Newspaper Page Text
VOLUME I.
TIIE INDEPENDENT.
SATURDAY, DECENKER 13,1873.
J. C. GALLAHER. Editor and Proprietor.
PultlUhcil M’n'hly Ml s‘4 (HI per Annum
in AdTsiicr.
Klnglr ( opic 3 renU.
tm OLD (OAT OF LUA\.
BY BLONIHXE.
It lira there alore; it in runty an<l faded.
With u patch on the elbow, a hoi© in the Hide;
But w© think of Mi© brave boy who wore it and
over
Look on it with pleasure and touch it with
pride.
A history eiing* to it: over and over.
We wh- a proud youth harried off to the fray,
With liis form like an oak, aad bin eye like the
How gallant li rode intlo ranks of “the Gray!*’
It i* rough, it is worn, it is tattered in places,
lint 1 love it the more tor the story it bears:
A story of courage iu struggle with sorrows.
And a heart that bore bravely its burdens of
cares.
It is ragged and rusty, but ah! it was shining
In the silkiest sheen when he wore it away,
A:l his smile was as bright as the glad summer
morning,
When he sprang to his place iu the ranks of
“the Gray.
ThereV a rip iu the sleeve, and the collar is tar
nished,
The buttons all gone with their glitter ami
, gold;
Tin a thing of the past, and we reverently lay it
Away with the treasures and relies of old:
As the gifts of a love, solemn, sweet and unspo
ken.
Are chcrud e l as leaves from a long vanish
ed day,
We will keep the old jacket for sake of the loved
one
Who rude in the van in the ranks of ‘•fcbeGray.’*
Shot through with a bullet—right here in rhe
shoulder,
And down there the pocket is splintered and
soiled,
Ah! more -see, the lining is stained and discol
ored!
Yes—blood-drops the texture have stiffened
and spoiled.
It came when he ride at the head of the column,
(.'barging down in the battle one deadliest day,
When squadrons of foemea were broken asunder.
And Victory rod© with the ranks of “the Gray.'
Its mom’rvis sweetness and sorrow r >mmingled.
To n.e ft is pr clous m o preci.ms thailg 1 ;
Iu the rent ami the sm>t-luics a volume is, wm
tec,
In the stains on the lining is agonv told.
That was ten years ago, when, in life's sunny
morning,
He rode with his comrades down into the fray,
And the old coat lie wore, and the good sword he
wielded,
Were ail that came back from the ranks of “the !
<3ray.”
Audit lies there alone; I will reverence it ever,
The patch in the elbow, the hoi© >* the side,
For a LAiliinfer heart never breathed than the j
loved one.
Who wore it in honor and soldi©:y pride.
Let me brush off the dust from its tatters and
tarnish,
Let me fold it up clnsolv and lay it away
It is all that is left of the Wed and the I<M one
Who fought for the Bight iu the ranks of “the ,
Gray.”
VIKSS AC e < >1"
PRESIDENT GRANT.
o
To Ho' St'not'' <m<l House of Represent/dives:
The year that has passed since the sub
mission of my last message to Congress
has, especially during the latter part of it,
been an eventful one to the country. In
the midst of great national prosperity, a
financial crisis has occurred that has
brought low fortunes of gigantic propor
tions, political partisanship has almost
ceased to exist, especially in the agricul
tural regions, and finally the capture upon
the high seas of a vessel bearing our Hug
has, for a time, threatened the most serious
consequences, and has agitated tlie public
mind from one end of the country to the
i>ther. But this happily now is in the
course of sii isfus'ory adjustment, lionoi
able to both nations concerned.
roUEIUN relations.
The relations of the United States, how -
ever. with most of the other powers, con
tinue friendly and cordial. With France,
Germany, Russia, Italy, and the minor i
European powers, with Brazil anil most!
