Year: 1873

constitutional amendment to provide better
method of electing the President and Vice Pres
ident Of the United States, and also from the ne
cessty of such an amendment that there will
be submitted to the State legislatu, for ratif-
cation, such an improvement in Our conStltlt OF,
l suggest two others for your consideration:
first, to authorize the executive to approve of so
much of any measure passing the two HOT ses of
Congress, as his judgment may dictate, W tlout
approving the whole; the disapprGved portion
or portions to be subjected to the same rules as
now to wit: To be referred back to the House
in which the measure or measures originated,
and if passed by a two-thirds vote OF the two
houses, then to become a law without the ap-
proval of the President.


would add to this proviso that there
should be no legislation by Congress during the
last twenty-four hours of its sttlngs, except
upon vetoes, iu order to give the Executive an
opportunity to examine and approve, or disap
prove the bills understandingly.


Second, To provide an amendment than
when an ex ira session of Congress is convened
by Executive proclamation, legislation during
tile continuance of such extra session shall be
confined to such subjects as the Executive may
bring before it, from time to time, in writing.


The advantages to be gained by these two
amendments are obvious. One session in each
year is provided for by the Constitution,ln IN which
there are no restrictions as to the subjects OF
legislation by Congress- If more are required
it Is always in the power of Congress during it's
term of Office to provide for sessions at any
time.


The first of the Sc amendments would protect
the public against the many abuses and waste
of public m0neys which creep into the appro-
priation bills and other important measures
passing among the expiring hours of Congress,
to which, otherwise, due consideration cannot
be given


TREASURY DEPARTMENT.


The receipts of the Government from all
sources for the last fiscal year, were $685., 1885,
2O4, and the expenditures on all accounts $780,
345, 245, thus showing an excess OF receipts over
tn expenditures of $43, ,392, ,959; but it is not
probable that this favorable exhibit will be
shown for the present fiscal year. Indeed, it is
very doubtful whether, except with great
economy on the part of Congress in making ap-
prOrpiatons and the same economy i'll admins
tering the various departments Of government,
the revenue will not fall short of meeting the
actual expenses, including the interest on the
public debt.


1 commend to Congress such economy and
point out two sources where 1T seems to me it
might commence, to wit, in the appropriations
for public buildings in the many cities where
work has not been commenced; in the apprO
priatIols for river and harbor improvements in
those localities where the Improvements are of
but little benefit to the general commerce, aud
for Notifications.


There is still more fruitful source of expen
diture which will point out later in this mes





claims for losses incurred in suppressing the
late rebellion. would not be understood here
as opposing the erection of good, substantial
ana even ornamental buildings by the govern
ment wherever such buildings are needed. In
fact, approve OF the government owning its
own buildings in all sections of the country.
and hope the day is not far distant when it will
not only possess them, but will erect in the cap
ital Snitabe residences for all persons who now
receive communication for quarters or rent at the
government expense, and for the Cabinet, thus
setting an example to States which may induce
them to erect buildings for their Senators; but
1 would have the work conducted at a time
when the revenues of the country would abund
anty justify it. The revenues have materially
fallen off for the first five months of the pres
ent fiscal year from that which they were ex-
pc tied to produce, owing to the general panic
now prevailing, which commenced about The
middle of September last.


THE FINANCIAL PANIC.


The full effect of this disaster if it should not
prove blessing in disguise, is yet to be demOn-
strated. In either event. it Is yonr duty to heed
the lesson and provide by wise andwell consid
cred legislation, as far as it lies in your power
against its recurrence, and to take advantage Of
all benefits that have occurred.


My own judgment is that, however much in
dividuals may have suffered, one long step has
has been taken towards specie payments; that
we can never have permanent prosperity till a
specie basis is reached and that specie basis
cannot be reached and maintained till our ex-
ports, exclusive of gold, pay for our imports.
interest due abroad, and other specie obliga-
tiODs. and SO nearly SO as to leave an apprecia-
BILE accumulation of the precious metals in the
country from the products of our mines.


The development of the mines of precious
metals during the past year and the prospective
development of them for years to come are
gratifying in their results. Could one half OF
the gold extracted from the mines be retained
at home our advance towards specie payments
would be rapid.


required to keep all the industries of the coun-
try employed. Without this national as we'll
as individual bankruptcy must ensue. Undue
imitation ON the other hand, while it might give
temporary relief. would only lead to an infia-
ton of prices. The impossibility of competing
in our markets for the products of home skill
and labor and repeated renewals of present ex-
periences, ella sticity of our circulating medium
therefor and just enough Of it to transact the
legitimate business of the country and to keep
all industries employed, is what is most to be
desired.


The exact medium is specie, the recognized
medium of exchange the world over. That OBJ
tained we shall have currency of an exact de-
gree of elasticity. If there be too much of it for
the legitimate purposes of trade and commerce,
it will flow out of the country; if to9 little, the
reverse will result. To hold what we have and
to appreciate our currency to that standard, is
a problem deserving of the most serious con-
sideration of Congress.


The experience of the present panic has prov
ed that the currency of the country, based as it
is upon the credit of the country, is the best
that has ever been devised. Usually in time of
such trials currency has become wOrthless or
so much deprecated in value as to initiate the
value of all the neoessar'es uf life as compared
with the currency Every one holding it has
been anxious to dispose of it on any terms.
Now we witness the reverse. Holders of cur
rency hoard it as they did gold in former ex-
periences of like nature.


1t is patent to the most casual observer that
much more currency or money is required to
transact the legitimate trade of the country
during the fall and wiuter months when the
vast crops are being removed than during the
balance of the year. With our present system
the amount in the country remains the same
cumulation of all the surplus capital cf the
country in few centres when not employed
in the removing OF the crops, tempted thereby
by the offer Of interest on call loans.
Interest being paid, the surplus capital must
earn this interest, paid with profit. Being
subject to ''calp' it cannot be loaned only in
part at best TO the merchant or manufacturer
for a fixed term, Hence, no matter how much
currency there might be in the country, it
would be absorbed, prices keeping pace with
the volume, and panics, strngency and disas-
ters would ever be recurring with the autumn





the object to be attained fr>ti and next to that,
as far as possible, prevention Of the use Of
other peohles's money ip stock and other spe-
cies OF speculation. 70 prevent the latter it
seems TO me that one great step would be taken
hu prohibiting the national banks from paying
interest on depos,.ss. = nv recurring them to hold
their reserves in in their own vaults, and by for
cling them into resumption, though it would be
in only legal tender notes,


For this purpose / would suggest the estah-
lishment of Clearing houses for your considera-
ton. To secure the former, many plans have
been suggested. most, if not all of which, look
to me more like initiation OH the one hand, or
compelling the government on the other, to
pay interest without corresponding benefits up
on the surplus funds of the country, during the
season when otherwise employed.


submit for your consideration. whether this
difficulty might not be overcome by authorizing
the Secretary of the Treasury to issue at any
time to the nstional banks of issue any amount
OF their notes below fixed, percentage of their
issue, say forty per cent. upon the banks depos-
itiDg with the Treasurer of the United States
an amount of government bonds equal to the
amount Of notes demanded, the banks to forfeit
to the government, say four per cent. of the In-
terest accruing on the bonds so pledged during
the time they remain with the Treasury, as Sc
curity for the increased circulation; the bonds
supplied to be redeemable by the banks at
their pleasure, either in the whole or in part by
returning their own bills for cancellation, to an
amount equal to the face of the bonds with
drawn.


would further suggest for your considera-