The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1877-02-05
SPECIE RESUMPTION.
President Grants Message On the
Subject.

WASHINGTON, Feb. 3.-The following is the
Presidents message on the subject Of the re-
sumption of specie payments:
To the Senate and House of Representatives:
By an act of Congress, approved Jan, 14th,
1875, $50 provide for resumption of specie pay
ments' the LIST OF JAM, 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 obligatory upon the gov
eminent to redeem its outstanding legal tender
notes in coin on preservation, but it is most GER
tainly desirable, and will prove most beneficial
to every pecuniary interest of the country, to
hasten the day when the paper circulation of
the country and gold coin shall have equal
values. At a later day, if the currency and
coin should retain equal values, it might
become advisable to authorize direct resump-
ton.
believe the time has come when, by SIM
pie act of the legislative branch of the govern
ment 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
at home and abroad. For the fiscal year end
ing June 30, 1876, the exports of the United
States exceeded the imports by 1920, 213, 102,
but our exports included $40,569,621 of specie
and bullion in excess OF imports of the COM
moditles. For the SIX months of the present
fiscal year, from July l, 1876, to Jan. l; 1877,
the excess of exports over imports amounted to
$107, 544, 1863, and the imports of specie and
bullion exceeded the exports of precious metals
by $192, III. In the same time the actual ex-
cess of exports over imports for the six months,
exclusive of specie and bullion, amounted TO
,040, showing for the time being in &C.
emulation of specie and bullion in the country
amounting to more than $6,0O0,000, 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 sh ort of $780, 000 600
1t is very evident that unless this great In
crease of precious metals Can be utilized at
home in such way as to make 1t in some man
ner remunerative to holders, i. must seek for
eign markets as surely as would any other pro-
duct of soil or mandatory. 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 coun
try to the circulating medium, thus securing a
healthy initiation of sound currency to the
great advantage of every legitimate business
interest. The act to provide for resumption of
specie payments authorized the Secretary
OF the Treas ury to issue bonds of ethics
OF the descriptions named in the act of Congresr
approved January 4th, 1870, entitled IAN act
to authorize the funding of the national debt"
tor not less than par in gold. With the present
value OF A. per cent. sbonds in the market of
the world, they could be exchanged at par for
gold, thus Strengthening the treasury to meet
coin over the demand, pending its permanent
use as circulating medium at home. All that
would further be required would be to reduce
the volume of the legal tender notes in circula-
ton. 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
legal tender notes whenever presented, in sums
of $50, or any multiple thereof, the whole
amount of such bonds however. not to exceed
$150,000,000. To increase the home demand
for such bonds, l would recommend they be
available for deposit in the United States Treas
ury for banking purposes. under the various
provisions of the law relating to national
banks.
would suggest, further, that national banks
be required to retain certain per cent. of col Il
interest received by them from bonds deposited
with the Treasury to secure their circulation.
would also recommend the repeal of the third
section of the joint resolution for the issue of
silver coin. approved July %, 1876, limiting the
subdiary coin and fractional currency to $780,
100000.
L am satisfied that if Congress will enact
such law as will accomplish the end suggest
ed, they will give relief to the country instant
in its effect, and for which they will receive the
gratitude of the whole people.
o. S. GRANT.
Executive Mansion, Feb. 6, 1877.