of the South American Republics, and,
with Japan, nothing has occurred during
the year to demand special notice. The
correspondence between the Department
of State and the various diplomatic repre
sentatives in or from those countries is ■
transmitted herewith. In executing the
will of Congress, as expressed in its joint
resolution of the 14th of February Dost,
and in accordance with the provisions of
the resolutions a number of “practical
artizans,” of “scientific men,” and of;
“honorary Commissioners” were author
ized to attend the Exposition at Vienna as
Commissioners on the part of the United
States. It is believed we have obtained ’
the object which Congress had in view
when it passed the joint resolution “in
order to enable the people of the United
States to participate in the advantages of
the International Exposition of the pro
ducts of agriculture, manufactures, and
the tine arts, to be held at Vienna. ” I
take pleasure in adding that the American
exhibitors have received a gratifying num
ber of diplomas and of medals. During
the Exposition a conference was held at
Vienna for the purpose of consultation on
the systems prevailing in different coun
tries for the protection of inventions. I
authorized a representative from the Patent
Office to be present at Vienna at the time
when this conference was to take place, in j
order to aid as far as he might in securing
any possible additional protection to
American inventors in Europe. The re
port of this agent will be laid before Con
gress. It is my pleasant duty to announce
to Congress that the Emperor of China on
attaining his majority received the dip
eniatic representatives of the Western i
powers in person. An account of these;
ceremonies, and of the interesting discus
sions which preceded them, will be found !
in tin' documents transmitted herewith.
The accompanying papers show that some
advance, although slight, has been made
I during the past year towards the sup
pression of the infamous Chinese Coolie
trade. I recommend Congress to inquire
whether additional legislation be not
needed on the subject.
THU GENEVA AWAIUL
The money Bwardod to the United
States by tho tribunal of arbitration at
Geneva, was paid by Her Majesty’s Gov
ernment a few days iu advance of the time
when it would have become payable ac
cording to the terms of the treaty. In
compliance with the provisions of the act
of March 3, 1803, it was at once paid into
the Treasury and used to redeem, so far as
it might, the public debt of the United
States. The amount redeemed was in
vested in five per cent, registered bonds of
the United States for $15,500,000, which
is now held by the Secretary of State,
subject to the future disposition of Con
gress. I renew my recommendation made
at the opening of the last session of Con
gress, that a Commission bo created for
the purpose of auditing and determining
the amount of the several “direct losses
growing out of the destruction of the ves
sels and their cargoes” by the Alabama,
the Florida and the Shenandoah, after
leaving Melbourne, for which the sufferers
have received no equivalent or compen
sation, and of ascertaining the names of
the persons thus entitled to receive com
pensation for the same, making the com
putations upon the basis indicated by the
tribunal of arbitration at Geneva, and that
payment of such losses be authorised to an
extent not to exceed the awards of the
tribunal at Geneva.
BOUNDARY TUNE!'.
By an act approved on the 14th day of
February last, Congress made provision
for completing jointly with an officer or
commissioner to be named by her Brit
tnnic Majesty, the determination of so
much of the boundary line between the
territory of the United States and the
possessions of Great Britain as was left
uncompleted by the Commissioners ap
pointed under the net of Congress of
August 11, 1.850. Under the provisions of
this act, the northwest water boundary of
the United States has been determined
a.id marked iu accordance with the award
of the Emperor of Germany. A protocol
and a copy of the map upon which the
line was thus marked are contained in the
papers submitted herewith. I also trims
mit a copy of the report of the Commis
sioner for marking the northern boundary
between the United States and the British
possessions west of the Lake of the Woods,
of the operations of the Commission dur
ing the present season. Surveys have
been made to a point four hundred and
ninety-seven miles west of the Lake of the
Woods, leaving about three hundred and
fl v miles to be surveyed, the field work of
which can be completed during the next
season.
MIXED COMMISSION.
The Mixed Conimis! ion organized un
der the provisions of the treaty of Wash
ington for settling and determining the
claims of citizens of either power against
the other arising out of acts committed
against their persons or property during
the period between April 13, 1861, and
April i>, 1865. made its final award on tin
2’t'i day of Reptemlx r last. It was award
ed that the Government ,f (lie United
States should pay to tl e Government of Her
Brittanie Majesty within twelve months
from the date of the award, the sum of
81,929,879 in gold. The Commission dis
allowed, or dismissed, all other claims of
British subject!against the United States.
Tlie amount of tho claims presented by
the British Government, but disallowed or
.dismissed, is understood to be about 89.”,-
(kXI,OOO. It also disallowed all the claims
of citizens of the United States against
Great Britain, which were referred to it.
I recommend the early passage of an act
appropriating the amount necessary to pay
this award against the United States.
