Bradford opinion. [volume] (Bradford, Vt.) 1874-1881, 1877-02-17
SPECIE RESUMPTION.
Isssage Of President traMt-A Fsur Per
Cent. bond Recommended Exchangeable
for Legal Tender Notes,

!
Msssays Of President t:rant-A Fsur Pc
Cent. bond Recommended Exchangeabl,
for Legal Tender Notes.
The following ia the Presidents mes
sage on the resumption OF specie pay
ments
TO the Senate and House Of Repre-
sentatipes' BY the net of Congress
approved January Ii, 1875, "Toprovid,
for the resumption Of specie payments,
the first OF January, 1870, is fixed rs thu
date when such resumption is to begin
II may not be desirable to fix IN earlier
date when it shall actually become obi,
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 pecupiary 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 a SIM
pie 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
III 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, $685. 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 !, 1876, to January l, 1877,
the excess of exports over imports
amounted to Sl07, 5H, $50, and the i'm
ports of specie and bullion exceeded the
imports of the precious metals by Sc, 1922
LAT in the same time. The actual excess
of exports over imports for the six
months, exclusive of specie and bullion,
amounted to $113. 1877, 040, showing for
the time being the accumulation of
specie and bullion in the country amount
ing to more than SO, 900, 600, 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 500, 0O0,0O0. II is evident that
unless this great increase of the precious
metals can be utilized at home in such
way rs to make it in some manner re-
munerative to holders, it must seek
foreign market as surely rs would any
other product of the soil or manufactory.
Any legislation which will keep coin and
bullion ut 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 initiation 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 in
the markets of the world they could be
exchanged at par for gold, thus strength
ening the treasury TO meet the final re-
and to keep the excess of coin
over the demand, pending its permanent
use, a circulating medium Mt home. All
that would further be required would be to
reduce the volume of legal tender notes
i'll circulation. To accomplish this. |
would suggest an act authorizing the
Secretary of the Treasury to issue four
per cent. bonds, with forty years to run
before maturity, to be exchanged for lc-
gal tender notes whenever presented in
sums OF $50 Or any mulptiple thereof,
the whole amount of such bonds, how
ever, not to exceed $3.50, 900, 600 To in
crease the home demand for such bonds !
would recommend that they be avail
able for deposit in the United States
for banking purposes under the
various provisions OF the law relating to
national banks.
| would suggest further that national !
banks he required to retain certain per
cent OF the coin interest received by them
rom the bonds deposited by them with
-he treasury to secure their circulation. .
would also recommend the repeal of
he third section of the joint resolution
or the issue of silver coin, approved the
day OF July, 1876, limiting
he subsidiary coin and fractional cur
'ency to $50, 100000. lam satisfied that
+ Congress viii enact some such law as
will accomplish the end suggested they
will give a relief to the country instant in
is effect and for which they will receive
he gratitude of the whole people.
U. S. GRANT.
Executive Mansion, Feb. g. 1877.