The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1877-02-15
SPECIE RESUMPTION.
Message of President Grant--A Four Per
Cent. Bond Recommended ENchnnGenblc
for Legal Tender Notes.

Message of President Grant--A Four Per /
Cent. Bond Recommended ENchnngeabic |
for Legal Tender Notes.
The following is the Presidents mes
sage on the subject of the resumption of
specie payments:
To the Senate and House of Repre-
sentatives. BY the act of Congress
approved January IA, 1875, "To provide
for the resumption Of specie payments"
the first of January, 1879, is fixed as the
date when such resumption is to begin.
1t may not be desirable to fix an earlier
date when it shall actually become obli
gatory upon the government to redeem
its outstanding legal tender notes in coin
on presentation, but it is certainly most
desirable and will prove most beneficial
to every pecuniary interest of the coun-
try to hasten the day when the paper
circulation of the country and the gold
coin shall have equal values. At later
day if currency and coin should retain
equal values it might become advisable
to authorize direct resumption. l be-
lieve the time has come when by SIM
pie act of the Legislative branch of the
government this most desirable result
can be attained. L am strengthened i'll
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,
1876, the exports Of the United States
exceeded the imports by $120, ,213 102,
but our exports include $40, $50, ,621 of
specie and bullion in excess of the i'm
ports of the same commodities. For the
six months of the present fiscal year
from July l, 1876, to January l, 1877,
the excess of exports over imports
amounted to $107, ,544, 1863, and the i'm
ports of specie and bullion exceeded the
imports of the precious metals by Sc, 1922
147 in the same time. The actual excess
of exports over imports for the six
months, exclusive of specie and bullion,
amounted to S113, 737, ,040, showing for
the time being the accumulation of
| specie and bullion nthe country amount
ing to more than $4,000, 900, in addition
| to the national product of these metals
! for the same period-a total increase of
! gold and silver for the six months not far
short of $60,000,000. 1t is evident that
unless this great increase of the precious
metals can be utilized at home in such q
way as to make it in some manner re-
| W IL lltt5l SCCh u
foreign market as surely as would any
other product of the soil or manufactory.
Any legislation which will keep coin and
bullion at home will, i'll my Judgment,
soon bring about practical resumption,
and will adI the coin OF the country to
the circulating medium, thus securing q
healthy " infation' of a sound currency
to the great advantage of every legiti-
mate business interest.
The act to provide for the resumption
Of specie payments authorized the secre-
tary of the treasury to issue bonds of
either of the descriptions named in the
act of Congress approved July 4th, 1870,
entitled "An act to authorize the refund
ing Of the national debt" for not less
than gold. With the present value of
the four and one-half per cent. bonds i'll
the markets of the world they could be
exchanged at par for gold, thus strength.
ening the treasury to meet the final re-
sumption and to keep the excess of coin
over the demand. pending its permanent
use, a circulating medium at home. AL
that would further be required would be
to redu the volume OF legal tender
notes in circulation. To accomplish this
! would suggest an act authorizing the
secretary of the treasury to issue four pei
cent. bonds, with forty years to r1lr
before maturity, to be exchanged for le
gal tender notes whenever presented il
sums of $50 or any multiple thereof, th'
whole amount of such bonds, however
net to exceea $3.50, 100000. To increase
the home demand for such bonds 1 woult
recommend that they be available for de
posit in the United States treasury fo
banking purposes under the various pro
visions of law relating to national banks
l would suggest further that nationa
banks be required to retain a certain
per cent of the coin interest received
from the bonds deposited by them will
the treasury to secure their circulation
I would also recommend the repeal O
the third section OF the joint resolution
for the issue of silver coin, approved Jul,
%, 1876, limiting the subsidiary coin an'
fractional currency to 50,000,000 | au
satisfied that if Congress will enact som
such law as will accomplish the end sug
gested they will give relief TO the countlr
: instant in its effect and for which they vii
receive the gratitude of the whole people
U. S. GRANT.
Executive Mansion, Feb. 3, 1877.