Year: 1874

| to me that nothing is clearer than the
greater part of the burden of the exlstln
prostration, for the want of sound
nancial system, falls upon the working
man, who must, after all, produce the
wealth, and the salaried man who super
;ntande and conducts business. The
burden falls upon them in two ways by
the deprivation of employment and by
the decreased purchasing power of then
salaries. IL is the duty of Congress to
devise a method of correcting the evils
which are acknowledged to exist, and not
mine but will venture to suggest two
or three things which seem to me abso-
Iutelv necessary to return to specie pay
mepts. The first great requisite in a
return to specie prosperity is that the
le6al-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Government should be repealed, to take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 day fixed in the repeating act, but
not to apply, however, to payments OF
salaries by the Government or other ex-
penses now provided by law to be paid in
currency. In the interval pending be-
tween the repeal 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-
ton commenced. To this might and
should be added revenue sufficiently in
excess of expenses to insure an accumula-
ton of gold in the Treasury to sustain
redemption.


l commend this subject to your care
full consideration, believing that favora-
BILE solution is attainable, and that if
reached by this Congress the present and
future generations will ever gratefully
remember it as their deliverer from a
thralldom of evil and disgrace. With re-
demption, free banking may be authorized
with safety, giving the full protection to
bill holders which they have under the
existing laws Indeed, I 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 1t was found that
there was a superabundance of currency.
The experience and judgment of the peo-
pie can best decide just how much cur
rency is required for the transaction of
the business 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





exist, but should not make banking
monopoly by limiting the amount of re
deemable paper currency that shall be
authorized. Such Importance do attach
to this subject. and so earnestly do COM
mend it to your attention. that | give 1t
prominence by introducing it at the be-
ginning of this message.


During the past year nothing has oc-
Cured to disturb the general friendly
and cordial relations of the United States
with other powers. The correspondence
submitted herewith, between this Gov
ernmeut and its diplomatic representa-
tives of other countries shows satlsfac-
tory condition of all questions between
the United States and most of those coun-
tries, 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
Congress of June IL, 1874, to be given to
terminate the Convention of July II, 1898,
between the United States and Belgium,
has been given, and the treaty will ac-
cordinglv terminate on the first day of
July, 1875 This Convention secured to
certain Belgian vessels entering the ports
of the United States exceptional privl-
leges which are not accorded to our own
vessels. Other features of the Conven-
ton have proved satisfactory, and have
tended to the cultivation of the mutually
beneficial commercial intercourse and
friendly relations between the two coun-
tries 1 hope that negotiations which
have been invited will result in the cele
bration of another treaty which may tend
to the interests of both countries.


Our relations with China continue to
be friendly During the past year the
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 occasioned uneasiness.


1t is earnestly hoped, however, that the
difficulties arising from this cause will be
adjusted and that the advance of civiliza-
ton in these Empires may not be retard-
ed by state of war. In consequence of
the part taken by certain citizens of the
United States in this expedition, our
representative in those countries have
been instructed to impress upon the Gov
ernments of China and Japan the firm
intention of this country to maintain
strict neutrality in the event of hostili-
ties, and carefully prevent any infraction
of law on the part of our citizens. In con-
nection with this subject, call the atten-
ton of Congress to the generally conceded
fact that the great proportion of Chinese
immigrants who have come to our shores
do not come voluntarily, to make their
homes with us and their labor productive
of general prosperity, but come under
contract with head men who own them
almost absolutely. In worse form does
this apply to Chinese women. Hardly
perceptible percentage of them perform
any household labor, but they are brought
for shameful purposes. to the disgrace of
communities where settled, and to the
great decentralization of the youth of
those localities. If this bad practice can
be legislated against, will be my pleasure
as well as duty to enforce any regulation
to secure so desirable an end.


1t is hoped that the negotiations be-
tween the Governments of Japan and the
other powers looking to the further open
ing of the Empire and to the removal of
various restrictions upon trade and travel
may soon produce the results desired,
which can not fail to inure to the benefit
of all parties.


Having on previous occasions submitted
to the consideration of Congress the pro-
priety of the release of the japanese Gov
ernment from the further payment of
indemnity under the convention of Octo-
Der 29, 1854 and as no action had been
taken thereon, it became my duty to
to regard the obligations of the conven-
ton as in force, and as the other powers
interested have received their portion of
the idemnitY in full, the Minister of the
United States at Japan has been notified
that this Government will receive the
remainder due to the United States un-
der the convention of Simonsky. l sub
NIT the propriety of applying the income
of a part, if not the whole of this fund to
the education in the japanese language
of a number of young men, to be under
obligations to serve the Government for
specified time as interpreters at the Le-