Year: 1874

WASHINGTON, December Z, 1914


To the Senate and House of Representatives


Since the convening of Congress, one year
ago, the nation has undergone prostratlon
in business and industries, such as has not
been witnessed with US for many years. spec
ulation as to the causes for this prostratlon
might be indulged in without profit, because
as many theories would be advanced as there
would be independent writer's, or those who ex-
pressed their own views without borrowing
upon the subject. Without indulgng in the
theories as to the cause of this prostration,
therefore, will call your attention to the fact
and to some plain questions as to which it
would seem, there should be no disagreement.
During this prostratiou two essential elements
of prosperity have been most abundant. La
Dor and capital both have been largely en-
ployed. Where security has been undoubted,
capital has been attainable at very moderate
rates. Where labor has been wanted, 1t has
been found in abundance at cheap rates, com.
pared with that of necessaries, and the COM
forts fife could be purchased with the wages
demanded. Two great elements Of prosperl-
ty, therefore, have been denied us. A third
might be added Our soil and climate are
unequaled within the limits of any cont'gu-
Gus territory under our nationality, tor its va
riety of products to feed and clothe people,
and in that amount of surplus to spare to feed
less favored people. Therefore, with these
facts in view, it seems to ME that wise states
manship at this session of Congress would die
tate legislation ignoring the past, directing, in
proper channels, these great elements OF pros
perity to any people. Debt abroad is the
only element that can, with always sound
currency, enter into our affairs, to cause any
continued depression in the industries and
prosperity of our people. A great conflict for
national existence, made necessary, for tempo
rary purposes, the raising of large sums OF
money from whatever source attalnable 1t
made it necessary, in the wisdom of Congress,
and I do not doubt their wisdom in the premi-
ses, regarding the necessity of the times, to
devise system of national currency, which
it proved to be impossible to keep on par with
the recognized currency of the civilized world


This begot spirit of speculation, involving
an extravaganza and luxury, not required tor
the happiness or prosperity of the people, and
involving, both directly and indirectly, for
eign Indebtedness, the currency being OF Hue
tuating value, and therefore unsafe to hold tor
legitimate transactions requiring money to
become subject of speculation in ITSELF
These two causes, however, have involved US
in foreign Indebtedness, contracted in good
faith by borrower and lender, which shall be
paid in coin, and according to bond agreed
upon, when the debt was contracted, in gold
or its equivalent. The good faith of the gov
ernment cannot be violated toward creditors
without national disgrace but our commerce
should be encouraged, American shipbuilding
and carrying capacity increased, foreign mar
kets sought for the products of the soil and
manufactures, to the end that we may be able
o. pay these debts. Where new market can
be created for the sale of our products, either of
the soil, the mine, or the mandatory, new
means is discovered of utilizing our idle cap-
tai and labor to the advantage of the whole
people but in my judgment the first step to-
ward accomplishing this object is to secure
currency of fixed stable value; currency,
good wherever civilization reigns; one which
if it becomes superabundant with one people
will find a market with some other a curren-
cy which has as its basis the labor necessary
to produce it which will give to it its value.
Gold and silver are now the recognized me-
diums 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- when our present le-
gal tender system was adopted and debt con-
tracted, there should be no delay, certainly
no unnecessary delay, in fixing by legislation
method by which we will return to specie.
To the accomplishment of this end | invoke
YOUR special attention. | believe firmly that
there can be no prosperous and permanent re.
vival of business and industries till policy
is adopted, with legislation to carry it out,
looking to return to specie basis.


1t is easy to conceive that debtor and spec
ulative classes may thilk it of value to them
to make so-called money abundant till they
can draw portion of their burdens upon
others but even these, | believe, would be
disappointed in the result if a course should
be pursued which will keep in doubt the value
of the legal tender medium of exchange. A
revival of productive industry is needed by
all classes-by none more than the holders
ofproperty of whatever sort with debts to liqul.
date from realization on its sale. But admit
ting that these two classes of citizens are to be
benefited by expansion, would it be honest to
give it? Would not the general loss be too
great to Justify such relief? Would it not be
lust as honest and prudent to authorize each
debtor to issue his own legal tender to the ex:
tent of his liabilities. Than to do this, would
1t not be safer, for fear of over-issues by un'
scrupulous creditors, to say that all debt obli'
cations aretobliterated in the United States,
and now we commence even, each possessing
all he has at the time, free from incumbrance!
The propositions are too absurd to be enter.
tained for moment by thinking or honest
people, Yet every delay in preparation for
the final resumption partakes of this dshon-
esty, and is only less in degree as the hope is
held out that convenient season will at last
arrive for the good work of redeeming our
pledges to commence. 1t will never come, in
my opinion, except by positive action by Con.
gress, or by national disasters which will de.
stroy, for time, at least the credit of indi,
viduals and the State at large. A sound cur.
rency might be reached by total bankruptcy
and discredit ofth nation and of individuals
I believe it is in the power Of Congress at this
session to devise such legislation as will renew
confidence, revive all the industries, start us
on a career of prosperity to last for many
years, and to save the credit of the nation and
of the people. Steps toward the return to q
specie basis are the requisites to this devoutly
to be sought for end. There are others which
I may touch on hereafter. A nation dealing
in currency below that of Gle in value
labors under two great disadvantages.


1st. Having no use for the worlds acknowl
edged medium of exchange, gold and silver
These are driven out of the country, because
there is no demand for their use.


I'd. The medium of exchange in use, being