Year: 1874

Since the convening of Congress one yea,
ago, the nation has undergone q prostration
III business and industries such as has
not been witnessed with us for many wears
Speculation as to the causes for this
prostration might be indulged in without
pfont, because as many theories would be ad-
vanced as there would be Independent writers
those who expressed their own views, with
out borrowing upon the subject, without in
dulglng in theories as to the cause of this
prostrahon. Therefore, l will call your atten-
ton only to the fact, and to some questions as
to which it would seem there would be no
disagreement.


The Financial Situation.


During this prostration two special ele
ments OF prosperity have been most abundant.
labor and capital. Both have been largely I'M
employed. Where security has been I'M
doubted, capital has been attainable at very
moderate rates. Where labor has been want
ed, 1t mas been found in abundance at cheap
rates compared with what of the necessaries
OF lie could be purchased with the wages
demanded. Two great elements of prosperity
therefore have not been denied us. A third
might be added: Our soil and climate are un-
rivaled within the limits of fcontiugous territory
under dss nationality, for its varieties of pro-
ducts to feed and clothe the people and in the
amount of surplus to spare to feed less fav-
ored people. Therefore, with these facts in
view, it seems to me that wise statesman
ship 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.


The debt abroad is the only element that
can with always sound currency, enter into
off RI I


in the industries and prosperity of our people.
A great conflict for national existence made
necessary for temporary purposes, the
raising of large sums of
money from whatever source attainable II
made necessary in the wisdom of Congress.
do not doubt their wisdom in the premises
regarding the necessity of the times to devise
system OF national currency which 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 for
the happiness or prosperity of a people, and
involving, both directly and indirectly, for
eign Indebtedness. The currency being of
fuctuating value, and therefore unsafe to
hold for legitimate transactions, this money
became subject of speculation
in itself. These two causes however
have involved us in foreign
Indebtedness contracted in good faith by bor-
rover and lender, which should be paid in
coin and according to the bond agreed upon
when the debt was contracted-gold or its
equivalent. The good faith of the govern
ment can not be violated towards creditors
without national disgrace, but our commerce
should be encouraged, American shipbuilding
and carrying capacity increased, foreign
markets sought for the products of the
soil and manufactures, to the end
that we may be able to pay
the debts, where new market can be created
for the sale of products, either of the soil, the
mine or the mandatory. A new means is
discovered of utilizing our idle capital and la
Dor to the advantage of the whole people; but
in my Judgment the first step towards ac-
complishing this object is to secure a curren-
cy good wherever civilization reigns-one
which if it becomes superabudant with
one people will find market
with some other, currency which has as its
basis the labor necessary to produce it, which
will give to it value. Gold and silver are
now the recognized mediums of exchange the
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 legal tender system was
adopted and the debt contracted
there should be no delay, nnrtainly no ,,nneo-
essary delay, in fixing by legislation method
by which we will return to specie. To the
accomplishment of this end 1 invite your
special attention. l believe firmly that there
can be no prosperous and permanent revival
of business and industries until policy is
adopted with legislation to carry it out
looking to a return to specie
ho ,s nnc m fbo+ +1,o ol,A
and speculative classes may think it of value
to them to make the So called money abun-
dant until they throw portion of their bur-
dens upon Others, but even these l 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 the protective
industries is needed by all classes, and by
none more than the holders of property of
whatever sort, with debts to liauidate from
the realization Of its sale. But admitting
that these two classes of citizens are to be
benefited by the expansion, would it be
honest to give it, Would not the general
loss be too great to justify such reliefs
Would it not be just as honest and prudent
to authorize each debtor to issue his own
legal tender to the extent of his liabilities,
than as do this: Would it not be safer, for
fear of an over issue by unscrupulous credi-
tors, to say that all debt obligations are OBJ
liberated in the United States and now we
commence anew, each possessing all he has
at the time free from eneum-
brances These propositions are too
absurd to be entertained for a moment by
thinking OF honest people; yet every delay in
preparation for final resumption partakes of
this dishonesty, and is only less in degree
and fhe homo ic hold ont tha+
season will at last arrive for the good work of
redeeming our pledges. This will never come
in my opinion except by positive action by
Congress,-only national disaster, which
will destroy for a time at least the credit of
the individual and the State at large. A
sound currency might be reached by total
bankruptcy and discredit of the integrity Of
the nation and of individuals.


l 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 career of prosperity to last for
many years, and to save the credit of the ma
ton and of the people. Steps toward
a return to specie basis are
the great requisites of this devoutly
to be sought for end. There are others which
1 may touch upon hereafter. A nation deal
ing in a currency below that of specie in
value labors under two great disadvantages !:
First, having no use for the worlds acknowl-
edged mediums of exchange gold and silver,
these are driven out of the country because
there is no demand for their use.
Second, the medium of exchange in use being
of a fuctuating value, for after all it is
only worth the price what it will purchase
of gold and silver, metals having an intrinsic
value just in proportion to the honest labor
it takes to produce them.A larger margin must
be allowed for profit by the manufacturer and
producer. 1t is months from the date of
production to the date of realization. Inter
est upon capital must be charged and the risk
Of fuctation in the value of that
which is to be received in pay
ment added. Hence the the high prices
act as a protection to the foreign producer
who receives nothing in exchange for the
products of his skill and labor, except cur
rency good at a staple value the world over.
1t seems to me that nothing is clearer than
the greater part of the burden of the exist
lug prostration for the want of a sound finan-
cial system falls upon the working
man, who must after all produce
tie wealth, and the salaried man who SUPER
intends and conducts the business. The
burden falls upon them in two ways by the
deprivation of employment and by the de-
creased purchasing power of their salaries.
1t is the duty of Cong1ess to devise the