Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1879-12-02
or Rutherford B. Hayes, President
Of the United States.
Submitted to the National Senate and
House Of Representatives. De-
cember list, 1879.
FELLow.CIrIzENs OF THE SENATE
AND HOUSE, OF Representative

sual measure Of national prosperity which
We now enjoy.
NATIONAL FINANCES.
The most interesting events which have
occurred in our public affairs since
nv last annual message to congress
are connected With the financial operations
Of the government directly affecting the
business interests Of the country. I congra-
tulate congress on the successful execution
of the resumption 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
the have been promptly redeemed on pre-
sentation, and 10 all business transactions,
public and private. in all parts of the coun.
try, they are received 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
aud bullion in exchange for notes has been
very large. The excess of the precious
metals deposited or exchanged for United
States notes over the amount of United
States notes redeemed is about forty mil
lions.
The resumption Of specie payments have
been followed by a very great revival
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 a
large balance of trade in our favor, which
has been paid in gold. from the LIST of July
last, to November Is, to the amount Of
about $780, 900. Since the resumption
of specie payments there has also been q
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 in
amount to pay off all of the national
debt which was redeemable under present
laws. The amount of interest saved annu-
ally by the process of refunding the debt,
since March /, 1877, is $I4,297, III.
The bonds sold were largely in small
sums and the number Of our citi-
zens now holding the public securities is
much greater than ever before. The amount
of the national debt which natures within
less than two years is 1892, 121,700, of which
$500,O00,000 bear interest at the rate of five
per cent, and the balance is in bonds bear.
ing six per cent. interest. It 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
secure this important reduction of intereat
to be paid by the United States, further Leg
islation Is required, which, it is hoped, will
be provided BY congress during its present
session.
The coinage of gold by the minis of the
United States, during the last fiscal year was
$~40,986,9l2. The coinage of silver dollars,
since the. passage Of The act for that purpose,
up. to November i, 1879. was S45, O0O, $500 of
which $l2, 700,344 have been issued from
the treasury and are now in circulation. and
$32,3O0,5 SOC are still in the possession Of the
government.
The pendency of the proposition for unity
Of action between the United States and the
principal commercial nations of Europe. te
effect q permanent system for the equality O
gold and silver in the recognized money q
the world, leads me to recommend that con
gress refrain from new legislation on tn,
subject. The great revival of trade. inter
nal and foreign, will supply, during til.
coming year. its own instructions, which ma,
we'll be awaited before attempting. furthe
experimental measures with the coinage.
would, however, strongly urge upon conpree
the importance Of authorizing the secretar,
of the treasury to suspend the coinage q
silver dollars upon the present legal ratio
The market value of the silver dollar bein,
uniformly and largely less than the marie
value of the gold dollar, it is obviously i'm
practicable to maintain them at par viii
each other if both are coined without limj
If the cheaper coin is forced into circulatio
1t will, if coined without limit, soon becom
the sole standard of value, and thus defes
the desired object. which is a currency I
both gold and silver, which shall be Z
equivalent value, dollar for dollar, with th
universally recognized money of the worlt
The retirement from circulation of Unite
States notes, with the capacity of ~leeal.te1
der in private contracts, Is q step to be take
in our progress towards a safe and stab
currency, which should be accepted as II
policy and duty Of the government. and II
interest and security of the people. It
my firm conviction that the issue of lepa
tender paper money based wholly upon Il
authority and credit of the governmeu
except in extreme emergency.
without warrant in the constit
ton, and q violation OF sound financial pri
ciples. The issue of United States not
during the late civil war with the capaci
OF legal tender between private indiyidu,
was not authorized except as a means of re
cuing the country from imminent per
The circulation Of these notes a. nan
money, for any protracted period OF time
ter the accomplishment of this purpose. "
not contemplated by the framers Of the Ia
under which they were issued. They Il
tlcipated the redemption and withdraw.l
these notes at the earliest practicable peri
consistent with the attainment of the obi,
for which they were provided. :
The policy of the United States. stead
adhered to from the adoption of the o 3
tuition. has been to avoid the creation ii
national debt, and when, from necessity
time Of war, debts have been created. II
have been paid off on the return of peace
rapidly as possible. With this view. q
for this purpose, it is recommended Il
the existing laws for the accumulation Of
sinking fund suf1cient TO ~extinpuish I
public debt within . limited period
maintained. II any change OF the obie
or rates Of taxation is deemed necessrrv