Year: 1874

USe. Secondly, the medium of exchange


being OF q huctatinQ value, for it is


only worth just what it will purchase


of gold and silver metals, having an


intrinsic value just in proportion to the


honest labor i5 takes to produce them,


q large margin must be allowed for a


profit by the manufacturer and produ-
Ger. In the months from the date of
production to the date of realization.
interest upon capital must be charged,
and the risk of h1etation in the value
of that which is TO be received in pay
ment added. Hence high prices act as
\ a protection to the foreign producer,
who receives nothing in exchange for
the product of his skill and labor, except
a currency good at a stable value the
world over.


THE POOR MAN BEARS THE BRUNT.


Tt seems to me that nothing is clearer
/ than that the greater part of the burden
of the existing prostratlon, for tine want
of sound financial system, falls upon
1 the Workingman, who must, after all,
produce the wealth, and the salaried
man who superintends and conducts the
business. The burden falls upon them
two ways: By the deprivation of
employment, and by the decreased pur-
| chasing power of their salaries. It Is
the DUTY of congress to devise the
method of correcting the evils which
are acknowledged to. exist, and not
mine. But viii venture to suggest
/ two or three things which seem to me
es absolutely necessary to a return to
specie payments. .......
REPEAL OF TIE LEGAL TENDER CLAUSE


fr URGED.


The first great requisite in a return to
prosperity is, that the legal tender
clause to the law authorizing the issue
of currency by the national government,
should be repealed, to take effect, as TO
all contracts entered into after a day
| fixed in the repeating act, not to apply,
| however, to the payments of salaries by
| the government, or other expenses now
provided by law to be paid In currency.
| In the interval and pending between re-
peal and final resumption, provision
should be made by which the secretary
of the treasury can obtain gold as it
may become necessary, from time to
time, from the date when specie resump-
tion commenced. To this might and
should be added a revenue sufficiently
in excess of expenses to insure an accu-
mulstiOn of gold In the treasury to sus
tain redemption. I commend this sub
iect to your careful consideration, be-
IieviDg that favorable solution is at
tainabIe, and that if reached by this
congress, present and future generations
will ever gratefully remember it as their
deliverer from a thraldom of toll and
disgrace.


FREE BANKING ESSENTIAL.


With resumption free banking may be
authorized with safety, giving full pro-
lection to bill-holders which they have
under existing laws. Indeed, / would
regard free banking essential. It would
give proper elasticity to the currency.
AS more currency should be required
for the transaction of legitimate busi-
ness, new banks would be started and In
turn banks would wind up their busi-
ness when it was found there was a su-
perabundance of currency. The expe-
rience and Judgment of the people can
best decide Just how much currency is
required fOr the transaction of the busi-
ness of the country. 1t Is unsafe to
leave the settlement of this question to
congress, the secretary of the treasury
or the executive. Congress should
make the regulation under which banks
may exist, b1t should not make banking
monopoly by limiting the amount of
redeemsble paper currency that shall be
authorized. Such Importance do 1 at
tach to this subject and so earnestly do
I commend it to your attention, that
give it prominence by introducing it at
the beginning of this message,


OUR FOREIGN RELATIONS.


During the past year nothing has oc-
CURED to disturb the general, friendly
and cordial relations of the United
States with other powers. The CORES
pondence submitted herewith between
this government and its diplomatic rep
resentatives in other countries, show
satisfactory condition of all questions
between the United States and the most
of those countries, and, with few e1-
ceptions, to which reference is hereafter
made, the absence of any points OF diff
ference to be adjusted.


BELGIUM.


The notice directed by the resolution
of congress of June 18, 1874, to be
given to terminate the convention of
July II, 1853, between the United States
and Belgium, has been given, and the
treaty viii accordingly terminate on the
first day of July, 1875. This conven-
ton secured to certain Belgium vessels
entering the ports of the United States,
! exceptional privileges which are not ac-
| corded to our own vessels. Other feat
ures of the convention have proved sat
isfactory, and have tended to the Guilt
vatiOn of the mutually beneficial COM
mercial intercourse and friendly Tela-
tions between the two countries. I hope
that the negotiations which have been
instituted will result in the celebrating
of another treaty which may tend to the
interests of both countries.


CHINA. -
Our relations with China continue TO
be friendly. During the past year fear
of hostilities between China and Japan,
growing out of the landing of an armed
force upon the island of FOrmosa by
the latter, has oceasioned uneasiness
It is earnestly hoped, however, the diff
ficulties arising from this cause Will be
adjusted, and that the advance of civili-
zation in those empires may not be re-
tarded by state of war.


In consequence of the part taken by
certain citizens of the United States IN
this expedition, our representatives IN
those countries have been instructed to
impress upon the governments of China
and Japan the firm intention of this
country 70 maintain strict neutrality IN
the event of hostilities, and carefully
prevent any infraetion of law on the
part Of our citizens.


AH-sN.


In connection with this subiect, I call
the attention of congress 70 q generally
known fact that the great proportion of
Chinese eInigrants who come to our
shores do not come voluntarily TO make
their homes with us and their labor
productive of the general prosperity,
but come under contract with head men,
who Own them almost absolutely. IN a
worse form does this apply to the Chi
nese women. Hardly a perceptible
percentage of them perform any honor
able labor, but they are brought here