Year: 1873

part by returning their own bills for
circulation to an amount equal to the
face of the bonds withdrawn.
would further suggest for your con
sideration the propriety Of authoriz-
ing National Banks to diminish this
outstanding issue at pleasure hy re-
turning for cancellation their own
bills and withdrawing SO many
United States bonds as are pledged
| for the bills returned. In view Of
the great actual contraction which
has taken place in the currency, and
the comparative contraction constant
ly going on, due to the increase Of
manufactures and all the Industries,
l do not believe that there is too
much of it now for the dullest period
of the year. 1t is question for CON
sideration whether banking should
not be in the main free, retaining all
the safeguards now required n to ses
cure bill holders in any modification
of the present laws regulating Nation
al Banks. 1je iaede o natailaI q
| And, as further step toward the.
resumption Of specie payment, / in
vite your attention to consideration
Of the propriety of exacting from. the
retention as part of their reserve
either whole or part Of tile gold in
terest accruing upon 1.-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 posi-
tive recommendation, but your atten-
ton is invited to the subject. Dur
ing the last four years, the currency
has been contracted decidedly. The
withdrawal of the three per cent.
certificates compound interest notes,
and seven-thirty bonds outstanding
on the 4th of March, 1869, all of
which took the place of legal tenders
in the bank reserves, amounts to
$63, 100000 During the same peri
cd there has been much larger
comparative contraction Of currency
the population of the country is
largely increased; more than 25 900
miles of railroad have been built,
requiring the active use of capital to
operate them; millions of acres of
land have been opened to cultivation
requiring capital to remove the
products; manufactures have multi
piled beyond all precedent in the
same period of time, requiring
large amount of capital weekly for
the payment of wages and for pur-
chase Of material, and probably the
largest of all the comparative con-
traction arising from the organization
of free labor in the Southern States.
Now, every laborer there receives his
wages, and for want Of savings banks
the greater part of such wages is car
ried in the pocket or boarded till re-
quired for use. These suggestions
are now thrown out foryour consider
alton, without any recommendation
that they shall be adopted literally,
but hoping that the best method may
be arrived at, so as to secure such an
elasticity of currency as will keep
employed all the industries of the
country and prevent such initiation as
will put off indefinitely the resump-
ton of specie payment--an object
deyoutly to be wished for by all, and
by none more earnestly than the
class of people who earn their bread
by the sweat of their brow. With the
renewed cost of material which has
taken place, it may reasonably be
hoped that this change will be main
tanned, and even increased. How
ever, as we pay about $50, 900, 900
per annum to foreign vessels for the
transportation of our surplus pro-
ducts to o market, this increases the
balance Of trade against US to this
amount. The subject is one worthy
of your consideration.


CHEAP TRANSCRIPTION


Is o subject that has attracted the at
tention Of both producers and CON
sumers for the past few years, and
laws Of Congress on this subject will
have the hearty support of the Execu-
tive. In previous messages l have
called attention to the decline in
American ship building, and COM
mend such legislation as would So
cure to us our portion Of the carrying
trade. Stimulated by higher rates
and abundance Of freight, the pro-
gress for the last year in ship build
ing has been very satisfactory. Con-
gress, at its last session, appointed o
special committee TO investigate this
whole subject during the vacation,
and report at this session. / have
nothing to recommend until their
report is ready.


| EXPEDITION TO THE AMAZON.


l suggest that small appropria-
| ton be made, accompanied with
authority for the secretary Of the
Navy to fit out naval vessel to as
cend the Amazon River TO the mouth
of the MADEIRA; thence to explore
the river and its tributaries into
Bolivia; to report to Congress at its
next session, or as soon as ptacti-
cable, the accessibility Of the country
by water, its resources and popula-
ton.


TARIFF LAWS.


In further connection with the
Treaty Department, / would recon-
mend revision and codifcation of
tariff laws and the opening Of more
Mints for coming money, with au-
thority to coin for such nations as
may apply.


THE WAR DEPARTMENT.


The attention Of Congress is invited
to the recommendations in the report
Of the Secretary Of War. The ap-
parent great cost Of supporting the
Academy is fully explained in the
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