The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1879-12-01
PRESIDENTS MESSAGE.

have assembled in their first regular session
under circumstances calling for mutual
congratulation and grateful acknowledg
ment to the Giver of all good for the large
and unusual measure of National prosper
lty which we now enjoy.
The most Interesting events which have
occurred in our public affairs since my last
annual message to Congress are connected
with the financial operations of the govern
ment directly affecting the business inter
ests of the country. L congratulate Con
gress on the successful execution of the re
sumption act. At the time fixed and in the
manner contemplated by law, United States
notes began to be redeemed in coin. Since
the first of January last they have been
promptly redeemed on presentation, and in
all business transactions. public and private,
in all parts of the country, they are re-
ceived and paid out as the equivalent OF
coin. The demand upon the Treasury for
gold and silver in exchange for United
States notes has been comparatively small,
and the voluntary deposit of coin and
bullion in exchange for notes has been very
large. The excess of the precious metals
deposited or exchanged for United States
notes redeemed is about $40, OOO, 700.
THE EFFECTS OF RESUMPTION.
The resumption of specie payments has
been followed by very great revival of
business. With currency equivalent in
world, we are enabled to enter upon an
equal competition with other nations in
trade and production. The increasing for
eign demand for our manufactures and
agricultural products has caused large
balance of trade in our favor, which has
been paid in gold, from the LIST of July last,
to November 10, 90 the amount of about
$59, 700, 900. Since the resumption of
specie payments there has also been a
marked and gratifying improvement of the
public credit. The bonds of the govern
ment bearing only four per cent. interest
have been sold at or above par, sufficient
! n amount to pay off all of the national
debt which was redeemable under present
laws. The amount of interest saved an
nually by the process of refundihg the debt,
since March 1, 1877, is $14, 297, 1T. The
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. TIE amount of the national
debt which natures within less than two
years is $792, 121, 700, of which $500, 000,-
900 bear interest at the rate of five per cent,
and the balance is in bonds bearing six per
cent. interest. 1t is 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 eleven millions of dollars
can be annually saved to the Treasury. To
to be paid by the United States, further
legislation is required, which. it is hoped,
will be provided by Congress during its
present session.
COINAGE.
The coinage of gold by the minis of the
United States, during the last fiscal year
was $40, 1885, 912 The coinage of silver
dollars, since the passage OF the act for that
purpose, up to Novembe l, 1879, was $45.-
900. $50, of which $12, 700, 344 have been
issued from the Treasury and are now in
circulation, and $32. 800, 500 are still in the
possession of the government.
The tendency of the proposition for unity
of action between the United States and
the principal commercial nations of Europe,
to effect permanent system for the equality
of gold and silver in the recognized money
of the world, leads me 10 recommend that
Congress refrain from new LEGISLATION on
the general subject The great revival Of
trade, internal and foreign, will supply,
during the coming, its own instructions,
which may well be awaited before attempt
ing further experimental measures with the
coinage. l would, however, strongly urge
upon Congress the Importance of authoriZ-
ing the Secretary of the Treasury to sus-
pend 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, |
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 become the sole stand |
ard 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 m oney of the world.
RETIREMENT OF UNITED STATES NOTES.
The retirement from circulation of United |
States notes, with the capacity of legal
tender in private contracts, is a step to be |
taken in our progress towards 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 authority and credit of the gov
except IN extreme emergency |
IS without warrant In the Constitution, |
and violation of sound financial princi-
pies. The issue of United States notes
during the late civil war with the Icapacity |
Of legalfender between private individuals
vas not authorized except as means of
-escuing the country from eminent peril.
The circulation of these notes as paper
money, for any protracted period OF time
liter the accomplishment of this purpose,
vas not contemplated by the trainers of the
aw under which they were issued. They
anticipated the redemption and withdrawal
# these notes at the earliest practicable
period consistent with the attainment of
he object for which they were provided.
HE DEBT AND DUTY ON TEA ANB COFFEE.
The policy of the United States, steadily
.dhered to from the adoption of the Con- ,
titution, has been TO avoid the creation of ,
National debt, and when, from necessity !
n time of war, debts have been created, !
hey have been paid of on the return of {
'eace as rapidly as possible. With this
lew, and for this purpose, it is recon-
nended that the existing laws for the &C
Emulation of sinking-fund sufficient to 6
the public debt within a limit r
d period be maintained. If any change E
f the objects or rates of taxation is deem !
d necessary by Congress, 1t is suggested E
nat experience has shown that a duty can
e placed on tea and coffee, which will not 2
nhance the price of those articles to the 4
onsumer, and which will add several mil 9
ons of dollars annually to the Treasury. c
PoLYGANY. S
The continual deliberate violation by a i
lrge number of the prominent and iDfu- p