Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1877-02-17
SPECIE RESUMPTION.
Message of President Grant--A Four Per
Cent. Bond Recommended EXchangeable
for Legal Tender Notes.

for Legal Tender Notes.
The following is the Presidents mes
sage on the subject of the resumption OF
specie payments:
To the Senate and House Of Repre-
SeJttdtiues: BY the act of Congress
approved January IA, 1875, TO provide
for the resumption of specie payments, "
the first of January, 1879, 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 obi
gatory upon the government to redeem
its outstanding legal tender notes in com
ON presentation, but it is certainly most
desirable and viii prove most beneficial
to every pecrniary interest of the eoun-
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-
1ieve the time has come when by 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
in the last two years and by the strength
of the credit of the United States OF home
and abroad.
For the fiscal year ending June 3d.
1876, the exports of the United States
exceeded the imports by $l20, ,213, 1O2
but our exports include $40, ,569, ,62l o.
specie and bullion in excess of the i'm
ports of the same commodities. For the
six months of the present fiscal veal
from July l, 1876, to January |, 1877
the excess of exports over imports
amounted to $107, 544, 500, and the i'm
ports of specie and bullion exceeded thu
imports of the precious metals by So, 1872,
lat in the same time. The actual excess
of exports over imports for the 81,
months, exclusive of specie and bullion
amounted to $113, 1877 ,040, showing fo
the time being the accumulation o
specie and bullion in the country amount
ed to more than Sc, 6,000,000 in addition
to the national product of these metal
for the same period-a total increase @
gold and silver for the six months not ia
short of $60,000, 1000. 1t is evident, tina
unless this great increase of the preciou
metals can be utilized at home in such
way as to make it in some manner re
mlnerative to holders, it must seek
foreign market as surely as would an
other product of the soil OF manufactory
Any Legislation which will keep coin an
bullion at home will, in my judgment
soon bring about practical resumption
and will add the coin Of the country
the circulating medium, thus securing
healthy "infation of a sound crrrenc
to the great advantage Of every legit
mate business interest.
The act to provide for the resumptio
of specie payments authorized the secr'
tary of the treasury to issue bonds
either of the descriptions named in ii
act Of Congress approved July 4th, 1871
entitled can act to authorize the reflnt
ing of the national debt" for not LEI
than gold. With the present value
the four and one-half per cent. bonds
the markets of the world they could /
exchanged at par for gold, thus strength
ening the treasury to meet the final +
sumption and to keep the excess Of co
= over the demand, pending its permanel
use, circulating medium at home. A
that would further be required would |
to reduce the volume of legal tend
\ \ notes in circulation. To accomplish thi
! i would suggest an act authorizing Il
: secretary of the treasury to issue foI
!, per cent. bonds, with forty years to II
before maturity, to be exchanged for !
, gal tender notes whenever presented
) sums of $50 or any multiple thereof, Il
, whole amount of such bonds, howeve
! not to exceed $3.50, 900, 900. To increa
the home demand for such bonds [ won
recommend that they be available for d
posit in the United States treasury f
banking purposes under the provisio
of the law relating to national banks.
a Iwould suggest further that nation
e banks be required to retain certain p
e cent of the coin interest received by the
t from the bonds deposited with thetreasu
: to secure their circulation. | would al
n recommend the repeal of the third secti
y of the joint resolution for the issue of s
= yer coin, approved, July, %, 1876, lin
s ting the subsidiary coin and fraction
n currency to $50, ,0O0,0 900. I am satisfi
o that if Congress will enact some such Ii
|, as will accomplish the end suggest
/ they will give relief to the count
s instant in it's effect and for which th
e will receive the gratitude of the wht
: people. u. S. GRANT.
h Executive Mansion, Feb. 3, 1877.