The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1877-02-08
RESUMPTION.
President. Message 70 Congress.

Yfesl0ent's message " COuSr0SSs
The President sent the following
message to Congress last Saturday, on
the subject of the resumption of specie
payments:
To the Senate and House of Representatives:
BY act of Congress approved January
14th, 1875, to provide for the resu p
tion of specie payments, the 1st of
January, 1879, is fixed as the date when
such resumption is to begin. 1t may
not be desirable to fix ALI earlier date
when it shall actually becrme obliga-
tory upon the government to redeam
outstanding legal tender notes on pre-
sentation, sut is certainly most desira-
BILE, and will prove mosl beneficial to
every pecuniary interest of the country
to hasten the day when the paper cir
culation of the country and gold shall
have equal value. AT Il later day, if
currency and coin should retain equal
values, it might become advisable TO
authorize or direct resumption. l be-
lieve the time has come when by a
simple act of the legislative branch of
the government this most desirable
result can be attained / am strength
eDed In this view by the course trade
has taken in the last two years, and
by the strength of the credit of the
For the fiscal year enping June 30th,
1876. the exports of the United States
exceeded the imports by $40, 2l3, lO2,
but our exports include SAC, ,569,62l of
specie and bullion in excess of imports
of commodities. For six months of
the present fiscal year, from July 1st,
| 1876, to January lst, 1877, the excess of
exports over imports amounted to
| SlG7, ,344 500, and imports of specie and
bullion exceeded the exports of pre-
cious metals by Sc, 1872, 147. In the same
time the actual excess OF exports over
| imports for six months, exclusive of
specie and bullion. amounted to $l13,
737 ,0I0, showing for the time being the
accumulation of specie and bullion in
the country amounting to more than
| S., ,000, 600 in addition to the products
of these metals for tile same period, a
| total increase of gold and silver for six
months not far short of $60, 1000, 900! 1t
| is very evident that unless the great
| increase of precious metals can be util-
iXed at home in such way as to make
it in some manner remuneratlve to
holders, it must seek foreign market
as surely as would any other product
of the soil or of manufacture. Any
legislation which will keep coin and
bullion at home will. in my Judgment,
soon bring about practical resumption
aud will add the coin of the country
to the circulating medium, thus secur-
| ing healthy initiation of sound curren
cy, to the great advantage of every le-
| gitimate business interest. The act tC
provide for the resumption of specie
payments authorized the Secretary O
the Treasury to issue bonds Of either
of the descriptions named in the act Ol
Congress approved July 4th, 1870, en-
A To I,<, ii
ing the national debt" for not less than
par in gold. With the present value
of four and half per cent. bonds in
the markets of the world, they coulC
be exchanged at par for gold, thus
strengthening the Treasury to mee
final resumption and to keep the excess
of coin over the demand, pending it.
permanent use, a circulating medium
at home. All that would further bt
required would be TO reduce the volume
of legal tender now in circulation. IL
accomplish this, [ would suggest al
act authorizing the Secretary of the
Treasury to issue four per cent. bonds
with forty years to run before maturity
to be exchanged for legal tender when.
ever presented in sums of $50, or any
multiple thereof; the whole amount
of such bonds, however, not to exceed
$3.50, 100000. To increase this home
demand for such bonds would recon-.
nend that they be available for deposit
l.. tiie United States Treasury for bank.
ing purposes, under the provisions OF
the law relating to national banks. ]
would suggest further that the nation
al banks be required to retain q certain
per cent. of the coin interest received
10y them from bonds deposited with
the Treasury to secure their circula
ton. l would also recommend the
repeal of the third section of the joint
resolution for the issue of silver coin,
approved July 22d, 1876, limiting sub
sidiary coin and fractional currency to
81, ,O00, 900. [ am satisfied that Congress
will enact some such law as will ac-
eomplish the end suggested. They
will give relief To the country instant
in it's effect, and for which they will
receive the gratitude of the whole peo
pie.
: ISignesH u. S. GRANT.
Executive NJ ,nsion, Feb. ). 1877.