Year: 1874

is only worth just what it will purchase Of
gold and silver metals having an intrinsic
takes to produce them, large margin


must be allowed for profit by the manufac-


turer and producer. It is months from the


date of production to the date of realization.


Interest upon capital must be charged and


the risk OF Auctuation 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 q currency good at q staple


value the world over.


that the greater part Of the burden of the
existing prostration for the want Of
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





Twill venture to suggest ta or three things


which seem to me as absolutely necessary to


return to specie payments. the first reat
| requisite in return to prosperity.


law law authorizing & n'' the ''@'s issue e 'td of


currency by the national government should
| be repealed, to take effect as to all contracts
| after a day fixed on, 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 mig ght and should be
added revenue sufficiently in excess of ex-
penses to insure an accumulation of gold in
| the Treasury to sustain redemption. 1com-
| nend this subject to your careful considera.
attainable, and that if reached 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-


banking as essential. It would give deeper
| elasticity to the currency. As more currency
! would be required for the transaction Of le-
! gitimate business, new banks would be start
ed, and in turn banks would wind up their
! business when it was found there was su-
perabundanoe of currency.


The experience and judgment of the peo-
PIE can best decide just how much currency
| IS required for the transaction of the bust
ness Of the country. It is unsafe to leave
the settlement Of this question to Congress,
tive. Congress should make the regulation
under which banks may exist, but should


lot make banking q monopoly by limiting
the amount OF redeemable currency


that shall be authorized Such


Importance do attach to this subject
and so earnestly dDI commend it to your


attention that give it prominence by intro


ducing it at the beginning of this message.


FRIENDLY RELATIONS WITH FOREIGN pow


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 SUBJ


mitted between this government and its di-


plomatlc representatives to other coun-


tries shows satisfactory condition of


all questions between the United States


and OF her countries, and with few ex-


ceptlons 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 II, 1874, to be given to


terminate the convention of July II, 1863,
between the United States and Belgium. has


been given, and the treaty will accordingly


terminate on the lst day Of July, 1876. Thus
convention would retain to Belgium vessels


entering the ports Of the United States


exceptional privileges which are not
accorded to orr own vessels
Other features Of the convention have
proved satisfactory and have lad to a culti-
vation Of mutually beneficial commercial


intercourse and friendly relations between
which have been instituted will result in
the celebration Of another treaty which may
tend to the interest Of both countries.
Our relations with China continue friend
ly. During the past year the fear OF hostili-
ties between Japan and China, growing out


of the landing Of an armed torce upon the
Island OF Formosa by the latter, has occa-
stoned uneasiness. 1t is earnestly hoped the
difficulties arising from this cause, will


be adjusted, and that the ad-


vance Of civilization in t..ese


empires may not be retarded by state OF


War. In consequence of the part taken by GER
tain citizens OF the United States in this ex.
pedition, our representatives in those
countries have been instructed to impress
| upon the governments of China and Japan
the firm intention of this country to main
tain strict neutrality in the event of hostili-
ties, and carefully prevent any infraction OF
the law on the part OF our citizens


CHINESE IMMIGRATION.


In connection with this subject call the
attention OF Congress to generally conceded
fact, that the great proportion Of Chinese
immigrants who come to our shores, do not
come vOluntarilv to make their homes With