Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1877-02-09
THE PRESTDENT',y MESA GE,
On the Resumption OF specie Payments.
10 The Senate and House Of Representatives,


TO The Senate and House Of Representatives.;
BY the act OF Congress approved Jan. II,
1875, "To provide for the resumption 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 II x
an earlier date when il shall actually be-
como obligatory upon the Government to
redeem lis outstanding legal-tender notes
In coin on presentation, but it is certainly
most desirable, and will prove most beuc.
fetal TO every pecuniary interest of the
country, TO hasten the day when the paper
circulation of the country and the gold coin
shall have equal values. At a later day, II
currency and coin should retain equal val
ues, it might become advisable u authorze
or direct resumption. l believe the lime
has come when by simple act Of The legis-
lative 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 tte United
States at home.an abroad. For the fiscal
year ending June 80, 1876, the exports Of
the United States exceeded the imports by
Sl2O, 2l3, l02, but our exports include S4O,-
5G9,62l of specie and bullion in excess Of
the imports Of the same commodities. For
the six months of the present fiscal year,
from July l, 1876, to Jan. l, 1877, the excess
Of the exports over imports amounted 10
sl07, 54I, $50, and the imports Of specie and
bullion exceeded the exports of the pre-
cious metals by 50, 1902, l47 in the same time.
The actual excess OF exports over imports
for the six months, exclusive OF specie and
bullion, amounted to Sll3,737, $40, showing
for the Time being the accumulation Of spe-
Gle aud bullion IN the country amounting
TO more than $4,000 900, in addition 10 the
national product of these metals for the
same PERIOD total increase Of gold and
silver for the six months not far short Of
SG0,0O000O. 1t is evident that, unless this
great increase Of The precious metals can be
utilized at home in such way as TO make
ii in some manner remunerative to holders
ii must seek foreign market, as surely as
would any other product OF the soil or man.
ufactory. Any legislation which will keep
coin and bullion at home will, in my judg-
ment, soon bring about practical resump-
ton, aud will add the coin Of the country
10 the Giro ulating medium, thus securing
healthy "inllation" OF sound currency,
TO the great advantage OF every legitimate
business interest. The act to provide for
tue resumption Of specie payments author
lied the Secretary OF the Treasury 10 issue
bonds Of either of the descriptions named
in the act of Congress approved July4. 1870,
entitled IAN act TO authorize the refundiDg
Of the national debt" for not less than par
in sold. With The present value Of the a.
per cent bonds in the markets of the world,
they could Go exchanged at par for gold,
thus Strengthening the treasury TO meet
final resumption and to keep the excess Of
coin over the demand, pending lis perma-
nent use, u circulating medium at home.
All that would further be required would
be TO reduce the volume Of legal-tender
notes in circulation. To accomplish this /
would suggest an act authorizing the Sec
rotary Of the Treasury to issue per cent
bonds, with 40 years to run before maluri-
ly, TO lie 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 $3.50, 900, 600.
To increase the home demand for such
bonds | would recommend that they be
available for deposit in the United States
Treasury for banking purposes under the
various provisions Of the law relating TO
national banks. I would suggest, further,
that national banks he required TO retain a
certain per cent ofthe coin interest rcceiy ed
by them from the bonds deposited with the
treasury TO secure their circulation. 1
would also recommend the repeal OF the
third section OF the joint resolution for the
issue Of silver coin, approved July %, 1876,
limiting the subsidiary coin and fractional
currency to 1000, 900.
am satisfied that if Congress will enact
some such law as will accomplish the end
suggested, they will give relief to the
country, instant in its effect, and for which
they VIII receive the gratitude of the whole
people. U. 5. GRANT.
Executive Mansion, Feb. 3, 1877.