Year: 1873




bonds outstanding on the fourth of
March, 1869, all of which took the place
of legal tenders in the bank reserves TO
the extent of sixty-three millions of dol
lars During the same period there has
been a much lager comparative eontrac-
ton of currency; the population of the
country has largely increased; more than
twenty five thousand. miles of railroad
have been built, requiring the active use
of capital to operate them; millions of
acres of land have been opened to culti-
walton; requiring capital to move the
products; manufactures have multiplied
beyond all precedent in the same period
of time, requiring capital weekly for the
payment of wages and for the purchase
of material; and probably the largest of
all comparative contraction arises from
the organizing of free labor in the South.
Now every laborer there receives wages,
and for want of savings banks the great
er part of snch wages is carried in the
pocket or boarded until required for use.
These suggestions are thrown out for
your consideration, without any recon-
mendation that they shall be adopted
literally, but hoping that the best meth
cd may be arrived at to secure such an
elasticity of the currency as viii keep
employed all the industries of the coun-
try, and prevent such an imitation as will
put off indefinitely the resumption of
specie payments, an object so devoutly
to be wished for by all, and by none
more than the classes of pc ople most di-
rectly interested-thosew who earn their
bread by the sweat of their brow. The
decisions of Congress on this subject will
have the hearty support of the Execu-
tive.


REVIVAL OF THE AMERICAN MERCHANT


MARINE.


In previous messages have called at
tention to the decline in American ship
building, and recommended such legis-
lation as would secure to US our proper
tion of the carrying trade. Stimulated
by high rates and abundance of freight,
the progress for the last year in ship
building has been very satisfactory
There has been an increase of about
three per cent, in the amount transported
in American vessels over the amount of
last year. With the reduction in the
cost of material which has taken place,
it may reasonably be hoped that this
may be maintained, and even increased.
As We pay about eighty million dollars
per annum to foreign vessels for the
transportation of our surplus products to
market, thus increasing the balance of
trade against us to this amount, the sub
ject is one worthy of your serious con-
sideration.


CHEAP TRANSPORTATION


is subject that has attracted the atten-
tion of producers for the past few years,
and has contributed to, if it has not been
the direct cause, of the recent panic and
stringency. AS Congress, at its last ses-
sion, appointed a special committee to
investigate this whole subject during the
vacation, and report at this session, 1
have nothing to recommend until their
report il read There is one work, how
ever, of a national character, in which
the greater portion of the East and the
West, the North and the South, are
euqally interested, to which will invite
| Il
has a canal connecting Lake Erie with
tide water on the Hudson river. The
State of Illinois has similar work, con-
Meeting Lake Michigan with Manageable
water on the Illinois river, thus making
water communication inland between
the East and West and South. These
great artificial water courses are the
property of the States through which
lhey pass, and pay toll to those States.
| Would it not be wise craftsmanship to
pledge these States that if they will open
these canals for the passage of large YES
sells, the general government will look
after, and will keep in navable condi-
ton the great public highways with
which they connect, to-wit: The over
slaugh on the Hudson, the St. Clair
Flats, and the Illinois and Mississippi
rivers. This would he national work
one of great value to the producers oi
the West and South, in giving them
cheap transportation for their produce
to the seaboard and a market, and to the
consumers in the East in giving them
cheaper food, particularly of those ar.
ticles of food which do not find foreign
market, and the prices of which, there


fore, are not regulated by foreign de


mands. The advantages of such a worl
are too obvious for argument. | sub


NIT the subject to you, therefore, withou


further comment. In attempting to re


gain our lost commerce and carrying


trade, have heretofore called attention


to the States South of us, offering fielC
where much might be accomplished t,
further this object. 1 suggest that
small appropriation be made, accom-
panied with authority for Secretary O
the Navy to get out a naval vessel TO as
cend the Amazon river to the mouth O
the Madeira, thence to explore that ri
yer and its tributaries into Bolivia, ant
to report to Congress at its next session
or as soon as practicable, the accessible
: ty of the country by, water, its resource
: and the population so reached. Sue
an exploration will cost but little, an
= can do no harm, and may result in es
, tablishing trade of value to both ma


tions.


, In further connection with the Treas


ury Department would recommend
: revision and codifcation of the tari
f laws, and the opening of more mints fc
). coming money, with authority to col
e for such nations as may apply.


WAR DEPARTMENT.


: The attention of Congress is invite
s to the recommendation contained in th
r report of the Secretary of War, herewit
g accompanying. The apparent great CO.