Year: 1875

WASHINGTON. Jan. 14-The president sent
to the senate to-day the following message
accompanying his approval of the new finance
bill:


To the Senate of the United States


Senate bill No. 1914, to provide for the re-
sumption of specie payments, is before me,
and this day receives my signature of approval.
7 venture HpOn this unusual method Of con-
veving notice of my approval to the house in
which the measure originated, because Of its
great Importance to the country at large, in
order to suggest further legislation which
seems to me essential to make this law effect
ual. It is a subject Of congTatulation that a
measure has become n law which fixes the date
when specie resumption shall commence, and
implies an obligation on the part of congress.
il in its power to give such legislation as NAV
prove necessary to redeem this promise To
this end respectfully call your attention to a
few suggestions


I. The necessity for Increased revenue to
carry ont the obligation of adding 70 the sink
ing fund annually one per cent. The interest
on the public debt amounts now to S34, ,006, 600
per annum. and to carry out the promises of
this measure to redeem under certain cOntIn
gencies $50, 000, 900 of the present legal-ten-
ders, and without CONTRACTING the national
currency now in circulation. How to increase
the suTpius revenue is for congress to devise.
But / will venture to suggest that the duty on
tes and coffee might be restored without per
manently enhancing the cost to consumers.
and that ten per cent reduction of the tariff
on articles specified in the law OF June, 1872,
be repealed. The supply Of tea and coffee
already on hand in the United States. would.
in all probability, be advanced in price by
adopting this measure. hut it is known that
the adoption of free entry to these articles of
necessity did not cheapen materially, or en-
hance the profits OK the country producing
them. or of middlemen of those countries who
have the exclusive trade in them.


2. The first section of the bill now under
consideration rrovides that the fractional
afaI1 ha r-adaarnad in ei1var noIv0
rapidly as practicable. There is no provision
preventing the fuctuatiOn in the value of
paper currency, or the gold premium advanc-
ing over ten per cent above the currency in
use. Tt is probable, almost certain, that silver
would be bought up for expectation as fast as
it was put out, until change would become so
scarce as to make the premium on it equal to
the premium on gold or sufficiently high to
make it no longer profitable to buy for export.
thereby causing a direct loss to the community
at large, and great embarrassment to trade.
As the present law commands final resumDtIOn
On the fret of January, 1879, and the gold re-
ceipts by the treasury are lar2er than the gold
payments, and the currency receipts than cur
rency payments, thereby making monthly sales
OF gold necessary to meet current currency ex-
penEeF. it occurs to me that these difficulties
might be remedied bv authorizing the score
tary of the treasury to redeem legal tender
notes whenever presented in sums of not less
than 800 and multiples thereof at the pre-
mium for gold of ten per cent. less interest,





the 1st of January 1875. to the dsfe OF put
ting this law into operation. and diminishing
this premium at the same rate until final re-
suit; changing the rate of premium demanded
from time to time, as the interest amounts to
one-quarter of one per cent. I suggest this
rate of interest, because it would bring cur
rency at par with gold at the date fixed by the
lsw for the final resumption. I suggest ten
per cent as the premium at the beginning,
because I believe this rate would secure the
retention of silver in the country for change.
The provisions OF the third section Of the act
Will prevent combinations being made to eX-
haust the treasury Of coin. With such law.
it is presumable that no gold would be called
for not required for legitimate business
purposes. When large amounts of coin
should be drawn from the treasury, cores
pondingly large amounts OF currency wOnld
be withdrawn from circulation, TINS causing
sufficient stringency in currency to stop the
outflow of coin, and the ADVANTAGES Of cur
rency, of fixed known value. would also be
reached. In my opinion, by the enactment of
s5leh law, business and the industries would
revive, and the beginning of prosperity,
on firm basis. would be reached. Other
means of increasing the reveI ue, than those
suggested, should probably be devised, and
also other legislation, in fact, to carry out the
first section of the act Another mint be-
comes necessity. With the present facilities
for coinage, 1t would take period beyond
that fixed by law for final specie resumUtiOn
to coin silver necessary to transact the busi-
ness Of the country. There are now smelling
furnaces for extracting silver and gold from
ores brought from the mountain territories
into Chicago. st. Louis and omaha. three in
the former city. and as much of the change
required will be wanted in the Mississippi
Valley States, and as metals to be coined
come from west of those states. and 8s I
understood the charges for transportation
of bullion from either Of the cities named
to the mint at Philadelphiajo or New York
city, amount to four dollars for each one
thousand dollars worth, with an equal ex-
pense for transportation back, it would seem
fair argument in favor of adopting one or
moro Of these cities a place or places for
the establishment of new coinage facilities. I
have ventured upon this subject with great
difhdence, because it is. unusual to approve
measure, as do this, if no further legislation
is attainable at this time and TO announce the
fact by message. But do so because I feel
that it is a subject of such vital importance to
the whole country, that it should receive the
attention of, and be discussed by, congress
and the people, through the press and in every
way, to the end that the best and most satisfac-
tory course may be reached, of executing what
I deem most beneficial legislation on most
Vital question, to the interests and prosperity
of the nation. q. S. GRANA


Executive Mansion, JAN IA, 1875.