I have caused to bo communicated to the
Government of th King of Italy tlie thanks
of this Government for the eminent servi
ces rendered by Count Corte ns the third
commissioner on this commission, with
dignity, learning and impartiality. He dis
charge! duties requiring great labor anil 1
constant patience to the satisfaction, I be
lieve, of both governments. I recommend j
legislation to create a special Court to con
sist of three Judges who shall be mpow
ered to hear and determine all claims of :
aliens i pon the United States arising out
of acts committed against their persons nr
property during the insurrection. The re
cent reference under the treaty of Washing
ton was confined to claims of British sub
jects arising during the period named in
the treaty, but it is understood that there :
are other British claims of similar nature
arising after the 9th of April, 1865, and it
is known that other claims of a like nature
are ad van cod by citizens or subjects of other
owers. It is desirable to have these;
claims examined and disposed of.
Official information being received from ■
the Dutch Government of a state of war be
tween the Kings of the Netherlands arid
the Sultan of Acheen, the officers of the
United States who were near the seat of
war were instructed to observe an impar- j
tial neutrality. It is beleived that they ;
have done so.
The Joint Commission under the con- ,
vention with Mexico in 18C8 having again ]
been legally prolonged lias resumed its bus
uoss. which, it is hoped, may be brought 1
QUITMAN, GA., SATURDAY, DECEMBER 13, 187-T
I to an early conclusion. The distinguished
representative of Her Brittanie Majesty at
Washington has kindly consented, with the
i approval of his government, to assume the
; arduous ninl responsible duties of umpire
in thiseiunmission, and to lend the weight
of his character anil name to such deois
j ions as may not receive the acquiescence of
l both the arbitrators appointed by tlie res
pective governments The t lommissioners
i appointed, pursuant to the authority of
Congress, to examine into the nature and
extent of the forays by trespassers from
j that country upon the lands of Texas,
have made a report, whir’, ill he submit
ted for your consideration.
| The Yeuezeula Government has been
apprised of tlie sense of Congress in regard
; to the awards of the Joint Commission un
der tlie Convention of the 25th of April,
j 1866, us expressed in the Act of the 25tli
of February last. It- is apprehended that
that government does not realize the char
acter of its obligations under that Conven
tion. As there is reason to believe, how
ever, that its hesitancy in recognizing
them springs, in part at least, from tlie
real difficulty in discharging them, in con
nection with its obligation to other gov
ernments, the expediency of further for
bearance on our part is believed to be
worthy of your consideration.
The Ottoman Government, and that of
Egypt, have lately shown a disposition to
relieve foreign consuls of the judicial pow
ers which heretofore they have exercised
in tho Turkish dominions, by organizing
other tribunals. As Congress, however,
lias by law provided for the discharge of
the judical functions by consuls of the
United States in that quarter, under the '
treaty of K'-'f), I have not felt at liberty
formally to accept tho proposed change
without the assent of Congress, whose de
cisions upon the subject at as early a pe
riod as may be convenient, is earnestly re
quested. I transmit herewith for the con
sideration and determination of Congress
an application of the Republic of Santo
Domingo to t his government to exercise a
protectorate over the Republic.
Since the adjournment of Congress, the
following treaties with foreign powers have
proclaimed: A naturalization convention
with Deli mark; a convention with Mexico
for renewing the Claims Commission; a
convention of friendship, commerce and !
extradition with the Orange Free State,
nr.il a naturalization convention with J
Equndor,
I renew the recommendation made by'
my message of December, 1870 that Con
gress authorize the Postmaster General to ■
issue all commissions to officials appointed
through liis department.
CITIZENSHIP.
I invite the earnest attention of Con
gress to the existing laws of the United
States, respecting expatriation and tile j
election of nationality by individuals. !
Many citizens of the United States reside
permanently abroad with families under
the provisions of the not approved Feb
ruary lfitft, 1855. The children of such j
persons are to be deemed arid taken to be
citizens of the United States, but the rights i
of citizenship are not to di i end to persons
whose fathers never resided in the. United
States. It thus happens that persons who
have never resided within the United
Statics have be< n enabled to put forward n
pretention to the protection of the United !
States against the claim to military service
of the government, under whose protection
they were horn and have been reared. In ,
some eases, even naturalized citizens ot
the United States have i anted to the
land of their birth with intent in remain
there, and their children, the issue of a !
marriage contracted there after their re
turn, and who have never been in the Uni- j
ed States, have laid claim to our protec- j
tion when the lapse of many year-, had
imposed upon them the duty of military
service to the only government which had
ever known them personally. Until the j
year 1868 it was left embarrassed by con- j
dieting opinions of courts and of jurists to ;
determine how far the doctrine of perpet
ual allegiance, derived from our former col
onial relations with Great Britain was
applicable to American citizens. Congress
then wisely swept these doubts away by
enacting that “any declarations, instruc
tion, opinion, order< r decision of any offi
cer of this government which denies,
restricts, impairs or questions the right of
expatriation is inconsistent with the fun
damental principles of this government,”
but Congress did not indicate in that
statute, nor has it since done so, what acts
are to be deemed to work expatriation.
