Year: 1873

times when the revenues OF the country
would abundantly justify it.


THE REVENUES FALLEN OFF.


The revenues have materially fallen of
for the last five months of the present
fiscal year from what they were expected
to produce, owing to the general panic
now prevailing, which commenced about
the middle of September last. The full
effect of this disaster, if it should not
prove to be blessing in disguise, is yet
to be demonstrated. In either event it
is your duty to heed the lesson, and pro-
vide by wise and well considered legisla-
ton, as far as it lies in your power,
against its recurrence, and to take advan-
tage of all benefits that may have &C
crued.


THE PRESENT CURRENCY THE BEST.


The experience of the present panic has
proven that the currency of the country,
based, as it is, upon the credit of the
country, is to be the best that has ever
been devised Usually, in times of such
trials, currency has become worthless, or
so much deprecated in value as to initiate
the values of all the necessaries of life, as
compared with the currency. Everyone
holding it has been anxious to dispose of
it on any terms. Now we witness the
reverse; holders of currency hoard it as
they did gold in former experiences of a
like nature.


BANKS.


In view of the great actual contraction
that has taken place in the currency,
and the comparative contraction con-
stantly going on, due to the increase of
speculation. increase of manufactures,
and all the industries, do not believe
that there is too much of it now for the
dullest period of the year. Indeed, if
clearing houses should be established,
thus forcing redemption, is question for
consideration whether banking should
not be free, retaining all the safeguards
now required to secure bill holders.


In any modification of the present laws
regulating national banks, and a further
step toward preparing for the resumption
of specie payment, l invite your attention
to the consideration of the propriety of
exacting from them the retention, as a
part of their reserve, either the whole or
part of the gold interest accruing upon
the bonds pledged as security for their
issue. have not reflected enough on
the bearing this might have in producing
a scarcity of coin with which to pay
duties on imports to give it my positive
recommendation, but your attention is
invited to the subject. During the last
four years the currency has been con-
tracted directly by the withdrawal of 3
per cent. certificates, compound interest
notes, and 7-30 bonds outstanding on
the 4th of March, 1869, all of which took
the place of legal tenders in the bank
reserves to the extent of sixty-three mil
lions of dollars. During the same period
there has been a much larger compare
tive contraction of the currency. The
population of the country has largely in
creased More than $4,000 miles of rail
road have been built, requiring the active
use of capital to operate them. Millions
of acres of land have been opened to cul-
tivation, requiring capital to move the
products. Manufactures have multi
piled 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 the comparative contrac-
ton arising from the organizing of free
labor in the South. Now every laborer
there receives his wages, and for want of
savings banks the greater part of such
wages is carried in the pocket or boarded
till 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
method may be arrived at to secure such
an elasticity of the currency as will 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 devoutly to
be wished for by all, and by none more
earnestly than the class of people most
directly interested-those who earn their
L. Of hni a
decisions of Congress on. this question
will have the hearty support of the
Executive.


AMERICAN SHIPBUILDING.


In previous messages I have called at
tention to the decline in American ship
building, and recommended such legisla-
ton as would secure to US our proportion
of the carrying trade, stimulated by high
rates and the abundance of freight. The
progress for the last year in shipbuilding g
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 reduced cost of material which
has taken place, it may reasonably be
hoped that this charge will be maintain
ed, and even increased. However, as we
pay about $80,000,0 900 per annum to for
eign vessels for the transportation of our
surplus products to market thus in
creased, the balance of trade is against
us to this amount The subject is one
worthy of your serious consideration.


CHEAP TRANSPORTATION
is subject that has attracted the atten-
ton of both producers and consumers
for the past few years, and has contribut-
ed to, if it has not been the direct cause
of, the recent panic and stringency. As
Congress at its last session appointed a
special committee to investigate this
whole subject during the vacation, and
report at this session, have nothing to
recommend until their report is ready.
There is one work, however, of a nation
al character in which the greater portion
of the East and West, the North and the
South, are equally interested, to which
| will invite your attention.


The State of New York has canal
connecting Lake Erie with tidewater on
the Hudson River The State of Illinois
has similar canal connecting Lake
Michigan with navigable water on the
Illinois River, thus making water COM
munication inland between the East and
the West and South. These great arti-
fetal water courses are the property of
the States through which they 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 vessels, the gov
ernment will look after and keep in nav
igable condition the great public high
ways in which they connect-to wit: the
overslough on the Hudson, the st. Clair
Flats, and the Illinois and Mississippi
rivers. This would be a national work,
ono Of great value tn the prOduCars of
the West and South, in giving them
cheap transportation for their produce
to the seaboard, and q market to the
CON sllnn ers in the East in niuinm them q