Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1877-02-07
Presidents Message,
ON THE RESUMPTION OF SPECIE PAYMENTS.

ON THE RESUMPTION OF SPECIE PAl MENTS.
To THE SENATE AND HOUSE OF REP.
REsENTATIvEs 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 obligatory
upon the government TO redeem lis out
standing legal-tender notes in coin on pre-
sentation, but it is beneficial to every Pc
cuniary interest of the country to hasten
the day when the paper circulation of the
country and the gold coin shall have equal
values. At II later day, if currency and
coin should retain equal values, it might
become advisable to authorize or direct
resumption.
| believe the time has come when, by II
simple 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 at home and
abroad. For the fiscal year, ending June
30, 1876, the exports of the United States
exceeded the imports by S120,2 1902, but
our exports include $40,569,62l 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 january /, 1877, the excess of the
exports over the imports amounted to
Sl07 544,SG9, and the imports Of specie
and bullion exceeded the exports of the
precious metals by $6,l92, 149 in the same
time. The actual excess of exports over
imports for the six months, exclusive of
specie and bullion, amounted to $113,13
040, showing for the time being the accu-
mutation of specie and bullion in the coun-
try amounting to more than $6,000,000 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 short of $G0,000,000.
1t is very evident that unless this great
increase of the precious metals can be
utilized ut home in such n way as to make
| it in some way rcmunerative to the hold
crs, it must seek Il foreign market us sure
y as would any other product of the soil
or mandatory. Any Legislation which
will keep coin and bullion at home will,
in my Judgment, soon bring about practi-
cal resumption, and will add tile coin of
the country TO the circulating medium,
thus securing healthy " initiation of q
sound currency, to the great advantage of
every legitimate business interest.
The act to provide for the resumption of
specie payments authorized the secretary
of the treasury to issue bonds of either Of
the descriptions named in the act of Con-
gress approved July 1, 1870, entitled
An act to authorize the refundng of the
national debt for not less than par in
gold. With the present value of the four
and one-half per cent bonds in the mar
kets of the world, they could be exchang-
ed at par for gold, thus strengthening the
treasury TO meet final resumption, and to
keep the excess of coin over the demand,
pending its permanent use as Il circulating
medium ut home. All that would further
be required would be to reduce the volume
of legal-tender notes in circulation. 70
accomplish this would suggest an act au-
thorizing the secretary Of the treasury to
issue four per cent bonds, with forty years
to run before maturity, to be changed for
legaltender notes, whenever presented in
sums of $50 or any multiple thereof, the
whole amount of snch bonds, however,
not to exceed $l50,000,000. To increase
the home demand for such bonds would
recommend that they be available for de-
post in the United States treasury for
banking purposes under the various provi-
sons Of law relating to national banks. |
would suggest further that the national
banks be required TO retain II certain per
cent Of the coin interest received by them
from the 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 sill
vcr coin approved July %, 1876, limiting
the subsidiary coin end fractional curren-
cy to 50,0O0,000.
am satisfied thas if Congress will enact
some such law as will accomplish the end
suggested, they will give Il relief to the
country, instant in its effect, and for which
they will receive the gratitude of the
whole people. U. S. GRANT.
Executive Mansion, February 3, 1877.