For my own guidance in determining such
questions, T ; quir '. under the provisions
of the Constitution, the opinion in writing
of the principal officer in each of (he Execu
tive Departments upon certain questions re
lating to this subject. I’ho result satisfies
me that further legislation has become
necessary. I therefore commend the sub
ject to the careful considera. a of Con
gress, and I transmit herewith copies of
the several opinions of the principal offi
cers of the Executive Departments togeth
er with other eorrespondev e nrnl perti
nent inform. ..ion on the same subject.
The United States, who led the way in
the overthrow of the feudal doctrine of
perpetual allegiance, are among the last to
indicate how then' own citizens may elect
another nationality. The papers sub
mitted herewith indicate what is necessary
to place us on a par with other leading
nations in liberality of legislation on this
international question. We have already
in our treaties assented to the principles
1 which would need to bo embodied in laws
, intended to accomplish such results. Wo
have agreed that citizens of the United
| States may cease to be citizens, and limy
i voluntarily render allegiance to other
, powers. We have agreed that residence
j in a foreign land without intent to return,
. shall of itself work expatriation. We have
| agreed in some instance! upon the length
of time necessary for such continued resi
dence to work a presumption of such in
tent. 1 invito Congress now to mark out
and define when and how expatriation can
lio accomplished, to regulate by law the
condition of American women marrying
foreigners, to fix the status of children
born in a foreign country of American
parents residing more or less permanently
: abroad, and to make rules for determining
sileb other kindred points as may seem
best to Congress.
RELATIONS WITH SPAIN.
In compliance with the request of Con
gress, I transmitted to the American Min
ister at Madrid, with instructions to pre
sent it to the. Spanish Government, the
joint resolution approved the 2d of March
last, tendering the people of Spain in tho
name and on tho behalf of the American
people, the congratulations of Congress
upon the efforts to consolidate in Spain
the principles of universal liberty' in a
Republican form of government. The ex
istence of this new republic was inaugu
rated by striking the fetters from the
slaves in Porto Rico. This beneficent
measure was followed by the release of
several thousand persons illegally held as
slaves in Cuba. Next, the Captain-Gen
eral of that colony was deprived of the
power to set, aside tho orders of his su
periors at Madrid, which had pertained
to the office since 1825. The sequestrated
estates of American citizens, which had
been the cause of long and fruitless cor
respondence, were ordered to he restored
to their owners. All these liberal steps
were taken in the face of a violent oppo
sition, derided by the reactionary slave
holders of Havana, who are vainly striving
to stay the march of ideas which has ter
minated slavery in Christendom, Cuba
only excepted. Unhappily, however, this
baneful influence lias thus far succeeded
in defeating the efforts of all liberal minded
men in Spain to abolish slavery in Cuba,
and in preventing the 'romised refo n in
that island. The . ■ ; 6 le for political
supremacy continues there. Tho pm
aln very and aristocratic party in Cuba is
gradually arraigning itself in more and
mu:’ hostility and defiance of tho home
government, while it still maintains a po
litical connection with the Republic in the
Peninsular, and although usurping mid
defying the authority of the home govern
ment whenever such usurpation or defiance
tends iu the direction of oppression or of
tlie maintenance of abuses it is still a
power in Madrid, and is recognized by the
government. Thus an element more
thin genius to continued colonial relations
between Cuba and Spain than that which
inspired the insurrection at Earn- an ele
ment opposed to granting any relief from
misrule and abuse, with no aspirations
after freedom—-commanding no sympathies
in generous breasts, aiming to rivet still
stronger the shackles of slavery and op
pression, has seized many of the emblems
of power in Cuba, and under professions
of loyalty to the mother country, is ex
hausting the resources of the island, and
is doing acts which are at variance with
those principles of justice, of liberality
and of right, which give nobility of char
acter to a Republic in the interests of hu
manity, of civilization, and of progress.
It is to he hoped that this evil influence
may be soon averted.
the vrnoiNruK affair.
