Year: 1876




Treasury ................$2 cog, ,339 ,344 80
| 1t Will be observed that the surplus rev.
enues exclusive of the provision for the
| sinking fund, as shown in the statement OF
the receipts and expenditures for the fiscal
year, were $29 022, ,241.83, or 1927, 1880 less
than the amount of the reduction of the
| debt as shown by the monthly statement OF
the same.


The difference between these two state
ments arises from the difference of dates at
which they were made up, as will be seen by
a comparison of them as regards the cash IN
the treasury at the commencement and close
of the fiscal year, and of the item of Inter
est due and unpaid and accrued interest to
date" which, in the monthly debt statement
is treated as a liability of the government,
precisely as is the principal of the debt, but
which is not so considered in the statement
of receipts and expenditures


REsUMING SPECIE PAYMENT.


The secretary affirms the obligations of the
government to resume specie payments jan
uary l, 1879, and redeem its currency obli-
cations. He says, looking to that result:


q AS a further provision deemed essential
to the purpose of resumption, 1t is recon-
mended that, in addition to the authority of
the secretary of the treasury already con-
ferred, to provide for redemption of legal
tender notes on and after the day provided
for redemption, by the accumulation of an
adequate amount of gold to meet the volume
of $500, 100000 of legal tender notes, which
will then be outstanding, Dy the sale of the
United States bonds, authority be given him
from time to time, as he may deem eXpedient
and the state of finances admit, to fund these
notes into bond bearing rate Of interest
not more than ~ per cent, with not less
than thirty years to run, with such limita
tiOns as to the amount to be SO funded in
any given period as congress, in its discre-
ton, may determine.


"a sudden accumulation Of gold in
amounts sufficient to meet so large a demand
as that contemplated in January 1879, is
deemed impractieable; while to accumulate
in advance of that time would be attended
with necessary loss of interest, would be
likely to disturb money of exchange, and
embarrass the funding of our national secu-
rites: The present time is regarded as OPP
perfume for the gradual withdrawal of these
notes. 1t is believed they would not be
greatly missed from the circulating medium,
as their place will be readily supplied by the
issue of national bank notes under this
act"


GOLD AND SILVER COIN,


The secretary argues that although the
silver dollar was an unlimited legal tender
prior to April 1, 1873, "gold has for many
years past been the money OF payment in this
country" OF the proposition to remonetize
the silver dollar, he saws:


"Not long after the close of the civil war,
which gave rise 20 these obligations, doubts
arose as to the kind of money in which these
securities were payable, and which led to
the passage of the act of 1869 entitled An
act u strengthen the public credit and il
was intended to dispell all hesitation or
doubt as to the purpose of the government
upon the question, and by which the faith of
the United States was pledged 70 the pay
uaent in coin of all its obligations. except
those expressly otherwise provided for. This
legislative action was in harmony with thst
of the executive administration.


"What, then, was intended and under
stood to be intended by this pledge of the
government? Was it that the public securi
ties were to paid in gold cola, or in silver, or
might he in either?


at will not be questioned by any one con.
versant with the question at that time that
the popular impression, to not say general
conviction, was that the pledge was for pay
ment in gold. This belief may have obtained
fr IN the fact that the interest on this class
of obligations, payable in coin, had uniform
ly been made, that the custom receipts had
been set apart to this end, and that these