Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-02-05
PIESlDENT's MESS AGE
Resumption Of Specie
Payments.

WAsuINGToN, February 3. Tie following is
the Presidents message on the subject of the re.
sumption of specie payments
To the Senate and House of Representatives -
BY act of Congress approved January II, 1875
to provide for the resumption of specie PAYMENTS
the INST OF January, 1872 is fixed the date when
such resumption is to begin.
1t may not be desirable to fix an earlier date
when it shall actually become obligatory upor
government to redeem its outstanding legal ten
der notes ID com, on presentation, but il is mos,
certainly desirable and Will prove most beneficial
to every pecunaIy interest OF the country to has
ten the day when paper circulation of the country
and gold coin shall have equal value.
At later day, if currency and coin should re-
tam equal values, 1t might become advisable to
authorize OF direct resumption.
believe the time has come when by the simple
act of the legislative branch of government thi.
most desirable result can be attained. | an
strengthened in this Wow by the course trade has
taken IN the last two years, and by the strength
the credit of the l. j. at home aud abroad.
For the fiscal year ending June 30, 1876, the ex
ports OF the United states exceeded the imports
by $40 2l3 lJ2, but our exports include $40 800.
81 OF specie and bullion IN excess Of the imports o.
the same commodities.
For six months Of the present fiscal year. from
july 1876, to January /, 1871 the excess of eX.
ports over imports, amounted to SlU7 ,544 500, and
the imports OF specie and bullion exceeded the ex
ports OF previous metals by Sl92 III. In the same
time the actual excess of exports over the imports
Tor SIX months, exclusive Of specie and bullion
amounted to sll3,731 ,0i0, showing for the time
being the accumulation of specie and bullion in
the country amounting to more than So 600 600
IN addition to the national product of these metals
for the same period, total increase of gold and
silver Tor SIX months, not Tar short of 500, 900 COO
II Is very evident unless this great increase OF
precious metals can be utilized at home in such
way as to make it in some manner remunerative
to holders, il must seek foreign market as surely
as would any other product of soil or manufactorv
Any legislation which will keep coin and bullion
at home VIII in my Judgment soon bring about
practical resumption, and viii add coin of country
to circulating medium, thus securing healthy I'm.
fatiOn of sound currency, to great advantage OF
every legitimate business interest The act to
provide for resumption specie payments, authorz-
ed secretary treasury TO issue bonds of either OF
descriptions named in act of congress approved
July lth, 1870. entitled ian act to authorize re.
funding Of national debt for not less three per
in gold. With present value Of / - per cent.
bonds in the markets of the world they could be
exchanged at par for gold, thus strengthening the
treasury to meet final resumption and TO keep ey-
cess of coin over demand, pending its permanent
use as circulating medium at home. All that
would further be repaired would be to reduce
the volume of legal tender notes in circulation
10 accomplish this, would suggest an act author
zlng the Secretary of the Treasury to issue four
per cent. bonds with forty years to run before ma.
unity, to be exchanged for legal tender notes
whenever presented in sums of $50 or any multi.
pie thereof, the whole amount not to exceed Slj0
100000. To increase the home demand for bond:
| would recommend they be available for de-
post in the United States treasury for banking
purposes under the various provisions of law re.
lating to national banks. | would suggest fur
thcr that national banks be required to retain GER
tam per cent. of coin 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 subsidiary com, and fractional
currency to $50 000 900.
am satisfied that if Congress will inact some
such law as Will accomplish this, they will
give relief to the country, instant in its effect,
and Tor which they viii receive the gratitude OF
the whole people
(Sgned), L. S. GRANT.
Executive Mansion, Feb 3, 1877.