Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1875-01-21
THE FINANCE BILL.
Message of the Pres
idcnt.
Important Recommendations

The Senate bill, No. 1914, ito provide
for the resumption Of specie psymcnts,"
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 its great importance 70 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 a
measure has become law which fixes a
date when specie resumption shall com,
uence, 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 | re-.
sp~octfully call your attention toa few sug,
gsstions.
First. The necessity for an Increased
revenue to carry out the obligation Of
adding to the sinking fund annually one
per cent. of the public del BIT, amounting
now to about thirty four million dollars
per annum, and to carry out the promises
Of this measure to redeem, under certain
contingencies, eighty million of the
present legal tenders, and without coutin>
gcrcy, the fractional currency now in cir
culation.
How to increase the surplus revenue il,
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, aud that
the ten per cent. horizontal reduction o.
the tariff on articles specified in the law
Of June 6, 1872, be repealed. The sup>
ply Of tea and coffee already in hand in
the United States would, in all probable
ity, bc advanced in price by adopting
this measure. But il is known that the
adoption Of free entry to those articles of
necessity did not cheaper them but mere
ly added to the profits of the countries
prod ucing them, or of the middlemen IN
these countries who have the exclusive
trade in them.
Second. The first section Of the bill
now under consideration provides that
the fractional currency shall be redeemed
in silver coin as rapidly as practicable
There is no provision preventing the
~fuctsation In the value of the paper cur
rency. With gold at a premium of any,
thing over ten per cent. above the curren-
rency in use, it is probablc-almost GER
taiu-that silver would be bought up for
expectation as fast as it was put out, uu>
ill change would become 30 scarce as to
make the premium on it equal to the
premium en- gold, or sufficiently high to
make it no longer profitable to pay for
export, thereby causing a direct loss to
the community at large and great EN-.
barrassment to trade.
As the present law commands final re.
sumption on the 1st day Of January,lS7
and as the gold receipts by the Treasury
are larger than the gold payments, and
the currency receipts than the currency
payments, thereby making monthly sales
Of gold necessary To meet current curreu-
cy expenses, it occurs to me that these
difficulties might be remedied BY author>
izing the Secretary of the Treasury to re.
deem lcgal-tender notes, Whenever pre-
sented, in sums Of not less than one hun.
dred dollars and multiple thereof, at a
premium for gold of ten per cent less
interest at the rate Of two and oue.balf
per cent. per annum from the first day Of
January, 1875. 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 in.
terest amounts to one quarter Of one per
cent. l suggest this rate Of interest be,
cause it would bring currency at par with
gold at the date fixed by law for final re.
sumption. | suggest ten per cent, as the
demand premium 1t the beginning, be.
cause | 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 to exhaust the Treasury of CON-
With such a 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, correspondingly large
amounts of currency would be withdrawn
from circulation, thus causing a sufficient
striugeucy in currency to stop the out,