The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1879-12-06
PRESIDENTS MESSAGE.

OF REPRESENTATIVES: 4 he lleHpoio VI e.o
forty-siXth congress have assembled III
the first regular session, under clrculn-
stances calling for mutual congratulatlon
and grateful acknowledgment to the CIV
er of all Good for the large and unusual
measure of national prosperity when 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 opera
lions OF the government directly affecting
the business interests OF the country. l
congratulate congress upon the success
full execution of the
RESUMPTION
act. At the time fixed and IN the man
ner contemplated 10y law, the notes OF tile
United States began to be redeemed III
com. Since the first OF January liSl
they have been promptly redeemed on
presentation, and in all business transac-
lions, public and private, III all parts OF
the country. they are received ana palu
out as the equivalent of com. The de-
mand upon the treasury for gold ana Sill
yer i'm exchange for United States notes
has been comparatively small, ana tlle
voluntary deposit of coin ana DulllOn III
exchange for notes has been very large.
The excess of the precious metals depoS-
tied or exchanged for United states holeS
over the amount of United States notes
redeemed is about S4O,OOC,OOO. The re-
sumption OF specie payment has been lol-
lowed bv very great revival OF business.
With currency equivalent in value to
the money Of the commercial world, we
are enabled to enter upon an equal com
petition with other nations III trade ana
production. The increasing foreign de-
mand for our agricultural products has
caused a large balance OF trade III our Ia
yor. which has been paid in gold, from
the 1st of July last to Nov. 10, to the
amount of about SjO,OO0,UOU. Since the
resumption of specie payments there has
been a marked and gratifying improve
ment of the public credit. The bonds OF
the government bearing only per cent.
interest have been sold at or above par,
sufficient in amount to pay of all OF the
national debt which was redeemable UNI
der present laws The amount of inter
est saved annually 10y the process OF re-
funding the debt since March !, 1877, is
Sl4 297. III The bonds sold were largely
in small sums, and the number of our cit
liens now holding the public securities is
much greater than ever before. The
amount of the national debt which ma
lures in less than two years is S792, Ill
700, of which S5OOOOO,O0O bear interest at
the rate of per cent, and the balance is
in bonds bearing & per cent. interest. 1T
is believed that this part of the public
debt can be refunded by the issue of
per cent. bonds, and by the reduction of
interest which will thus be effected about
Sll 100000 can be annually saved to
the treasury. To secure this important
reduction of interest to be paid by the
United States further legislation is re-
quired, which, 1t is hoped, Will be provid-
ed by Congress during its present session.
THE COINAGE
OF gold by the mints of the United States
during the fiscal year was SAC, 9S6,9l2. The
coinage Of silver dollars since the passage
OF the act for that purpose, up to Nov. !,
1879 was Si5, 0O0,S5O of which SO, zoo. 3H
have been issued from the treasury and
are now in circulation, and S32 300 500 are
still in possession of the government.
The pendency OF the proposition for
unity of action between the United States
and the principal commercial nations of
Europe To effect a permanent system for
the equality of gold and silver in the rec
ognized money of the world leads me To
recommend that congress refrain from
new legislation on the general subject
The great revival of trade. internal and
foreign, Will supply during the coming
year It's own instructions. which may well
be awaited before attempting further eX-
perlmental measures with the coinage. |
would, however, strongly urge upon con-
gress 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 sill
yer dollar being uniformly and largely
less than the market value of the gold
dollar, II is obviously impracticable to
MAINTAIN them ut par with each other if
both are coined without limit. If the
cheaper com IS forced into circulation it
Will, If coined without limit. soon become
the sole standard Of value, and thus de-
feat the desired object which lisa currency
Of both gold and silver, which shall be of
equivalent value, dollar for dollar, with
the universally recognized money of the
world. Inc retirement from circulation
OF United states notes with the capacity
OF legal lender In private contract is a
step To he taken in our progress toward "A
SAFE ana stable currency, which should be
accepted as the policy and the duty of
The government and the interest and Sc
cultY Of the people of it. 1t IS my firm
conviction that the issue of legal tender
paper money based wholly upon the all-
lhority ana credit of the government, eX-
cept III extreme emergency, is without
warrant III the constitution and "A viola
ton OF sound financial principles. The
issue Oh United states notes during the
late clyl war, with the capacity Of legal
tender between private individuals, was
not authorized except as il means of res
GullS Ihe country from imminent peril. |
The circulation of these notes as pappr
money Tor 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 49,
They anticipated the redemption and
withdrawal Of these notes at the ear
Hest practicable period consistent with
tne attainment OF the object tor which
tney were provided. The policy of the
United States. steadily adhered IN from
The adoption Of the constitution. has been
TO avoid the creation Of a national debt,
ahd Wien, from necessity in time of war.
deots nave been created they have been
paid on on The return OF peace as rapidly
as possible. With this view and for this