The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1877-02-08
.sai's = 'r ss I
Tho Pfesident's Views on Specie Re-
sumption.

WAaHmefux, Feb. 4
The following isl the Presidents Mes.
sage to Congress on the subject Of the re-
sumption Of specie payment:
| To the Senate and House Of Representatives:
By tho act Of Congress, approved Jan. "A
1875, to provide for the resumption Of specie
payments, the first Of January, 1879, is fixed
rs the date when such resumption ID to
begin. It may not be desirable to fx an
earlier date when 1t shall actually become
obligatory upon the Government TO redeem
Its outstanding 1egal-tcnder notes III coin ON
presentation, butt tia certainly most desirable,
ary Interest Of the country, to hasten the day
when the paper circulation of the country
and gold coin shall have equal values. At q
later day, IL currency and coin should retain
equal values, It might become advisable to
authorize or direct resumption. believe
the time has come when BY the simple 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 ,he fiscal year ending juno 80, 1875,
the exports Of the Unit d States exceeded
include 80, ,589, Gal Of. specie and bullion
In excess of imports Of the Same commodi-
ties. For six months of the present fiscal
year, from July l., 1876, to Jan. /, 1877, the
excess OF exports over imports amounted
to 417,544, ,669, snd the imports of specie
and bullion exceeded the exports Of
lrecious metals by %, 192,147 in the
ports over imports for the six months,
exclusive Of specie and bullion, amounted
to SIS, ,737, ,O4O, showing f,r the time being
the accumulation Of specie and bullion In
the country amounting to more than 90, 900, :
00J in addition to the national product Of
these metals for the same period, total
incr ase Of gold and silver for six months
not far short of $50, ,000. 900. tits 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 remuner-
ative to holders, 1t must seek foreign mar
ket as surely as would any other product Of
the soil or manufacture. Amy Legislation
viii, in my Judgment, soon bring about
practical resumption, aud will add the coin
Of the country to the circulating medium,
thus securing healthy imitation of sound
currency to great advantage Of every legiti-
mate business interest
Gle payments authorized the Secretary ol
the Treasury to issue bonds Of either of the
descriptions named in the act of Congress,
approved July 4, 1870, entitled "An act to
authorize the refunding Of the Ma
tional debt, for not less than par in gold
With The present value offour and half per
cent bonds in the markets of the world, they
could be exchanged at par for gold, thus
Strengthening the Treasury to meet final
resumption, and to keep the excess Of coin
over the demand pending its permanent use
as circulating medium at home. All that
would further be required would be to re-
duce the volume of legal-tender notes in cir
culation. To accomplish this, ] would sug-
gest an act authorizing the Secretary Of
the Treasury to issue four per cent.
bonds, with forty years to run be-
fore maturity, to be exchanged for
legal-tcnder notes whenever presented In
sums Of fifty dollars, or any multiple thereof,
the whole amount of such bonds, however,
not to exceed $50, ,OO0, 600. To increase the
home demand for such bonds, would rec
ommend that they may be available for de-
post in the United States Treasury for bank.
ing purposes under the various provisions Of
law relating to the National Banks.
/ would suggest further that National
Banks be required to retain certain per
cent of coin interest received by them from
bonds deposited with the Treasury to secure
their circulation. Iwould also recommend
the repeal Of the third section of the joint
resolution for the issue of silver coin, ap-
proved July %, 1875, limiting the subsidiary
coin and fractional currency to $50000, 900.
] am satisfied that ii Congress will enact
some such law as will accomplish the end
suggested, they will give relief to the coun-
try, instant in its effect, and for which they
will receive the gratitude Of the whole peo-
pie. (Signed) U. s. GRANT.
ExzcurvE IAnssoz Fob. 4 isT7.