Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1879-12-04
TIE PRESIDENTS MESSAGE.
FslloD-citizens Of the Senate and House
of Representatives.

OOQRIeSS AdFC dccClllOlCu III btlC1l LII o
regular session under circumstances call
ing for mutual CONGRATULATIONS anC
grateful acknowledgement to the Giver o.
all good for the large and unusual mea-
sure of national prosperity which we
now enjoy. The most interesting events
which have occurred in our public affairs
since my last annual message to Con.
gress are connected with the financial
operations Of the government directly
affecting the business interest of the
country. / congratulate Congress on
the successful. execution of the Resump-
tion act. At the time fixed and in the
manner contemplated by law, United
States notes began toberedeemed in coin,
Since the first of ] January last they have
and in all business transactions, public
and private, in all parts of the country,
they are received and paid out as the
equivalent of coin. The demand upon
the treasury for gold and silver in ex-
change for United States notes has been
comparatively small, and the voluntary
deposit of coin bullion in exchange for
notes has been very large. The excess
of the precious metals deposited or ex-
changed for United States notes, over
the amount of United States notes re-
deemed is about $40, 900, 900
The resumption of specie payments
has been followed by very great re-
vival of business. With a currency
equivalent in value to the money of the
commercial world, we are enabled to
enter upon an equal competition with
other nations in trade and production.
The increasing foreign demand for our
manufactures and agricultural products
has caused large balance of trade in
our favor, which has been paid in gold
from the first.of July last to- Nov. Is, to
the amount of about $59, 100000. Since
the resumption of specie payments
there has also been marked and graft
flying Improvement of the public credit.
The bonds Of the government, bearing
only four per cent. interest, have been
sold at or above par, sufficient in
amount to pay off all OF the national
debt which was redeemable under pres
ent laws. The amount of interest saved
annually by the process of refunding the
debt since March l, 1877, is Sl4, ,297, III
The bonds sold were largely in small
sums, and the number of our citizens
now holding the public securities is
much greater than ever before.
Theamount of the national debt which
natures within less than two years is
1892, l2l, 200, of which $500, 900, 900 bear
interest at the rate of five per cent,
and the balance is in bonds bearing six
per cent. interest. tits believed that this
part of the public debt can be refunded
by the issue of four per cent. bonds,
and by the reduction of interest which
will thus be effected, about $l1. .000,0 900
can he annually saved to the treasury
To secure this important reduction OF
interest to be paid by the United States,
further legislation is required, which,
it is hoped, will be provided by Con-
gress during its present session.
The coinage Of gold by the mints o.
the United States during the last fiscal
year was $40, 1885, ,9l2. The coinage OF
silver dollars since the passage of the
act for that purpose up to November l,
1879, was $45, 900, $50, of which $12, ,700,-
344 have been issued from the treasury
and are now in circulation, and $32, ,300,-
sos are still in the possession of the gov
ernment. The tendency of the PROPOSE
ton for unity of action between the
United States and the principal COM
mercial nations of Europe, to effect a
permanent system for the equality of
gold and silver in the recognized money
of the world, leads me to recommend
that Congress refrain from new legisla-
tion on the general subject. The great
revival of trade, internal and foreig gn,
will supply. during the coming year, its
own Instructions, which may well be
awaited before attempting further ex-
perimental measures with the coinage. l
would, however, strongly, urge upon
Congress the importance of authorizing
the secretary of the treasury to suspend
the coinage of silver dollars upon the
present legal ratio. The market value
of the silver dollar being uniformly and
largely less than the market value of the
gold dollar, it is obviously impracticable
to maintain them at par with each other
if both are coined without limit. If the
cheaper coin is forced into circulation it
will. if coined without limit, soon be-
come the sole standard of value, and
thus defeat the desired object, which is
currency of both gold and silver,
which shall be OF equivalent value,
dollar for dollar, with the universally
recognized money of the world. The
retirement from circulation of United
States notes, with the capacity of legal
tender in private contracts. is step to
be taken in our progress toward a safe
and stable currency, which should be
accepted as the policy and duty of the
government,and the interest and security
of the people. 1t is my firm conviction
that the issue of legal tender paper
money, based wholly upon the author
1ty of the government, except in extreme
emergency, is without ;arrant in the
Constitution and q violation of sound
financial principles. The issue of United
States notes during the late civil war,
with the capacity of legal tender be-
tween private individuals, was not au-
thorized, except as means of rescuing
the c1untry from imminent peril. The
circulation of these notes as paper
money for any protracted period of time
after the accomplishment Of this purpose
was not contemplated by the Trainers
of the law under which they were
issued. They anticipated the redemp-
tion and withdrawal of these notes at
the earliest practicable period, consist
ent with the attainment of the object
for which they were provided. The pol
icy of the United States, steadily adhered
tOfron the adoption of the Constitution,
has been to avoid the creation of ma
tionaf debt, and when, from necessity,
in time of war, debts have been created,
they have been paid off on the return
of peace as rapidly as possible. With
this view, and for this purpose, it is re-
commended that the existing laws for
the accumulation OF sinking fund
sufficient to extinguish the public debt