Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-12-02
Dailp kfnnebfr :3ournal.
Presidents Message.
Feiiow Citizens Of the Senate and House OF
Represeatdttres


have assembled in their first regular session
under circumstances calling for mutual con-
graduation and grateful acknow wledgment to
the Giver of all good for the large and unusu-
al measure of National prosperity which we
now enjoy
The most interesting events which have Oc-
Cured in our public affairs since my last an
nual message to Congress, are connected with
the financial operations of the Government
directly affecting the business interests of the
country. ! congratulate Congress on the
successful execution of the resumption act.
At the time fixed and in 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-
tions, public and private, in all parts of the
country, 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 ofcoin and bull
lion 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 SAC, 900 The resumption of
specie payments has been followed by 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 bal
ance of trade in our favor, which has been
paid in gold, from the first of July last TO
November Is to the amount of about S59,
O00, 900. Since the resumption of specie
A.. ,lnn La., ~l,n1 ..,l
gratifying improve ment 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
present laws. The amount of interest
saved annually by the 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
the public securities is much greater than ever
before. The amount of the national debt
which natures within less than two years is
S792. .l2l, 700, of which $500, ,000, 900 bears in
terest at the rate of ) 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-
grcss during its present session.
The coinage of gold by the mints of the
United States, during the last fiscal year, was
$40, ,9S6,912. The coinage of silver dollars
since the passage of the act for that purpose,
up to November /, 1879, was $1,000, $50, of
which ST., 100, ,344 have been issued from the
treasury, and are now in circulation, and $32
800, 500 are still in the possession of the gov
ernment.
The pendency of the proposition for unity
of action between the United States and the
principal commercial nations of Europe to
effect permanent system for 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 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-
perimental 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 impractica-
BILE to maintain them at par with each other,
if both are coined without limit. II 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 u currency of both gold and
silver, which shall be of equivalent value dol
lar for dollar, with the universally recognized
money of the world. The retirement from
circulation of United States notes, with the
capacity of legal tender in private contracts,
is step to be taken in our 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
y upon the authority and credit of the gev-
ernment, except in extreme emergency, is
without warrant in the constitution, and avi-
olation of sound financial principles. The
issue of United States notes during the late
civil war, with the capacity Of legal tender
betw cen 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 Oft 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 ma
tional debt, and when from necessity in time of
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 purpose
| it is recommended that the existing laws for
the accumulation of sinking fund sufficient
to extinguish the public debt within limited
period be maintained. If any change ofthe OBJ
jects or rates of 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 those articles to the consumer, and which
will add several millions of dollars annually tc
the treasury.
The continued deliberate violation by
large number of the prominent and influential
citizens of the Territory of Utah of the law,
of the United States for the prosecution ant
punishment of polygamy demands the atten
ton of every department Of the Government
This Territory has a population sufR
cient to entitle it to admission ~ I
State, and the general interests Of tn,