Year: 1874

ducts the business The burden falls upon
them in two ways-by the deprivation of en-
ployment, and by the decreased purchasing
power of their salaries. 1t is the duty of Con
gress to devise method of correcting the
evils which are acknowledged to exist, and
not mine; but will venture to suggest two OF
three things which seem to me as absolutely
necessary to return to specie payment. AS
the first great requisite in the return to pros
perity, the legal tender clause to the law au'
thorizing the issue of currency by the nation.
al government should be repealed, to take eff:
feet as to all contracts after day fixed in re.
pealipg the act, not to apply to payments OF
salaries by the government, or for other ex'
penditures now provided by law to be paid in
currency. In theinterval pending between
repeal and final resumption, provision should
be made by which the secretary of the treasu-
ry can obtain gold as it may become necessary
from time to time, from the date when specie
redemption commences. To this might be
added revenue in excess of expenditures to
insure an accumulation of gold in the treasu-
~ to sustain redemption. l commend this
subject to your consideration, believing that
favorable solution is attainable, and Preached
by this Congress that the present and future
generations will ever gratefully remember 1T
as their deliverer from thraldom of evil and
disgrace. With resumption free banking may
be authorized with safety, giving full protec-
tion to bill holders, which they have under
existing laws Indeed, would regard free
banking as essential. 1t would give proper
elasticity to the currency, as more currency
should be required for the transaction of le-
gitimate business new banks would be started
and in turn banks would wind up their busi-
ness when it was found that there was su-
perabundance of currency. The experience
and judgment of the people can best decide
just how much currency is required for the
transaction of the business Of the country. 1t
is unsafe to leave the settlement of this ques-
tion to Congress, the secretary of the treasury
or the executive. Congress should make the
regulations under which banks may exist, but
should not make banking a monopoly, by
limiting the amount of redeemable paper cur.
rency that shall be authorized. Such impor-
tance do 1 attach to this subject and so ear
nestly do I commend it to your attention, that
I give it prominence by introducing it in the
beginning of this message.


During the past year nothing has occurred
to disturb the general friendly and cordial re-
lations of the United States with the other
powers. The correspondence submitted here
with between this government and its diplo-
matte representatives, as also with the repre-
sentatives of other countries, shows satlstac-
tory condition of all questions between the
United States and the most of those countries,
and with few exceptions, to which reference
is hereafter made, the absence of any points
of difference to be adjusted.


The notice directed by the resolution of
Congress of June the 18th, 1874, to be given
to terminate the convention of July the 18th,
1858, between the United States and Belgium,
has been given and the treaty will according
ly terminate on the first day of July, 1875.
| This convention secured to certain Belgian
vessels entering the ports of the United States
exceptional privileges which are not accorded
to our own vessels. Other features of the con-
venton have proved satisfactory and have
tended to the cultivation Of mutually benet-
cial commercial intercourse, and the negotla-
tions which have been invited will result in
the consummation of another treaty which
may tend to the interests Of both countries.
Our relations with China continue to be friend
ly. During the past year the fear of hostili-
| ties between China and Japan, growing out
of the landing of an armed force upon the Is
land of Formosa by the latter, has occasioned
uneasiness 1t is earnestly hoped, however,
that the difficulties arising from this cause
will be adjusted, and that the advance of civ
iization in these empires may not be retarded
| by state of war. In consequence OF the
part taken by certain citizens of the United
States in this expedition, our representatives
in these countries have been instructed to i'm
press upon the governments of China and ia
pan the firm intention ofthis country to main
tain strict neutrality in the event of hostil-
ties, and to carefully prevent any infraction OF
law on the part of our citizens. In connec.
tion with this subject call the attention of
Congress to generally conceded fact, that
the great proportion of the Chinese immi-
grants who come to our shores, do not come
voluntarily to make their homes with US and
their labor productive of general prosperity,
but come under contracts with head men who
own them almost absolutely. In a worse
form does this apply to Chinese women. Hard
ly perceptible per centage Of them peform
any honorable labor, but they are brought for
shameful purposes to the disgrace of commu-
mites where settled, and to the great demor-
alization of the youth of those localities. If
this evil practice can be legislatcd against, it
will be my pleasure as we'll as duty to enforce
any regulation to secure so desirable an end.


tits hoped that negotiations between the gov
ernment of Japan and the treaty powers look
ing to the further opening of the empire, and
to the removal of various restrictions upon
trade and travel, may soon produce the results
desired, which cannot fail to enure to the bene'
fit of all the parties Having, on previous oc'
casions, submitted to the consideration of Con.
gress the proprety of the release of the Japa'
nese government from the further payment OF
the indemnity, under the convention of Octo-
Der %, 1864, and as no action had been taken
thereon, it became my duty to regard the OBJ
| legations of the convention as in force, and as
the other powers interested had received their
portion of the indemnity in full, the minister
of the United States in Japan has, in behalf
of the government, received the remainder OF
the amount due to the United States under
the convention of Simonoseky. submit the
propriety Of applying the income of part, il
not the whole Of this fund, to the education
in the Japanese language, of number Of
young men to be under obligations to serve
the government for a specified time, as inter
prefers, at the legation and the consulates in
Japan. A limited number of japanese youths
mi ght, at the same tme be educated in our
own vernacular, and mutual benefits would
result to both governments. The importance
of having our own citizens competent and ia


miliar with the language of Japan, to act as
interpreters and in other capacities connected
with the legation and the consulatcs in that
country, cannot readily be overestimated