Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-12-01
THE PRESIDENTS MESSAGE.


| AZ Tue time UXcu anu the manner cOntem-
| plated by law, United States notes began to
be redeemed in coin. Since the first of jan
! uary last they have been promptly redeemed
| on presentation, and in all business transac-
tons, public and private, in all parts of the
country, they are received and paid out as
| 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 large.
The excess of precious metals deposited or
exchanged for United States notes over the
amount of United States notes redeemed is
about S40,000,000. The resumption of
specie payments has been followed by a very
great revival of business, with a currency
equivalent in value to any 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 bal
ance of trade in our favor, which has been
paid in gold form the first of July last to
November 10 to the amount of about $751;
900, 900. Since the resumption of specie
payments there has also been a marked and
gratifying improvement of the public credit.
The bonds of the government bearing only
4 per cent. interest have been sold at or above
par, sufficient in amount to pay off all the
national debt which was redeemable under
| the present law. The amount of interest
saved annually by this process of refunding
the debt since March /, 1877, is Sl4 ,297, III.
The bonds sold were largely in small sums
and the number of our citizens now holding
public securities is much greater than ever
before. The amount of the national debt
| which natures within less than two years is
1872, 12l 700 Of which $500, 600, 900 bears in
terest at the rate of 5 per cent, and the bal
ance is in bonds bearing six per cent. inter-
est. 1t is believed that this part of the pub
lie debt can be refunded by the issue of four
per cent. bonds, and by the reduction of in
terest which will thus be effected about elev-
en- millions of dollars can be annually saved
to the treasury. To secure this important re-
duction 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 minis of the
United States, during the last fiscal year, was
S40,986,9l2. The coinage of silver dollars
since the passage of the act for that purpose,
up to November l, 1879, was $4,000, $50, of
which Sl2, zoe, 344 have been issued from the
treasury, and are now in circulation, and 1872
800, SOC are still in possession Of the govern
ment.
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 equality of
gold and silver in the recognized money of
the world leads me to recommend that Con-
gress ref ain from new legislation on the gen.
eral subject. The great revival of trade, in
ternal and foreign, will supply during the
coming year its own instructions, which may
well be awaited before attempting further ex-
detrimental measures with the coinage.
would however strongly urge upon Congress
the importance of authorizing the secretary
of the treasury to suspend the coinage of sill
yer dollars upon the present legal ratio. The
| market value of the silver dollar being uni
fOrmly and largely less than the market value
| of the gold dollar, it is obviously impractical
BILE to maintain them at par with each other,
| if both are carried 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 a currency of both gold and
silver, which shall be of equivalent value,
dollar for dollar, with the universally recog-
nized money of the world. The retirement
from circulation of United States notes, with
capacity of legal tender in private contracts,
is a step to be taken in onr progress towards
a safe and stable currency. which should be
accepted as the policy and duty of the gov
ernment and the interest and security of the
people. 1t is my firm conviction that the is
sue of legal tender paper money, based Who'll
ly upon the authority and credit of the gsv-
ernment except in extreme emergency, is
without warrant in the constitution, and vi
olation Of sound financial principles. The
issue of United States notes during the late
civil war, with the capacity of legal tender
between private individuals, was not author
lied except as a means of rescuing the coun-
try from imminent peril. The circulation of
these notes as paper money for any protract-
ed period of time after the accomplishment of
this purpose, was not contemplated by the
trainers of the law under which they were is
sued. They anticipated the redemption and
withdrawal of these notes at the earliest prac-
ticable period consistent with the attainment
of the object for which they were provided.
The policy of the United States, steadily
adhered to from the adoption of the constitu-
ton, has been to avoid the creation of a ma
tional debt, and when from necessity in time
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 pur-
pose it is recommended that existing laws for
the accumulation of a sinking fund sufficient
to extinguish the public debt within a limited
period be maintained. If any change of OBJ
jects or rates of taxation is deemed necessary
by Congress, it is supposed that experience
has shown that duty can be placed on tea
and coffee, which will not enhance the price
of those articles to the consumer, and which
will add several million dollars annually to
the treasury.
The attention Of Congress is called to the
continued violation in Utah of the statutes
against polygamy in that Territory. 1t has
population sufficient to entitle it to admis-
sion as a State, and the general interests of
the nation as well as the welfare of the citi-
zens of the Territory, requires its advance
from a territorial form of government to the
responsibles and privileges Of State. This
important change will not however be ap-
proved by the country while the citizens of
Utah in very considerable number uphold
practice which is condemned as a crime by
the laws of all civilized communities through
out the world. The law for the suppression
of this offense was enacted with great unani-
nifty by Congress more than seventeen years
ago, but has remained until recently dead
letter in the Territory Of Utah, because of
the peculiar difficulties attending its enforce
ment. The opinion widely prevailed among
the citizens of Utah that the law was in con-
traventisn of the constitutional guarantee of
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