New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-01-15
BY TELEGRAPH,
FINANCIAL.

; FINANCIAL.
Message OF the President on Signing the
Eli for Resumption Of Specie Payment.
WASHINGTON, January 1.-THE President
! sent to the Senate to-day the following mes.
sage. accompanying his approval of the new
finance bill:
Tc tho Senate Of the United States:
Senate bill No. 1914, Ito provide for the
! resumption of specie payments" is before
ne. 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 be.
causa OF It's great Importance to the country
ut large and in order 20 suggest further
legislation which seems to me- essential to
make the law effective. 1t is a subject of
congratulatiOn that measure has become
law which fixes date when specie re-.
sumption shall commence, and implies an
obligation Oh the part Of Congress. If in its
power. to give such legislation as may
prove necessary to redeem this premise.
10 this end, | respectfully call your atten-
tentl0n to q few suggestions. First, the
necessity Tor an increased revenue to carry
out the obligation of adding to the sinking
land annually one per cent of the publo
debs, amounting now to about $3i Goo, COO
per annum, and to carry out the provisions
OF this measure to redeem under certain
contingencies $SO,000,00O of the present le-
gal tender and, without contingency, the
fractional currency now in circulation. How
to increase the surplus revenue
is FOR Congress to devise. but l will
venture to suggest that the duty on
tea and coitee might be restored
without permanently enhancing the
cost to consumers, and that tho
ten per cent horizontal reduction of the
tariff on articles specified in the law of
June 6, 1877. be repealed. The supply of
United States would in all probability be
advanced in price by adopting this measure,
but II IS known that the adoption of free
entry to those articles Of necessity did not
chespen them, but merely added to the
profits OF the countries producing them, and
OF the middlemen in those countries who
cave the exclusive trade in them.
Socond-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 huctuation in the
value OF the paper 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 go scarce as to
make the premium on gold Tor sufficiently
high to make il no longer profitable 20 buy
for export, thereby causing direct loss to
the community at large and great embar-
rassrnent to trade. As the present law com-
mands final resumption on the first day
CT January, 1879. and as the gold re-
celpts by the treasury are larger than the
gold payments and the currency receipts
than the currency payments, thereby max.
ing monthly 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 Treas.
uEy to redeem legal tender notes whenever
present.d in sums of not less than $lOO and |
nult!pies thereof, at premium for gold of |
ten per cent, less interest at the rate of two |
and o halt per cent per annum from the |
hrst day cf January, 1875, to the date of |
putting the law into operation, and dimin-
ishing this premium at the same rate until |
hual resumption, changing the rate of pre-
lnlum demanded from time to time. As the |
lnterest amounts to one quarter of one per
cent, suggest this rate Of interest because
Il would bring currency to par with gold at |
the date fixed by law for the final resump-
ton.
l suggest ten per cent as the demand
premium at the beginning, because believe
this rate would insure the retention Of
silver III the country for change. The pro-
visions of the third section Of the act will
prevent combinations being made to exhaust
The treasury of coin. With such a law, it
8 presumable that no gold would be called
'or not required for legitimate busine IS
purposes. When large amounts of coin
should be drawn from the treasury CORE.
'ponding amounts of currency would he
from circulation, thus causing
sufficient strlngency in currency to stop the
outward flow of coin. The advantages
II currency of fixed and known value
would also be reached in my opinion by the
lustries would revive, aud the beginning of
on firm basis would be reach
ii. Other means of increasing revenue
han those suggested should probably be
Ievised and also other legislation. In fact |
o carry out the first section of the act an
ther mint becames necessity. With the
resent facilities for coinage it would take
period probably beyond that fixed by
iw tor final specie resumption to coin
no silver necessary to transact the busi- {
ess Of tho country.
There arc now smelling furnaces for ex- {
ractipg the silver and gold from the ores {
rought from the mountain territories IN {
hicagO, St. Louis and Omaha. Three in
ne former city, and as much of the change t
3quired will be wanted in the Missssippi q
alley States, and as the metals to be coined
ome from the west of those States, and as | t
understand the charges for transportation | {
bullion from either of the cities named | /
} the mint in Philadelphia or to New York &
" amount to 81 for each $1,000 worth. il
ith an equal expense for transportation {
.ck, it would seem a fair argument in | 0
vor OF adopting one or more of those !
ties as the place or places for the estab- O
'hment Of new coming facilities. c
have ventured upon this subject with e
eat difidence because it is 80 unusual to a
,prove measure las l most heartily do b
is, even if no further legislation is attain. Il
lie at this time) and to announce the fact h
message, but do SO because feel that Il
is = subject of such vital Importance to O
Q whole country that it should receive | Il
o attention Of and be discussed by Con s
es and the people, through the press and | g
every way to the end that the beet and 81
'st satisfactory course may be reached of b
ecutiDg what l deem most beneficial Il
,islation on a most vital question to the | h
erests and prosperity of the nation. D
U. s. GRANT. IL
Executive Mansion. January IA. 1875. Il
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