The home journal. (Winchester, Tenn.) 1858-188?, 1875-01-21
HARD MONEY.
The President Approves the Last
Financial Bill.
And Explains What lie Deems NccdfuI
TO Effect It's Purposes.

WASHINGTON, Jan. 14.-Tho president cent
to the senate to-day the following message
accompanying his approval Of the new finance
bill:
To ne Senate Of the UrHtcd lS0ieS
Senate bill No. 104i, to provide for the re-
| sumption of specie payments, is before me,
and this day receives my signature of approval.
| | venture upon this unusual method of con-
| veying notice of my approval to the house IN
| which the measure originated, because OF lts
| great Importance to the country at large, in
order to suggest further legislation, which
seems to me essential to make this law effect
| nal. 1t ia a subject Of congratulation that n
measure has become a law which fixes the date
| when specie resumption shall commence, and
| implies an obligation on the part of congress-
| il in its power to give snch legislation AZ may
prove necessary to redeem this promise. To
this end respectfully call your attention to Il
few suggestions
|. The necessity for ircreased 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 :3i, 900, 600
| per annum, and to carry ont tho promises Of
| this measure to redeem under certain cOntin
gencies ESQ. 900, 900 OF the present lega-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 tho tariff
| on articles specified in tho law OF June, 1872,
be repealed. Tho supply Of tea and coffee
already on hand in the United States, wouid,
in all probability, be advanced IN price by
adopting this measure. hut il is known that
the adoption of free entry to these articles OF
necessity did not cheaper materially, or en-
hance the profits OF the country producing
them, or of middlemen Of those countries who
have the exclusive trade in them
q Tho first section of tho bill now under
provides that the fractional
currency shall be redeemed in silver coin ~
rapidly IA practicable. There il no provision
preventing the huctuation in tho 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
it was put ont, until change would become 70
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 q direct loss to the community
Mt large and great embarrassment to trade
As the present law commands final resumption
on the first 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 sales
of gold necessary to meet current currency eX-
penses it occurs to me that these difficulties
might be remedied by authorizing the secre-
tary of the treasury to redeem legal tender
notes whenever presented IN sums OF not less
than 800 and multiples thereof, at the pre-
MUM for gold of ten per cent loss interest,
at the rate of % per cent. per annum. from
the 1st of January. 1875, to the date OF put
ting this law into operation, and diminishing |
this premium at tho same rate until final re-
suit 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. because it would bring cur
rency at par with gold at the date fixed by the
law for tho final resumption. | suggest ton
per cent as the premium ut tho 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
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 DO drawn from the treasury, cores
pondingly large amounts OF currency would
be withdrawn from circulation, thus causing
sufficient stringency in currency to stop the
outflow of coin. and tho 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 a firm basis, would be reached. Other |
means of increasing the revel ne, than those |
suggested, should probably be devised, and |
also other legislation, in fact, to carry ont the
first section OF the act. Another mint ne |
comes necessity. With the present facilities
for coinage, it would take a period beyond
that fixed by law for final specie resumptlon
to coin silver necessary to transact tho busl-
ness Of the country. There are now smelling
furnaces for 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 "a metals to be coined
come from west of those states, and ar L
understood the charges for transportation
| OF bullion from either OF the cities named
| to the mint at Philadelphiaj or New YORK
city, amount to four dollars for each one
| Thousand dollars worth. with an equal eN-
pense for transportation back, it would seem
a fair argument in favor OF adopting one or
more of these cities az 4 place or places Tor
the establishment OF new coinage facilities.
have yentured upon this subject with great
dilideuce, because it il unusual to approve a
measure, as do this, IL no further Legislation
il attainable at this time and TO announce the
fact by message. But do so because feel
that it is a subject Of such vital importance 20
the whole country that II should receive the
attention OF, and lie di-cussei by, congress
and the people, through the press and in every
yay 10 the end that the be 1t and most satisfac-
tory course NAV he reached. OF executing what
deem most beneficial legislation on most
Vital question, to the interests and prosperity
Of the nation. U. s. GRAST,
Executive Mansion, Jan. Il, 1875.