Year: 1874

perity to last for many years, and to
save the credit of the nation and of the
people. The steps toward the return
to a specie basis are the great requi-
sites to this devoutly to-be-sought-for
end. There are Others which j may
touch upon hereafter A nation, deal
ing in currency below that of specie
in value, labors under two great disad-
vantages. First-Having no use for
the worlds acknowledged medium of
exchange-gold and silver These are
driven out of the country because there
is no demand for their use. Second
The mediums of exchange in use be-
ing of huctuating value; for, after
all, it is only worth just what it will
purthase Of gold and silver-metals
having an intrinsic value just in pro-
portion to the honest labor it takes to
produce them A large margin must
be allowed for profit by the manufac-
turers and producers. 1t is months
from the date of production to the date
of realization. Interest upon capital
must be charged, and the risk of fluc-
tuation in the value of getting that
which is to be received i'll payment
added. Hence, high prices act as
protection to the foreign producer, who
receives nothing in exchange for the
product of his skill and labor except q
carrency good at n stable value the
world over It seems to Ele that moth
ing is clearer than that the greaterpart
of the burden of the existing prostra-
tion of sound financial system falls
upon the working man, who must,
after all, produce the wealth, and the
salaried man who superintends and
codducts business. The burden falls
on them in two ways: by the depreci-
alton of employment and by the de-
creased purchasing power of their sal
ary.


THE REMEDY.


1t is the duty of Congress, not mine,
to devise the means of correcting the
evils which are acknowledged to exist;
but [ will venture to suggest two or
three things which seem to me as abb
solutely necessary to return to specie
payment, the first great requisite as q
return to prosperity. The legal tender
clause to the law authorizing the issu-
ing of currency by the National Gov
ernment should be repealed to take ef-
feet as to all contracts entered into
after day fixed in the repeating act.
This should not apply, however, to
payments Of salaries by the Govern
ment or for other expenses now pro-
vided by law to be paid in currency.
In the interval pending between re-
peal and final resumption, provision
should be made by which the Secre-
tary of the Treasury can obtain gold as
it becomes necessary from time to
time from the date when specie re-
sumption commences. To this might
and should be added revenue suffi-
GENTLY in excess of expenses to insure
an accumulation of gold in the Treas
ury to sustain redemption. | recon-
mend this subject to your careful con-
sideration, believing that favorable
solution is attainable and that if
reached by this Congress that the
present and future generations will
ever gratefully remember it as their
deliverer from a thraldom of evil and
and disgrace.


STRICT NEUTRALITY OF THE GOVERN


MENT ON EASTERN QUESTIONS.


Our representatives at China and
Japan have been instructed to impress
3apah the '1frfh" fifteiitfurf G1r 1r rhip 1Jlnf
try to maintain q strict neutrality 10
the event of hostilities, and carefully
prevent any infraction Of the law on
the part of our citizens.


| CHINESE 1MMlGRATION.


In connection with this subject,
call the attention of Congress to q gem
orally canceded fact: that the great
proportion of Chinese immigrants who
come to our shores do not come osten-
sibly to make their homes with us,
and their labor is not productive of
general prosperity, but they come
under contract with head men, who
own them Utmost absolutely. In a
worse form does this apply to Chinese
per cent. of them perform hon
orable labor; they are brought for
shameful purposes to the disgrace
of the community where settled and
to the great decentralization of the
youth of those localities. If this evil
practice can be legislated against, it
will be my pleasure as we'll as duty to
enforce any regulation to insure so
desirable an end.


REVISING THE TREATIES OF JAPAN.


1t is hoped that the negotiations be-
tween the Government of Japan and
the treaty powers looking to the open
ing of that empire. and to the removal
OF various restrictions upon trade and
travel, may soon produce the result





the benefit of all parties.


Having on previous occasions sub
mitted to the consideration of Con-
gress the policy of the release of the
japanese Government from the further
payment of the indemnity under the
Convention of October %, 1864, and as
no action had been taken therein, il
became my duty to regard the obliga-
tlons OF the convention as in force, and
as the other powers interested have
received their share of the indemnity
in full, the Minister of the United
States in Japan has, in behalf of this
Government, received the remainder
of the award to the United States un-
der the Convention of Simonoseki.


PROPOSED USE OF THE JAPANESE IN
| DEMNITY.


/ submit the propriety of APPLYING
tne increase OF q part If not the whole
of this fund to the education in the
japanese language of number of
young men, to be under obligations to
serve the Government for specified
time as interpreters at the lelgation
and consulates in Japan. A United
number OF Japanese youths might at
the same time be educated in our YER
nacular, and mutual benefit would
result to the Governments.


The Importance of having our own
citizens competent and familiar with
the language OF Japan to act as inter-
prefers and in other capacities con-
nected with the legation and consul
lates in that country cannot be readi-
| ly over estimated.