Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1877-02-09
SPECIE RESUMPTION

SPECIE RESUMPTION
Message from the President Urging It's
EARLY Adoption.
WASHINGTON, D. c., Feb. 3.-The
following is the Presidents message
to Congress on the subject of the re-
sumption of specie payment:
To the Senate and House # Rep
resemtutayes:: BY the act Of Con-
gress approved Jan. ID, 1875, tc pro-
vide for the resumption Of specie
payments, the LIST of January, 1879,
is fixed as the date when such re-
sumption is to begin. 1t may not
be desirable to fix an earlier date
when it shall actually become obi
gatory upon the Government to re-
deem its outstanding legal-tender
notes in coin on presentation, but 1t
is certainly most desirable, and ben
eticial to every pecuniary interest Of
the country, to hasten the day when
the paper circulation Of the country
and gold coin shall have equal val
ues. AT a later day, if currency and
coin should retain equal values, it
might become advisable to authorize
or direct resumption. believe the
tine has come when by the sim
pie act of the legislative branch OF
the Government this most desirable
result can be attained. am
strengthened in this view by the
course trade has taken in the last
two years, and by the strength OF the
credit OF the United States at home
and abroad.
For the fiscal year ending June
80, 1916, the exports of the United
States exceeded the imports by $780,
2l3,lO3, but our exports include $4O,-
56s,62l of specie and bullion in ex-
cess of imports of the same commod-
tiles. For six months of the present
fiscal year, from July l, 1876, to Jan.
|, 1877, the excess of exports over
imports amounted to sl7,544,s66,and
the imports of specie and bullion ex-
coed the exports of precious metals
by $5,l92,l47 in the same time.
The actual excess of exports over i'm
ports for the six months, exclusive
of specie and bullion, amounted to
sl3,737, O4O, showing for the time
being the accumulation of specie and
bullion in the country amounting to
more than Sc, 100000 in addition to
the national product of these metals
for the same period, total increase
of gold and silver for six months not
far short of $6O,OOO,OOO. 1t is very
evident that unless this great in
crease Of precious metals can be util-
lied at home in such way as to make
it in some manner remuneratlve to
holders it must seek a foreign market
as surely as would any other product
of the soil or manufacture. Any
legislation which will keep coin and
bullion at home will, in my juIg
ment, soon bring about practical re-
sumption, and will add the coin of the
country to the circulating medium,
thus securing healthy initiation of
sound currency, to the great advan-
tage OF every legitimate business in
terest.
The act to provide for resumption
of specie payments authorized the
Secretary of the Treasury to issue
bonds of either of the descriptions
named in the act of Congress APP.
proved July 4, 1870, entitled can
act to authorize the refunding of the
national debit for not less than par
in gold. With the present value of
II per cent bonds in the markets of
the world they could be exchanged
at par for gold, thus strengthening
the Treasury to meet final resump-
ton, and to keep the excess of coin
oyer the demand pending it's perma-
nent use as circulating medium at
home. All that would further be re-
quired would be to reduce the vol
ume Of legal-tender notes in circula-
ton. To accomplish this, / would
suggest an act authorizing the Secre-
tary of the Treasury to issue 4 per
cent bonds, with forty years to run
before maturity, to be exchanged for
legal-tender notes whenever present
ed in sums of $50, or any multiple
thereof, the whole amount of such
bonds, however, not to exceed $780,
100000. To increase the home de-
mand for such bonds, | would rec
ommend that they be available for
deposit in the United States Treasu-
ry for banking purposes under the
various provisions of law relating 20
the National Banks.
l would suggest further that Ma
tianal Banks be required to retain a
certain per cent Of coin interest re-
ceived by them from bonds deposit
ed with the Treasury to secure their
l would also recon-
mend the repeal of the third section
of the joint resolution for the issue
of silver coin approved July 22,ls76,
limiting the subsidiary coin and frac-
tional currency to $5O,ooo,ooo.
I am satisfied that if Congress
will enact some such law as will &C
complish the end suggested, they
will give relief to the country, in
slant in its effect, and for which
they will receive the gratitude Of the
whole people.
(Signed) us. GRANT.
EXECUTIVE MANSION Feb. 3, 1877.