Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1877-02-13
Message On the President.

Message Jy the President.
The following Is the Presidents mes
sage on the subject of the resumption of
specie payments:
To the Senate and House of Representa-
tiveS
BY an act of Congress, approved Jan.
l4th. 1873, ITO provide for resumption
of specie payments, the lst Of Jan, 1879,
isExed as the date when such resumption
is to begin. 1t may not be desirable to
fix an earlier date when it shall actually
become obligatory upon the government
to redeem Its outstanding legal tender
notes in coin on presentation, but 1t Is
most certainly desirable, and will prove
most beneficial to every pecuniary interest
Of the country, to hasten the day when
the paper circulation Of the country and
gold coin shall have equal values. And
at later day, if the currency and coin
should retain equal values, it might be-
come advisable to authorize . direct re-
sumption.
believe the time has come when by 4
simple act of the Legislative branch of
the government this most desirable result
can by 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 so, 1876, the exports Of the United
States exceeded the imports by Sl2O,-
2l3,l02, but our exports included $780,
569,62l of specie and bullion in excess
of imports Of the commodities. For the
SIX months. Of the present fiscal year, from
July /, 1876, to January l, 1877, the
excess Of exports over imports amounted
to Sl07 ,544, 200, and the imports Of spe-
Gle and bullion exceeded the exports Of
precious metals by Sl92,ll7. In the
same time, the actual excess Of exports
over imports for the six months, exclu-
sive Of specie and bullion, amounted to
Sll3,137 ,040, showing for the time be-
ing an accumulation OF specie and bullion
in the country amounting TO more than
S6,000,000, in addition to the national
product OF these metals, for same period
"a total increase Of gold and silver for
the six months not far short of $780,
100000.
1t is very evident that unless this great
increase Of precious metals can be utilized
at home in such way as to make 1t in
some manner remunerative to holders, it
must seek foreign markets as surely as
would any other product Of soil or manu-
factory, Any legislation which will keep
coin and bullion at home will in my judg-
ment soon bring about practical resump-
ton, aud will add the coin Of the country
to the circulating medium, thus securing
4 healthy Limitation" of sound currency
to the great advantage Of every legiti-
mate business interest. The act to pro-
vide for resumption Of specie payments
authorized the Secretary of the Treas
ury to issue bonds of either of the des-
criptions named in the act Of Congress
approved January 4th, 1870, entitled IAN
act to authorize the funding of the ma
tional debt, for not less than par in gold.
With the present value Of 1 per cent
bonds 10 the market Of the world they
could be exchanged at par for gold, thus
strengthening the treasury to meet the
final resumption and to keep the excess
Of coin over the demand, pending, It's per-
manent use as circulating medium at
home. All that would further be reluir.
cd would be to reduce the volume Of the
legal tender notes in circulation. To ac-
complish this | would suggest an act au-
thorizing the Secretary OF the Treasury
to issue four per cent bonds with forty
years to run before maturity, 20 be ex.
changed for legal tender notes, whenever
presented in sums of $50 or any multiple
thereof, the whole amount of such bond:
however not to exceed Sl50,000,000
To increase the home demand for sucf
bonds would recommend they be avail
able for deposit in the United States treas
ury for banking purposes, under the var
iOus provisions Of the law relating to ma
tional banks.
would suggest further that nationa
banks be required to retain certain Pc
cent. on coin interest received by then
: from bonds deposited with the Treasury
to secure their circulation. | would ais
recommend the repeal Of the Sd sec. o
the Joint resolution for the issue of silve
coin approved July %, 1876, limiting
the subsidiary coin and fractional currenc,
to s60,000,000.
l am satisfied that if Congress will en-
act some such law as will accomplish tn
end suggested, they will give relief Il
the country instant in its effect, and fol
which they will receive the gratitude o
the whole people.
U. s. GRANT,
Executive Mansion. Feb. 8. 1877.