The steamer Virginias was, on the 26th
day of September, 187(1, duly registered at
the port of New York as a part of the com
mercial marine of the United States. On
the 4th of October, 1870, having received
tlie certificate of her register in the usual
legal form, she sailed from the port of
New York, and has not since been within
the territorial jurisdiction of the United
States. The 31sfe day of October last,
while sailing under the flag of the United
States, on the high seas, she was forcibly
seized by the Spanish gunboat Tornado,
and was carried into the port of Santiago
ile Cuba, where many of her passengi rs
and crew were inhumanly, and, so far at
least as relates to those who were citizens
of the United States were, without due
process of law, put to death. It is a well
established principle asserted by the
United States from the beginning of tho
National Independence, recognized b)
Great Britain and other maritime powers,
and stated by the Senate in a resolution
passed unanimously on tlie 16th of June,
1858, that “American vessels on the high
seas in time of peace, bearing the Ameri
can flag remain under tho jurisdiction of
tlie country to which they belong, and
therefore any visitation, molestation or
detention of such vessel by force or by the
exhibition of force on the part of a for
eign power is in derogation of the sover
eignty of tho United States. In accord
ance with this principle, the restoration of
the Virginias and the surrender of the
survivors of her passengers and crew, and
a due reparation to the flag and the ; un
ishment of the authorities who had been
guilty of tho illegal acts of violence, 1 re
demanded. The Spanish Government has
recognized the justice of the demand, and
ha- arranged for the immediate delivery
of tlie v ,sel, and for the surrender of the
survivors of the passengers and crew and 1
for a salute to tho flag and for proceedings
looking to the punishment of those who
may be proved to have been guilty of ille
gal nets of violence towards citizens of the
United States, and also towards indemni
fying those who may be shown to be en
titled to indemnity. A copy of a protocol
of a conference between tho Secretary of
State and the Spanish Minister, in which
the terms of this arrangement were agreed
to, is transmitted herewith. The corres
pondence on this subject with tho Lega
tion of the United States in Madrid, was
conducted in cypher and liy cable, and
needs the verification of tho actual text of
the correspondence. It. has seemed to mo
to be due to the importance of tho ease
not to submit this correspondence until
the accurate text can be received by mail.
It is expected shortly, uml will bo sub
mitted when reeeiycd. Iu taking leave
of this subject for the present, I wish to
renew tho expression of my conviction
that the existence of African slavery in
Cuba is the principal cause of the lament
able condition of the Island. I do not
doubt that Congress shares with me the
hope that it will soon he made to disap
pear, and that peace and prosperity may
follow its abolition. The embargoing of
American estates in Cuba, cruelty to
American citizens detected in no act of
hostility to the Spanish Government, the
murdering of prisoners taken with arms
in their hands, and finally the capture
upon the high seas of a vessel sailing un
der the United States flag and bearing the
United States registry, hits culminated in
an outburst of indignation that has seemed
for a time to threaten war. Pending ne
gotiations between the United States and
the Government of Spain on the subject
of this capture, I have authorized the Sec
retary of tho Navy to put our Navy ou a
war footing to the extent at least of the
entire annual appropriation for that branch
of the service, trusting to Congress and
the public opinion of the American people
to justify my action.
AMENDMENTS TO THE CONSTITUTION.
Assuming from the action of the last
Congress iu appointing a Committee on
“Privileges and Elections” to prepare and
report to this Congress a Constitutional
amendment to provide a better method
of electing the President and Yice Presi
dent of the United States, and also from
the necessity of such an amendment that
those will lie submitted to tho State Legis
latures for the ratification of such an im
provement in our Constitution, I suggest
two others for your consideration: Ist.
To authorize the Executive to approve of
so much of any measure passing the two
Houses of Congress as his judgment may
dictate without approving tin; whole. Tho
disapproved portion or portions to be sub
jected to tlie same rules as now, to-wit:
To be referred back to the House in which
the measure or moasmes originated, and
if passed by a two-thirds vole of the two
Houses, tilen to become a law without the
approval of the President. I would add
to this suggestion that there .should be no
legislation by Congress during the last
twenty-four hours of its sitting, except
upon vetoes, in order to give tlie Execu
tive ail opportunity to examine and ap
prove or disapprove bills under,standingly.
