Year: 1876




the ST. Louis platform, with amend
ments universally accepted as final
settlement of controversies which en-
gendered civil war, but in aid of re-
suit beneficial to the moral influence of
good citizens as we'll as every government
authority. They ought to be taught
not alone to maintain their just equality
before law, but likewise to establish Il
cordial fraternity and good will among
who are now united in the one destiny
of a common self government. If the
duty shall be assigned to me, should
not fail to exercise the powers with
which the laws and constitution of our
country clothe its Chief Magistrate and
protect all its citizens, whatever their
former condition in any political and
personal rights.


Reform is necessary, declares the St.
Louis Convention, to establish 4 sound
currency, to restore public credit and
maintain the national honor; and it
goes on to demand ;udicious system
of preparation by public economies, by
official retrencIment, and by wise tinan-
ces, which shall enable the nation soon
to assure the whole world of its perfect
readiness to meet any of its promises
at the call of the creditor entitled to
payment. The object demanded by the
convention is the resumption of the
specie payments on legal tender notes
of the United States that would not
only restore public credit and maintain
the national honor, but would establish
sound currency for the people. The
methods by which this object is to be
pursued and means by which this object
is to be attained are disclosed by what
the convention demands for the future
and what it denounces in the past. The
resumption of specie payments by the
Government of the United States on It's
legal tender notes would establish specie
payments by all banks on all their
notes. The official statement made on
the 18th of May shows the amount of
bank notes to be $50, 900, ,O00, less 81,
600, 600 held by themselves. Against
these $28, 900. 000 of notes, the banks
held $141 900, ,0J0 legal tender notes or
a little more than five per cent. of their
amount, but they also held on deposit in
the Federal Treasury as security fer
these notes, bonds of the United States,
with which they can be changed from
currency into investments. In this lies
the only danger to be guarded against in
the adoption 9f general measures in-
tended to remove clearly ascertained
surplus. that is withdrawn from any
which are not permanent excess be-
yond the wantsof business. Even more
mischief would result from the measures
which affect the public imagination.
With the fear OF an apprehended scarcity
in community where credit is so much
used to fluctuations of values. the vicis-
situdes in business are largely caused by
the temporary beliefs of men, even be-
fore their beliefs can conform to ascer-
tanned realities. Amendment is neces-
sary, currency at a given time cannot
be determined arbitrarily, and should be
assumed ON conjecture that its amount
is subject to both permanent and tenn
porary changes. An enlargement of it,
which seems to be durable, happened
at the beginning of the civil war by a
substituted use of currency in place of
! individual credits; it varies with certain
states of business; it fuctuates with
regularity at different seasons; for in
stance, when buyers of grain and other
agricultural products begin their opera
tions they usually need to borrow capi-
tai OF circulating credits by which to
make purchases and want these funds
in currency capable of being distributed
in small sums among numerous sellers;
an additional need of currency at such
times as five or more per cent. of the
whole volume, and if surplus beyond
what is required for ordinary use does
not happen to have been on hand at the
money centres, scarcity of currency
ensues and also stringency in the loan
market. It was in reference to such
experiences that in the discussion oi
this subject in my annual message to
the New York Legislature in January
1875, a suggestion was made that the
Federal Government was bound t. re-
deem every portion of its issues, which
the public does not wish to use. Hav-
ing assumed to monopolize the supply
of currency and enacted exclusions
against everybody else, it is bound to
furnish all which the wants of business
require; the system should passively
allow the volume of circulating credits
to ebb aud flow according to everJ
changing want of business; it should
initiate as closely as possible the natural
laws of trade which it has superseded
by artificial contrivancesl In similar
discussion in my message of January
1876, it was said that the resumption
should be effected by such measures as
would keep the aggregate amount o1
currency self-adjusting during all pro
cess, without creating at any time al
artificial scarcity, and without exciting
public Imagination with alarms whict
, impair confidence, and contract thu
whole large machinery of credit and dis
turb the natural operations of business
Public economy, official ret-enchmen'
and wise finance are means which th'
, st. Louis Convention indicates as pro
vision for the resources and redemption
! The best resource is reduction Of ex
, penses of the Government below its in
: come, for tnat imposes no new chang
on people. If however improved provi
dence and waste, which have conducted
it to period of falling revenue, oblig
ma r., sunple,nant tho raenltS of ocono