Year: 1874

These driven out OF the country because
there is no demand for their use. Second, the
medium OF exchange In use being OF
nuctuatipg value, for after all 1t Is
only worth Just what n will purchase OF gold and
silver metals having an intrinsic value just In
proportion to the honest labor it takes to produce
them. larger margin must be allowed
for pront by the manufacturer and producer.
1t Is months from the date OF pro ducton
to the date OF realization. Interest on capital
must be charged and the risk OF nuctuation In the
value OF that W nich is to be received In payment
added. Hence high prices, acting as protection
to the foreign producer, who receives nothing In
exchange for the product OF his skilled labor ex'
| cept currency good at staple value the world
over.


II seems TO me that nothing is clearer than that
the greater part OF the burden OF existing prostra


tlon for the want OF sound financial system, falls
4 upon the workingman, who must after all. pro-
| duce the wealth. anu the salaried man who SUPER
| Intends and conducts business. The burden falls
upon them in two ways: by the deprivation OF en-
| ployment and by the decreased purchasing power
OF their salaries.


THE PRESIDENTS REMEDIES.
1t is the duty OF Congress to devise the method
OF correcting the evils which acknowledged to
exist and not mine But will venture to suggest
two three things which seem to me as absolutely
necessary to q return TO specie payments-the first
great requisite IN a return to prosperity.


REPEAL OF THE LEGAL TENDER.


The legal tender clause TO the law authorizing
the issue OF currency BY the national government
should be repealed take enect to all contracts
entered into after day fixed in the repeating act;
not to apply, however, to payments OF salaries by
government or for other expenditures now pro-
vided for by law to be paid IN currency. In the
interval pending between the repeal and dnal
resumption provision should be made by
which the Secretary OF the Treasury can OBJ
tam gold IL may become necessary from
time to- time from the date when specie redemp-
tlon commences. To this might and should be
added revenue sufficiently in excess OF expenses
to insure an accumulation OF gold in the Treasury
to sustain redemption. ! commend this subject
TO your careful consideration, believing that
favorable solution is attainable and that II
reached by this Congress, that the present and
future generations Will ever gratefully remember
1t as their deverer from a thraLdom OF evil and
disgrace.


FREE BANKING.


With resumption, free banking may be author.
ized with safety, giving the full protection to
bill holders which they have under exist
Ing 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 legitimate business new banks
would be started, and in turn banks would wind
up their business when it was found there was a
superabundance of currency. The experience and
judgment OF the people can best decide just how
much currency required for the transaction OF tae
business OF the country. 1t is unsafe to leave the
settlement Of this questiOn to Congress, the sec.
retary OF the Treasury or the Executive. Con-
gress should make the regulation under which
banks may exist, but should not make banking q
monopoly by limiting the amount or redeemable
paper currency chat shall be authorized. Such
importance do attach to this subject and SO
earnestly do commend it to your attention tnat
give it prominence by introducing 1t at the be-
ginning OF this Message.


FRIENDLY RELATIONS WITH OTHER POWERS


During the past year nothing has occurred to
disturb the general friendly and cordial relations
OF the United states with other Powers The
correspondence submitted herewith between
this government and its diplomatic representa-
tives, as also with the representatives OF other
countries, shows q satisfactory condition OF all
questions between the United States and the N ost
OF those countries, and with few exceptions, to
which reference is hereafter made. the absence Of
any points OF difference to be adjusted
THE UNITED STATES AND BELGIUM.
The notice directed BY the resolution OF Con-
gress OF June II, 1874, to be given to terminate
| the convention OF July II, 1858, between
the United States and Belgium has been given
and the treaty win accordingly terminate on the
1st day or 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 convention have proved satisfactory, and
have tended to the cultivation OF mutually bene-
fetal commercial intercourse and friendly relation
between the two countries. hope that the negotia
tions which have been invited will result in the
celebration OF another treaty which may tend to
the interests OF both countries.


CHISA-THE FoRMosAH DIFFICULTY
Our relations with China continue to be
friendly. During the past year the fear OF
hostllitles between China ana Japan. grow.
ing out Of the landing OF an armed force
upon the Island OF Formsoa by the latter, has
occasloned uneasiness. 1t is earnestly hoped how
ever, that the difficulties arising from this cause
will be adjusted, and that the advance OF civiza-
tion 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 repre- sentatives in those countries
have been instructed to impress npon the govern
ments OF China and Japan the firm intention OF
this country to maintain strict neutrality in the
event or nostilines and to carefully prevent any
infracton OF law on the part Of our citizens,


CHINESE IMNIGRANTs TO THE UNITED STATES


In connection with this subject call the attention
OF congress 10 generaly cOnceueu lacb tHdJ Ine
great proportion OF the Chinese immigrants who
come to shores do not come voluntarily to make
their homes with us and their labor productive or
general prosperity, put come under contracts with
head men, VINO own them almost absolutely. In
worse form does 1t apply to Chinese women.
Hardly perceptible percentage OF them perform
any honorable labor, but they boughtfor shame
fu purposes to the disgrace OF the communities
where settled, and to the great decentralization OF
the youth OF those localities. II this evil practice
can be legislated against 1t Will be my pl easure as
well duty to enforce any resolution to secure so
desirable an end


JAPAN.


1t Is hoped that negotiations between the gov
/ ernment Of Ianan and treaty PnHers lnnkinu