Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-12-02
PRESIDENTS MESSAGE.

Following is synopsis of Presi-
dent Hayes message, read in both
houses at the assembling of the Forty
Sixth Congress yesterday:
He congratulates Congress on the sue
cessful execution of the Resumption act.
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 depos-
tied or exchanged for u nited States notes
over the amount of United States notes re-
deemed is about forty million dollars. He
refers to the consequent revival of trade,
and says the increasing foreign demand for
our manufacturers and agricultural pro-
ducts has caused a large balance of trade
in our favor which has been paid in gold,
from the first of July last to November
18th, to the amount Of $59, ,C0,0C0. Since
the resumption of specie payments there
has also been marked and gratifying i'm
provement 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 re-
deemable under present laws. The
amount of interest saved annually by this
process of refunding the debt since March
1st, 1877, is $14,297,l 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. The amount of the National debt
which natures within less than two years
is 1872, 121, 700, of which $500, 100000 bears
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 million dollars can
be annually saved to the Treasury.
To secure this important reduction of
interest paid by the United States, fur
ther legislation is required, which, it is
hoped will be provided by Congress dur
ing its present session. The coinage of
gold by the mints of the United States dur
ing the last fiscal year, was $40, 1885, 912
The coinage of silver dollars since the pas
Der 1st, 1879, was $4,000, $50, of which
$12, 700, 344 have been issued from the
Treasury and are now in circulation and
$3Z, 800, sos are still in the possession of the
Government. The pending of the propO-
sition for union of action between the
United States and the principal. CONNER
cial nations of Europe, to the effect that q
permanent system for the equality of gold
and silver in the recognized money of the
world, leads me to recommend that Con-
gress refrain from new legislation on the
general subject. The great revival of trade,
internal and foreign, will supply, during
| the coming year, 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 au-
l 4hs@v-1 -1zir %haS sc ha %
| suspend the coinage of silver dollars upon
the present legal rates. Tho market value
of the silver dollar being uniformly and
largely Jess than the market value of the
| gold dollar, it is obviously impracticsble 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 become
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.
| / he retirement from circulation of United
| States notes with the capacity OF legal ten
| der in private contracts, is step to be taken
! in our progress toward q 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 oftheGovern-
| ment, except in extreme emergency, IS
| without warrant in the Constitution, and i
violation of sound financial principles;
! The issue of United States notes during
the late civil war, with the capacity of le-
gal tender between private individuals
was not authorized, except as a means OF
rescuing the country from Imminent peril.
! The circulation of these notes as paper
money for any protracted period of time
after the accomplish of this purpose,
was not contemplated by the trainers of the
law under which they were issued. They
anticipated the redemptio and withdrawal
| of these notes at the earliest PRACTICAL lie
period. Consis ent with the attainment OF
the object for which they were provided, the
policy of the United States, steadily ad-
hered to from the adoption of the Consti-
| tuition, has been to avoid the creation of q
! National debt and when from necessity
in the time of war debts have been crea.
ted, they have been paid off on the return OF
peace as rapidly as possible. with this
view and tor this purpose, it is recon-
mended that the existing laws for the ac
cumulation OF a sinking fund sufficient
to eXtinguish the public debt within {
limited peroid be maintained.
If any change of the objects or rates o.
taxation is deemed necessary by Congress
| 1t is suggested that experience has shown
that duty can be placed on tea and coffee
which will not enhance the price of these
articles to the consumer, and which will
add several millions of dollars annually tC
the Treasury.
On the subject CT polygamy the Presi
dent says: Utah has population
sufficient to entitle it to admission as
State, and the general interests of the Ma
ton, as we'll as the welfare of the citizens o
the Territory, require its advance from tn,
territorial form of government to the re
sponsibilities and privileges of State
This important change, however, will no
be approved by the country, while th
citizens of Utah, in very considerable
number, uphold a practice which Is con
demed as crime by the laws of all civil
lied communities throughout the world
He mentions that the law for the suppress
sion of polygamy has now been decided b,
the Supreme Court as to be within the leg
islative power of Congress, and binding, a
rule of action for All who reside within
the Territories. There is no longe
any reason for delay or hesi
tation in its enforcement. l
should be firmly and effectually exc
cuted. If not sufficiently strong in pro
visions it should be amended, and in ai(