this promise To
this end respectfully call your attention to a
few suggestions:
1. TIE necessity for increased revenue TO
carry ont the obligation Of adding to the sink
ing fund annually one per cent. The interest
on the public debt amounts now to S34, 900, 000
per dnnum, and to carry out the promises of
this measure to redeem under certain contin-
gencles SSO,OOOOOO OF the present legal-ten-
ders, and without contracting the national
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 consumers
and that ten per cent. reduction of the tariff
on articles specified in the law of June, 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be repealed.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 measure, but it is known that
the adoption of free entry to these articles Of
necessity did not cheaper materially, or en-
nance the profits of the country producing
them, or Of middlemen of those countries who
have the exclusive trade in them
2. The first section of the l. II now under
consideration, provides that the fractional
currency shall be redeemed In silver coin as
rapidly as practicable. There is no provision
preventing the fluctuati0n in the value of
paper currency, or the gold premium advanc-
Ing over ten per cent. above the currency in
Use. 1t Il probable, almost certain, that silver
would be bought up for expectation as fast as
1t 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 1t no longer profitable to buy for export
thereby causing direct loss to the community
at large, ami great embarrassment to trade
As the present law comma d. final resumption
on the nr-t OF January, 1879 and as the gold re-
ceIpts by the treasury are larger than the gold
payments, and the currency receipts than cur
rency payments thereby making monthly sa7 les
or gold ueCes- airy to meet current currency ex-
penses, It occurs to me that these difficulties
might be remedied by authorizing the secre-
tarv OF the treasury to redeem legal tender
notes whenever presented i'm sums Of not less
than Sl0I- and mu.iUIe- thereof. at the pre-
MUM for gold Of ten per cent. less interest
at the rate OF 25l per cent. per annum. from
the Let OF January, 1875. to the date of put
ting this law into operation and diminishing
suit; changing the rate Of premium demanded
from time 10 time as the interest amounts to
One-quarter or one per cont. / suggest this
rate OF interest, because il would bring Cur
rency at par with gold at the date fixed bv the
law Tor the final resumption. 1 suggest ten
per cent ~ the premium 1t the beginning
because believe this rate WOuld secure the
retention OF silVer IN the country for change
The PROVISIONS Of the third section of the act
VIII prevent combinations being made to ey-
II o law
II i pTesumsble that no gold wOud be called
Tor not required fO- legitimate business
purposes. When large amounts of coin
should he drawn from the treasury cores
pOndlngly large amounts Of currency would
be Withdrawn from circulation thus causing
sufficient strngenCv in currency to stop the
outflow OF CON. and the advantages OF cur
rency, OF fixed known value. would also be
reached In my opinion, by the enactment Of
such law, business and the industries would
revive, and the beginning of prosperity
on firm basis. w0ud 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
nr-t secIOu OF the act. Another mint be-
comes necessity With the present facilities
Tor coinage. 1t would take q period beyond
thar fixed by law for final specie resumption
to coin silver necessary to transact the bust
mes OF the country. There are now smelling
furnaces Tor extracting silver and gold from
ores brought from the mountain territories
INTO Chicago, St Louis and Omaha three in
the former city, and as much Of the change
required will be wanted in the Mississippi
valley states, and metals to be coined
come from west OF those states and as l
understood the charges for transportation
OF bullion nom either of the cities named
10 the mint at Philadelphia or New York
city, amount to four dollars for each one
thousand dollars worth. with an equal ev-
penHe Tor transportation back, 1t would seem
fair argument in favor Of adopting one or
more OF these cities rs a place or places for
the establishment Of new coinage facilities l
have ventured upon this subject with great
dlihdeuce, because 1t i unusual to approve =
measure, as L do this. If no further legislation
Ii attaInabie at this time and to announce the
TACT by message. But l do 80 because L feel
that l. a subject OF such vital importance 10
the whole country, that it should receive the
attention of, and be discussed bv congress
and the people. through the press and in every
Wav, to the end that the best and most satsfac-
tory course NAV be reached, Of executing what
deem most beneficial legislation on a most
vita. question, to the interests and rosperity
Of the nation. L s GRtST
Executive Mansion, Jan. IL 1875.