The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-01-16
FROM WASHINGTON.
WASHINGTON, January 10, 1875.
Presidents Message ON the Finance



To the Senate of the United States: Senate
bill No. 1914, "to provide for the resump.
ton of specie payments" is before me, and
this day receives my signature Of approval.
| venture upon this unusual method of
conveying the notice Of approval to the
House, in which the measure originated,
because of lis great Importance to the coun'
try at large, and in order to suggest further
legislation, which seems to me essential to
make this law effectual.
1t is subject of coDgratulation that a
measure has become law which fixes q
date when specie resumption shall com.
mence, 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 cali
your attention to few suggestions.
First. The necessity foran increased reve-
nue. to carry out the obligation of adding to
the sinking fund annually one per cent. OF
the public debt, amounting now 10 about
thirty. four million dollars per annum, and
to carry out the promises of this me asure 10
redeem, under certain contingencies, eighty
millions 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
permanently enhancing the cost to the con.
sumers, and that the ten per cent. horizontal
reduction of the tariff on articles specified in
the law of June 6, 1872, be repealed.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 mea.
sure. But it is known that the adoption OF
free entry to those articles Of necessity did
not cheaper them, but merely added to the
profits of the countries producing them, or
of the middlemen in those countries who
have the exclusive trade in them.
Second. The first section of the bill now
under consideration provides that the frac-
tional currency shall be redeemed in silver
coin as rapidly as practicable. There is no
provision preventing the t1uctuation in the
value Of the paper currency. With gold at
premium of anything over ten 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, IN.
til 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 export, thereby causing
QlTecL lOSS W LuC Ut SC, anu
q great embarrassment to trade.
AS the present law commands final re-
sumption on the 1st day of January, 1879
and as the gold receipts by the Treasury are
larger than the gold payments, and the cur.
rency receipts than the currency payments
thereby making monthly sales of gold neces
sary to meet current currency expenses, il
occurs to me that these difficulties might be
remedied by authorizing the Secretary OF the
Treasury to redeem legal.tender notes when
ever presented, in sums of not less than one
hundred dollars and multiples thereof, at
premium for gold of ten per cent, less interest
at the rate of TWO and One-half per cent. pei
annum, from the 1st day Of January, 1910, to
the date of putting this law into operation
and diminishing this premium at the same
rate until final resumption, 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 be-
cause it would bring currency at par with
gold at the date fixed by law tor final re
sumption. suggest ten per cent. as the de
maud-premium at the beginning because
believe this rate would insure the retention
of silver in the country for change.
The provisions Of the third section OF the
act will prevent combinations being made te
exhaust the Treasury of coin. With such
law it is presumabls that no gold would b'
called for not required Tor legitimate business
purposes. When large amounts OF coil
should be drawn from the Treasury CORE
spondingly large amounts of currency Woult
be withdrawn from circulation, thus CAUSING
a sufficient stringency in currency to stop To-
outward flow OF coin.
The advantages of a currency OF fxed
known value would.also be reached. In NJ