Year: 1879

ment TO the Giver of all good tor the large
and unusual measure of national prosperity
which we now enjoy. The most interesting
events which have occurred in our public
affairs since my last annual message t.
/ Congress are connected with the financial
operations Of the Government, directly


affecting the business interests of the coun-
try. / congratulate Congress on the sue
cessful execution of the Resumption Act
At the time fixed, and in the manner
contemplated by law, United States notes
| began 10 be redeemed in coin. Since the
| lst OF January last they have been promptly
redeemed on presentation, and in all
business transactions, public and private in


all parts Of the country, they are received
and pad 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 of coin and bullion 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 $4,000, 600.


THE RESUMPTION OF SPECIE PAYMENTS
has been followed by great revival of busi-


ness. With a currency equivalent in value
to the money of the commercial world, we


are enabled to enter upon an equal compe-
titiOn with other nations in trade and
production. The increasing foreign demand
for our manufactures and agricultural pro-
duets has caused a large balance of trade in
our favor, which has been paid in gold, from
the lst of July last to November -, to the


amount Of about $50, 100000. Since the
1 resumption of specie payments there has
also been a marked and gratifying improve


ment in the public credit.


The bonds of the Government bearing
only four per cent. interest have been sold
at about par, sufficient in amount to pay
off all of the national debt which was re
deemabe under present laws. The amount
of interest saved annually by the process of
refunding the debt since March |, 1877, is
$I4, 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 1892, l2l 200, of which
OO,O00,000 bear interest at the rate of five
per cent, and the balanceis in bonds bearing
six per cent interest. 1t is believed that
this part of the public debt can be refunded
by the issue of four per cent. bonds, and by


the reduction of interest which will thus


be effected about $11 900, 900 can be annu-
ally saved to the treasury. To secure this


important reduction of interest to be paid
by the United States, further legislation is
required, which, it is hoped, will be pro-
vided by Congress during its present
session.


THE COINAGE OF GOLD


by the mints of the United States during
the last fiscal year was $40, ,9S6912 The
coinage of silver dollars since the passage of
the act for that purpose up to November /,
1879, was $45, 900, $50, of which $l2, 700, ,344


have been issued from the Treasury, ana
Q OH at


still in the 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 recognized 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 its own instructions, which may


well be awaited before attempting further
experimental measures with the coinage.
would, however, strongly urge upon Con-
gress the Importance of authorizing the See
retary of the Treasury to suspend the coin
4 age of silver dollars upon the present legal
ratio. The market value Oft the silver dollar
| being uniformly and largely less than the


market value of the gold dollar, it is obVi-
ously impracticable to maintain them at
/ par with each other if both are coined with
out 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 cur


rency of both gold and silver, which shall be


of equivalent value, dollar 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 a step to
/ be taken in our progress toward Il safe and
staple currency, which should be accepted as
the policy and duty of the Government, and


the interest and security of the people. 1t
I is my firm conviction that the issue of


LEGAL-TENDER PAPER MONEY,


| based wholly upon the authority and credit


of the Government, except in extreme


emergency, is without warrant in the Con
stitutinn, and violation of sound financial
/ principles. The issue of United States
notes during the late civil war, with the
/ capacity of legal.tender between private in
dividuals, was not authorized except rs a


means of rescuing the country from immi-


nent peril. The circulation of these notes


as paper money for anv protracted period oil
time after the accomplishment of this pur-
pose was not contemplated by the trainers
of the law under which they were issued.


They anticipated the redemption and with


drawal of these notes at the earliest practi-


cable 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 COnsti-


tuition, has been to avoid the creation of q


national 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
4 that the existing laws for the accumulation
of Sinking Fund sufficient to extinguish
/ the public debt within a limited period be
maintained. If any change of the objects


or rates of taxation is deemed necessary by
! Congress, it is suggested that experience


has shown that a duty can be placed on


tea and coffee which will not enhance the
price of those articles to the consumer, anG
which will add several millions of dollar


annually to the Treasury.


THE ELECTIONS


of the past year, though occupied only with
State Offices, have not failed to elicit in the
political discussions which attend them al
4 over the country, new and decisive evidenc'
of the deep interest which the great body o.
citizens take in the progress of the country
/ toward a more general and complete estab
\ hshment at whatever cost, of universa
security and freedom in the exercise of the
4 elective franchise. While many topics o
political concern demand great attention
rom our people, both in the sphere of Ma
tional and State authority, find no reason
to qualify the opinion | expressed in my
last annual message-that no temporary ol
administrative interest of government, how
4 ever urgent or weighty, viii ever displac'


the zeal of our people in defence OF thu
primary rights of citizenship. And that tn,
power of public opinion will override all
, political preiudices and all sectional anc


State attachments In demanding that al


over our wide territory the name and char
acter of citizen of the United States shal


mean one and the same thing, and carry witt
them unchallenged security and respect,
earnestly appeal to the intelligence and pa


triotisIn of all good citizens of every part o
, the country, however much they may b
divided in opinions on other political sub