The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1877-02-28
MESSAGE on THE SPECIE,

President Grnnt Forwarded to Coagrcs, the
following Message us Indicating hi. views
on the Speedy Resumption Of Specie
Payment.
The following is the Presidents mes
sage on tie subject of the resumption of
specie payments:
20 the Senate and House Of Repre-
sentatiucs: 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.
It 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 coin
on presentation, but it is certainly most
desirable and will prove most beneficial
to every pecuniary interest Of the coun-
try to hasten the day when the paper
circulation OF the country and the gold
coin shall have equal values. At a later
day If currency and coin should retain
equal values it might become advisable
to authorize a direct resumption. I be-
lleve the time has come when by Il sim
pie act of the Legislative branch of the
government this most desirable result
can be attained. I 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 80,
1876, the exports of the United States
exceeded the imports by $500, 213, 102,
but our exports include $40, $50, 621 of
specie and bullion in excess of the i'm
ports of the same commodities. For the
SIX months of the present fiscal year
IRON July l, 1876, to January l, 1877,
the excess of exports over imports
amounted to S107, SAB, 500, and the i'm
ports of specie and bullion exceeded the
imports Of the precious metals by Sc, 1922
lat in the same time. The actual excess
of exports over imports for the six
months, exclusive of specie and bullion,
amounted to S113, 1877, 04O, showing for
the time being the accumulation of
specie and bullion in the country amount
ing to more than Sc, 900, 900, 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 $50, 600, 600. 1t is evident that
unless this great increase of the precious
metals can be utilized at home in such Il
way as to make it in some manner re-
munerative to holders, it must seek q
foreign market as surely as would any
other product OF the soil or manufactOry.
Any legislation which will keep coin and
bullion at home will, in my Judgment,
500 bring cbout practical resumption,
and will :.ud the coin of the country to
the circr iating medium, thus securing a
healthy imitation of Il sound currency
to the great advantage Of every legiti-
mate business interest.
The act to provide for the resumption
Of specie payments authorized the secre-
tary of the treasury to issue bonds of
either of the descriptions named in the
act Of Congress approved July 4th, 1870,
entitled can act to authorize the refund
ing Of the national debt" for not less
than gold. With the present value of
the four and one-half per cent. bonds in
the markets of the world they could be
exchanged at par Tor gold, thus strength
ening the treasury to meet the final re-
sumption and to keep the excess of coin
over the demand, pending its permanent
use, a circulating medium at home. All
that would further be required would be
to reduce the volume OF legal tender
notes i'll circulation. To accomplish this,
l would suggest an act authorizing the
secretary OF the treasury to issue four per
cent. bonds, with forty years to run be-
fore 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 $3.50, 900, 600. To increase the
home demand for such bonds I would
recommend that they be available for de-
post in the United States treasury for
banking purposes under the provisions
of the law relating to national banks.
I would suggest further that national
banks be required to retain a certain per ,
cent. of the coin interest received by them
from the bondsdeposited with the treasury
to secure their circulation. I would also
recommend the repeal of the third section
of the Joint resolution for the issue Of sill
yer coin, approved July %, 1876, limiting
the subsidiary coin and fractional currency
to $50, 900, 600. l am satisfied that if
Congress will enact some such law as will
accomplish the end suggested they will
give q relief to the country instant in its
effect and for which they will receive the
gratitude Of the whole people.
Executive Mansion. Feb. 3. 1877,