Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1875-01-15
The Finance BiiI-President'S Mes.
SAGE

10 the Senate Of the United States:
Senate bill No. l044, ITO provide tor the re-
sumption Of specie payments, IS before me,
and this day receives my signature OF approval.
[ venture upoo this unusual method or con-
veyng the notiee Of approval to the House 10
which the measure originated because OF its
great importance to the country at large, and
10 order TO suggest further legislation which
seems to me essential to make this law ettec-
tive.
It's subject of cougratulation that meas
urc has become law which fixes date when
specie resumption shall commence, and lm-
plies an obligation 90 the part of Congress, If
10 its power, to give such legislation as may
prove necessary 10 redeem this promise. 10
this end respectfully call your attention to
few suggestions
First. The necessity for an increased revenue
to carry out the obligation of adding to the
sinking fund annually one per cent. OF the pub
he debt. amounting DOW to about thlrty-tour
million dollars per anDum, and TO carry out the
promises of this measure to redeem, under GER
tain contingencies, eighty millions OF the pres
ent legal tenders, aud, without contingency,
the fractional currency now 10 clrculatlon
How to Increase the surplus revenue Is tor
Congress to devise. but | will venture to sug.
gest that the duty on tea aud coffee might be
restored without permanently enhancing the
| cost to the CONSUMERS, and that the ten per
cent horizontal reduction OF the tariff on artl-
c!ss specified in the law Of June 6, 1872, be re-
pealed. The supply OF tea ADD coffee already
on hand 10 the United States would, 10 all
| probability, be advanced In price by adopting
| this measure; but it is known that the adoption
! of free entry to those articles OF necessity did
Il l,,t dad RI he
profits OF those countries producing them, or OF
the middle men in those countries who have
the exclusive trade in them.
| Second. The first section of the bill DOW un-
der consideration provides that the fractional
currency shall re redeemed in silver coin as
RAPIDLY "a practicable. There is 90 provision
| Preventing the fucruatlon 10 the value of the
raucr currency. With gold at premium OF
/ ANYTHING over ten per cent above The currency
| in use it is probably almost certain that silver
would be bought up for expectation as fast as
it was put out, until change would become SC
scarce as to make the premium on 1t equal to
the premium on gold, or sufficiently high to
! make it no longer profitable to buy for export;
! thereby causing L direct loss to the community
al large, and great embarrassment TO trade.
As the present law mmads final resumption
on The first day Of January, 1879, and as the
! gold cceiptS by the Treasury are larger thar
the gold payments. aud the currency receipts
| than the currency payments, thereby makDg
mouthly sales of gold necessary to meet current
currency expenses, 1t occurs to me that these
! difficulties might be remedied by authorizing
The Secretary Of the Treasury to redeem lega
| tender notes Whenever presented IN sums or mol
! less than one hundred dollars and multiple:
! thereof, at premium for gold at 10 per cent,
! less interest at The rate Of two and one halt per
cent. per annum from the first day of January,
| 1873, TO the date of puttitg this law into opera
| ton, and diminishing this premium at the same
! rate until tiual resumption; changing the rate
| Of premium demanded from time to time a:
! the interest amounts to one-quarter OF one pei
! cent. suggest this rate OF Interest because II
| would brog currency at par with gold at the
date fixed by law for fual resumption. | sug
gest ten per cent. as the demand premium al
! the be ginning because believe this rate would
insure the retention Of silver in the country fol-
change.
The provisions of the third section of the act
will prevent combinations being made to ex-
haust the Treasury of coin. With such law
it is presumable that no gold would be called for
not required for legitimate business purposes.
When large amounts of coin should be drawn
from the Treasury, correspoudogly large
amounts of currency would be withdrawn from
circulation, thus causing a sufficient stringency
in currency to stop the outward flow Of cola.
Tie advantages of currency of fixed,
known value would also be reached. La my
Opinion, by the enactment of such law business
and Industries would revive, and the beginning
of prosperity, on firm basis, would be reached.
Other means ofiucrea5ing revenue than those
suggested should probably be devised, and al
so other legislation. 10 fact, to carry out the
first section Of the act, another mint becomes a
necessity With the present facilities for coin
age il would take period probably beyond
that fixed by law for 6oa specie resumption to
coin the silver necessary to transact the bust
ness Of the country
There are now smelling furnaces for extract
ing the silver aud the gold from the ore brought
from the mountain Territories, in Chicago, ST.
Louis aud Omaha-three 10 the former city
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
of those States, aud as [ understand the
charges for transportation OF bullion from eth
er OF the cities named to the Mint 10 Phllade-
phia or New York city, amount 10 four dollars
for each one thousand dollars worth, with an
equal expense for transportation back, 1t would
seem strong argument 10 favor Of adopting
one or more of these cities as the place or places
for the establishment of new coiong facilities.
have ventured upou this subject with great
ditfideuce because it is so unusual to approve
measure as | most heartily do this-even if
no further legislation is attaiuable at this time.
and to announce the fact by message. But L
do so because feel that it is subject of such
vital importance to the whole country that
it should receive the attention OF aud be dis
cussrd by Congress and the people, through
the press, and in every way, to the end that the
best and most satisfactory course may be rech-
ed, of executing what | deem most beneficial
legislation on most vital question to the 10
tercst and prosperity of the nation.
y. S. GRANT
EXECUTIVES MANSION, January IA, 1875
ANOTHER WAR CLAIM DISALLowED. The
Committee on War Claims has decided ad
versely to the claim of " 6. Austin. The
claimant was the owner of tract of laud on