Year: 1875

WASHINGTON, Jan. 14.-The president sem
to the senate to-day the following message
accompanying his approval Of the new finance
bill:


| To the Senate of the United States


Senate bill No. 1O44, to provide for the re-
sumption of specie payments, is before me
| and this day receives my signature of approval


I venture upon this unusual method of con
! yeying notice of my approval to the house II
which the measure originated, because OF iti
| great importance to the country at large, II
order to suggest further legislation, which
| seems to me essential to make this law effect
ual. It is a subject Of cOngTatulation that 6
measure has become a law which fixes the date
| when specie resumption shall commence, and
| implies an obligation on the part Of congress
If in its power, to give such legislation as may
prove necessary to redeem this promise, To
this end I respectfully call your attention to q


few suggestions:


l The necessity for increased revenue to
| carry ont the obligation Of adding to the sink
ing fund annually one per cent The interest
on the public debt amounts now to S34, OOO, 600


per annum, and to carry out the promises Of


this measure to redeem under certain contin-


eencies $50, 600, 900 Of the present legal-ten-
ders, and without contracting the national
currency now iD circulation. How to increase
the surplus revenue IS for congress to devise.
But will venture to suggest that the duty on
tea and coffee might be restored, without per-
manently enhancing the cost to consumers.
and that ten per cent reduction of the tariff
on articles specified IN the law Of June, 1872,
be repealed The supply of tea and conee
already on hand in the United States, would,
in all probability be advanced in price by
adopting this measure. hut it is known that
the adoption of free entry to these articles Of
necessity did not cheaper materially, or en-
hance the profits OF the country producing
them, or Of middlemen Of those countries who
have the exclusive trade in them


3 The first section Of the bill now under
consideration, provides that the fractional
currency shall be redeemed in silver coin as
rapidly as practicable There is no provision
preventing the fiuctuation in the value Of
paper currency. or the gold premium advanc-
ing over ten per cent. above the currency in
use. It is probable. almost certain, that silver
would be bought up for expectation fast
it was put out, until change would become so
scarce as to make the premium on it equal to
the premium on gold or sufficiently high to
make it no longer profitable to buy for export,
therebyscausing a direct loss to the community
at large, and great embarrassment to trade
As the present law commands final resumption
on the fret Of January, 1879 and as the gold re-
ceipts by the treasury are larger than the gold
payments, and the currency receipts than cur
rency paymeDts, thereby making monthly sales
of gold necessary to meet current currency eX-
penses, it occurs to me that these difficulties
might be remedied by authorizing the secre-
tary of the treasury to redeem legal tender
notes whenever presented IN sums Of not less
than 800 and multiples thereof, at the pre-
MUM for gold of ten per cent less interest,
at the rate OF 212 per cent. per aunum- from
the 1st OF January. 1875, to the date OF put
ting this law into operation, and diminishing
this premium at the same rate until final re-
suit; changing the rate of premium demanded
from time to time, as the interest amounts to
One-quarter of one per cent. I suggest this
rate Of interest because It would bring cur
rency at par with gold at the date fixed by the
law for the final resumption. ] suggest ten
per cent. as the premium at the beginning,
because I believe this rate would secure the
rptanf1on of silver the enTTmtTv for ahanun.
The provisions OF the third section Of the act
Will prevent combinations being made to eX-
haust the treasury Of coin. With such law.
it is pTesumable that no gold would be called
purposes. When large amounts Of coin
should be drawn from the treasury, CORES
pondingly large amounts Of currency would
be withdrawn from circulation. thus causing
sufficient stringency in currency to stop the
outflow Of com. and the advantages Ct cur
rency, Of fixed known value. would also be
reached. In my opinion. by the enactment Of
such a law, business and the industries would
revive, and the beginning OF prosperity
on a firm basis, would be reached. Other
means Of increasing the TeVei ne, than those
suggested should probably be devised, and
alsO other legislation, in fact, to carry ont the


first section Of the act. Another mint be-
comes a necessity. With the present facilities
for coinage it would take a period beyond
that fixed by law for final specie resumption
to coin silver necessary to transact the busl-
2
furnsces for extracting silver and gold from


ores brought from the mountain territories


into Chicago. st. Louis and Omaha, three IN


the former city. and as much Of the change
required viii be wanted IN the Mississippi


Valley States, and as metals to be coined


come from west of those states, and as 1


understood the charges for transportation


of bullion from either OF the cities named


to the mint at Philadelphia5 OF New YORK


city, amount TO four dollars for each one


thousand dollars worth, with an equal eX-


pense for transportation back, It would seem


a fair argument in favor Of adopting one or
more Of these cities a place or places Ior


the establishment Of new coinage faclhtes- 1


have ventured upon this subject with great


djfidence. because il Is uDususl 70 approve a


measure. as I do this, il no further Legislation


Is sttainable at this time and to announce the


fact by message But I do so because feel
that it II a subject Of such vital Importance 70


the whole country, that il should receive the


attention Of and be di-cussed by congress
and the people, through the press and IN every


wav to the end that the best and most satisfac-


tory course may be reacaed, Of executing what
I deem most beneficial legislation on a most


Vital question, to the interests and prosperity


Of the nation Z. S. GRAST,
Executive Mansion, Jan. Il, 1875.