Year: 1874




currency which has its basis on the labor
%Sish aiSi*ihs''y will 9iTs sSe0'' it it, v.'as Sne


Gold and silver are now the recognized


mediums OF exchange the civilized world


over, and to this we should return with the


least practicable delay.


In view of the pledges Of the American


Congress whel our present legal-tender sys-


TEN was adopted, and debt contracted, there


delay in fixing, by legislation, q method by
For the accomplishment Of this end, invite
and permanent revival of business and in in
dustry until this policy is adopted with leg
islation to carry it out looking to return to
that the debtor and speculative classes may
think it OF value to make so-called money
abundant until they can throw a portion OF
their burdens upon others. But even these.
| believe, would be disappointed in the re-.
suit if course should be pursued which
will keep in doubt the value OF tile legal
tender medium Of exchange. A revival OF
productive irdusta les is needed by all classes,
by none more tEtn the holders Of property,
from realisation urcn its sales. But adm it.
ting that these two classes Of citizens are to
be benefited ~ exfs nsion, would it be hon
est to give til Would no. the general loss
be too great to justify such re-
lief? Would it not 'be just as hon
est and prudent to authorize each
debtor to issue his own legal tenders to the
extent of his liabilities than to do this
| Would it not be safer for !ear of over-issues
by inscriptions creditors, to say that all
debts and obligations are obliterated in the
United States and now we will commence
anew, each possessing all he has at the time,
free from incumbrance. These prop
! ositlons are too absurd to Ike
entertained for a moment by thinking peo-
| pie. Every delay of resumption partaltes of
this dishonesty. But the time now at last
pledges to commence. It will never come,
| in my opinion, except by positive action by
Congress or by. national disasters which will
destroy, for time at least, the credit OF in.
dividuals and the States at large.
sound currency must be reached or the
total bankruptcy Of the credit and integrity
Of the nation and of individuals. l believe
it is in the power Of Congress 1t this session
to devise such legislation as will renew con-
fidence, revive all the industries, and start
us on career OF prosperity to last for many
years and save the credit of the nation and
OF the people. Steps toward a return to 2 |
specie basis are the great requisites to this |
devoutly to be sought for end. There are
others, which may touch upon hereafter.
nation dealirgin currency below thatpf|
specie in value, labors under two great dis
advantages
First-ln hsvirg no use for the worlds
acknowledged Medium of exchange, gold
and silver. These are driven out Of the |
country because there is no demand for
their use.


Second-The medium Of exchange in use
being OF a t1uctuatinR value. for after all it |
is only worth just what it will purchase OF
value just in proportion to the honest labor it |
takes to produce them, large margin |
must be allowed for profit by the manufac-
turer and producer 1t is months from the |
date of production to the date of realization. |
Interest upon capital must be charged and |
the risk of huctuation in the value Of that
which is to be received in payment added.
Hence the high price acting as protection to
the foreign producer who receives nothing
in exchange for the product Of his skill and
labor. except a currency good at a staple
value the world over.


1t seems to me that nothing is clearer than !
that the greater part of the burden of the |
existing prostration for the want of a |
sound financial system falls upon the
workingman, who must after all produce
the wealth, and the salaried man who SUI
perintends and conducts the business. The
burden falls upon them in two ways-by
the deprivation of employment and by the
decrease Of the purchasing power of their
salaries.


1t is the duty of Congress to devise the
methods Of correcting the evils which are
acknowledged to exist, and not mine. But
Twill venture to suggest tv or three things
which seem to me as absolutely necessary to
return to specie payments, the first erest
1SSe'f ISs legal II tenSsr 5sso'n clause p'oey y t2:
law authorizing the issue ol
currency by the national government should
be repealed, to take effect as to all contracts
after day fixed OH, the repeating act not to
apply, however, to payments OF salaries by
the government or for other expenses now
provided by law to be paid in currency. In
final resumption. provision should be made
by which the Secretary of the Treasury can
obtain gold as it may become nec-
essary from time to time from
the date when specie resumption
commences To this might and should he |
added a revenue sufficiently in excess of ex-
penses to insure an accumulation OF gold in |
the Treasury to sustain redemption. 1com-
mend this subject to your careful considera-
ton, believing that q favorable solution is
attainable, and that if freached by this Con-
gress that the present and future generations
will ever gratefully remember it as the de.
livery from the thraldom of evil and dis
grace.


FREE BANKING.
With resumption free banking may be au-
| thorized with safety, giving full protection
to bill holders, which they have under ex-
isting laws. Indeed l would regard free
banking as essential. It would give deeper
elasticity to the currency. As more currency
| 1ron11 ronr1irn1 f1a nfitH,1 If To-
gitimate business, new hanks would be start
ed, and in turn banks would wind up their
business when it was found there was a su.
perabundanoe of currency.


The experience and judgment Of the peo-
PIE can best decide just how much currency
il required for the transaction of the busi-
ness Of the country. It is unsafe to leave
tie Secretary OF the Treasury or the Execu-
tive. Congress should make the regulation
under which banks may exist, but should
the amount Of redeemable currency
that shall be authorized. Such
importance do l attach to this subject
and so earnestly d,I commend it to your
attention that give it prominence by intro
ducing it At the beginning Of this message.


FRIENDLY RELATIONS WITH FOREIGN POW.


ERs.


During the past year nothing has occurred
to disturb the general friendly and cordial
relations of the United States with other
powers. The correspondence herewith sub.
mitted between this government and its di-
plematic representatives to other coun-
i all questions between the United States
and other countries, and with few ex-
ceptions to which reference is hereafter


made,. the absence of any points Of differ.
enoe to be adjusted.


The notice directed by the resolution Of
Congress Of June IT, 1877, to be given to
terminate the convention Of July II, 1868,