The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1877-02-15
Resumption Of Specie Payments-Pres-
ident's Message.

WASHINGTON, Feb. 3.-The following
is the Presidents message to Congress on
the subject Of the resumption of specie pay
ments:
To the Senate and House Of Representatives.;
BY act of Congress approved JANUARY IA. 1875,
to provide for the resumption of specie payments,
the lst of January, 1873, 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 obligatory upon the Government
TO redeem its outstanding legal te der notes in
coin, on presentation, but it is certainly most
desirable, and will prove most beneicialto every
peeuniary interest Of the country, to hasten the
day when the payer circulation OF the country
ahd gold coin snail have equal values. At a
later day, if currency and coin should retain
bic to authorize direct resumption.
L believe the time has come when, by a
simple act of the Legislative branch of the Gov
ernment, this most desirable resu can be at
tanned. i am strengthened in this view by the
course trade has taken in the last two years. and
by tie 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 1902 g., 2. but our
experts include $40, Sc, 621 of specie and bull
lion in excess Of imports of the same cOmmodl-
ties. For six months. of the present fiscal year
from July |, 1873, to January l, 1871, the excess
of exports over imports amounted to $40, h44,-
$50, and the imports of specie and bullion
exceeded the exports of precious metals by
80, iJZ ,t4t IN IUb same time. IHt dCtudl tA
cess of exports over imports for six months,
exclusive of specie and bullion, amounted TO
tll3. 737 Gao; showing for the time being the ac-
emulation Of specie and bullion IN the country
amounting to more than g. o 0,0f0, in addition to
the natural product of these metals for the same
perod-a total increase of gold and silver for six
months not far short of $50, 0J0. 00l 1t is very
evident that unless this great increase OF precious
metals can be utilized at home in such way as
to make it in some manner remunerative to hold
ers il must seek foreign market, as surely as
would any other product of the soil or manufac
tory. Any legislation which will keep coin and
bullion at home will, in my judgment, soon bring
about practical resumption, and will add the
coin of the country to the circulating medium,
thus securing healthy imitation of sound cur
rcncy TO the great advantage of every legitimate
business interest. The act to provide for the re-
sumption of specie payments authorized the
Secretary of the Treasury to issue bonds
of either Of the descriptions named
in the act of Congress approved
refunding Of the national debt for not less than
par in gold. With the present value of AZ 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-
tion and keep excess of coin over the demand,
pending its permanent use as circulating me-
dium, at home. All that would be further re-
quired would be to reduce the volume of legal
tender notes in circulation. To accomplish this
would suggest an act authorizing the Secretary
of the Treasury to issue 4 per cent bonds with 40
years to run before maturity, to be exchanged
for legal tender notes whenever presented in
sums of $50, or any multiple thereof, the whole
amount of such bonds. however, not to exceed
$50 900 ,O0O. To increase the home demand
for such bonds would recommend that
they be available fer deposit in the United States
Treasury for banking purposes under the various
provisions of the law relating to National Banks.
l would suggest further, that National Banks
be required to retain a certain per cent. of the
coin interest received by them from bonds de-
posted with the Treasury to secure their circu
latiOn. IwOuld also recommend the repeal Of
the third section Of the joint resolution for the is
sue of silver coin, approved July %. 1876, limit
ing subsidiary coin and fractional currency to
so COO, 900. 1 am satisfied that if Congress will
enact some such law as will accomplish the end
suggested, they will give relief to the country in
Simultaneous in its effect and for which they viii
receive the gratitude of the whole people.
[Signedl U. S. GRANT.
Executive Mansion. February 8, 1871.