The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1875-01-22
NATIONAL FINANCES.

Views of the Pre- sident-He Offers Some
Suggestions Regarding the New FL
nance BiIl-AIsO FavOrs the Restora-
ton 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 approva, of the measure he sent to the
Senate the following message embodying his
views OF it, and the Legislation necessary to
render it effectual:
To the Senate of the United States:
Senate bill No: LOLA, to provide for the re-
sumption or 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 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 the measure has become q law. which
fixes the date whom specie resumption shall
commence, ard 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 & few suggestions
/. The necessity for increased reserve 10
carry out the obligation Of adding to the sink
ing fund annually ono per cent. OF the public
debt, amounting now to about s34, 900, 600 per
annum, and to carry out the promises OF this
measure to redeem, under certain contin-
gencies $50 000 900 of the present legal
tenders, and without contingency the frac-
tional currency now in circulation. How to in
crease tho surplus revenue is for Congress to
devise, but / 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fed in the law OF June &. 1872 be repealed.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.
2 The first section CT 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 III use. 1t is
probable. almost certain, that silver would
be bought up for expectation as fact
as it was put out, until change
would become 80 scarce rs to make
the premium on it equal to the premium OH
gold. or sufficiently high to make it no longer
profitable to buy for export, thereby causing
a direct loss to the community at large and
great embarrassment to trade. AS the pres
ent law commands the final resumption on
the LIST of January, 1879, and az 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
thorZing the Secretary OF the Treasury to re-
deem legal tender notes whenever presented
in sums not lese than 800 and multiples
thereof, at a premium for gold Of 10 per cent,
less interest at the rate OF "a per cent. per
annum, from the LIST of January, 1875, to
date putting this law into operation and
diminishing this premium at said rate until
the final resumption, changing the rate OF
premium demanded from time to
time, as the interest amounts to
one-quarter Of one per cent. L sug- |
gest this rate of interest because 1t 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 believe this rate wonld |
insure the retention Of silver in the country |
for change The provisions OF the third gee
ton of the act will prevent combinations
made to exhaust the Treasury OF coin. With |
such a law it is presumable that no gold |
would be called for not required for legiti- |
mate business purposes. When large |
amounts of coin ehould be drawn from the |
Treasury, correspondingly large amounts of |
currency would be Withdrawn from circula- |
ton, thus causing sufficient stringency in |
currency to stop the outward flow Of coin. |
The advantages Of currency Of 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- |
lation. In fact, to carry out the first sec
ton of the act another mint becomes
necessity. With the present facilities for
coinage 1t would take period probably be-
yend 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
and gold from ores brought from the noun