Second, To provide by amendment that
when an extra session of Congress is con
ven'd by Executive proclamation, legisla
tion during the continuance of such session
shall be. confined to such subjects as the
Executive may bring forth from time to
time in writing. The advantages to be
gained by these two amendments is obvi
ous. One session in each year are provid
ed for by the Constitution, in which there
are no restrictions as to the subjects of leg
islation by Congress. If more are required
it is always the power of Congress during
their term of office to provide for sessions
at any time. The first of these, amend
ments would protect the public against
the many abuses and waste of public mon
cj%, which creep into appropriation hills
and other important measures passed dur
ing the expiring hours of Congress, to
which otherwise duo consideration cannot
bo given.
TREASURY DEPARTMENT.
The receipts of the government from all
sources for the last fiscal year were $333,-
738,204, and expenditures on all accounts
$200,845,245, thus showing an excess, of
receipts over expenditures of 843,302,059.
Hut it is not probable that this favorable
exhibit will be shown for the present fiscal
year. Indeed, it is very doubtful whether,
except with great economy on the part of
Congress in making appropriations, and
the same economy in administering the
various Departments of the Government,
the revenues will not fall short of meeting
actual expenses, including interest on the
public debt. 1 commend to Congress such
economy, and point out two sources where,
it seems to me it might commence, to wit:
In the appropriations for public buildings
in the many cities where work has not yet
been commenced; in the appropriations fm
river and harbor improvements in those
localities where the improvements arc of
but little benefit to general commerce, anil
for fortifications. There is a still more
fruitful source of expenditure which I
will point out later in this message. I re
fer to the easy method of manufacturing
claims for losses incurred in suppressing
the lute rebellion.
I would not he understood here ns op
posing the erection of good substantial and
even ornamental buildings by the govern
ment. wherein such buildings are needed. •
In fact I approve of the government own
| ing its own buildings in all sections of the
j country, and hope the day’s not far distant
when it will not only possess them but will
| erect ill the Capital suitable residences for
all persons who now receive commutations
for quarters or l ent at govt t ament expense,
nml for the Cabinet, thus sotting an ex
ample to the States which may induce
them to erect buildings for their Senators.
But. 1 would have this work conducted at a
time when the revenues of tho country
j would abundantly justify it.
THIS FINANCIAL HITUATION.
The revenues have materially fallen off
for the first five months of the present
fiscal year from what they wore expected
to produce, owing to the general panic
now prevailing, which commenced about
the middle of September. The full effect
of this disaster, if it should not prove a
blessing in disguise, is yet to bo demon
strated. Iu either event it is your duty to
heed the lesson and to provide bx wise and
well considered legislation, us for as it
lies in your power, against its reeurrenoe,
and to tuke advantage of all benefits that
may have accrued. My own judgment is
that however much individuals may have
suffered, one long step lias been taken
towards specie payments. That we can
never have permanent prosperity until a
specie basis is reached, and that a specie
basis cannot be reached and maintained
until our exports, exclusive of gold, pay
for our import interest due abroad and
other specie obligations, or so nearly so
as tn leave an appreciable accumulation of
the precious metals in the country from
the products of our mines. The develop
ment of the mines of precious metals dur
ing tlie past year and the prospective de
velopment of them for years to come are
gratifying in their results. Could hut
one-lmlf of the gold extracted from the
mines be retained at home, our advance
towards specie payments would be rapid.
To increase our exports sufficient currency
is required to keep all the industries of
tho country employed. Without this,
national as well as individual bankruptcy
must ensue. Undue inflation on tho other
hand, while it might give temporary re
lief, would only lead to inflation of prices;
the impossibility of competing in our own
market for the products of home skill and
labor, and repeated renewals of present
experiences. Elasticity to our circulating
medium therefore, and just enough of it
to transact the legitimate business of the
country and to keep all industries em
ployed, i; what is most to be desired. The
exact medium is specie, the recognised
medium of exchange the world over.
That obtained, we shall have a currency of
an exact degroe of elasticity. If there be
too much of it for the legitimate purposes
of trade and commerce it will flow out of
the country. If too little the reverse will
result. To hold what we have, and to
appreciate our currency to that standard
is tin! problem deserving of the most
serious consideration of Congress.
The experience of the present panic has
proven that the currency of the country,
based ns it is upon the credit of the coun
try, is the best that has ever been devised.
Usually, in times of such trials, currency
has become worthless, or so much de
preciated in value as to inflate tlie values
of all tho necessaries of life as com pared
with the currency. Every ono holding it
has been anxious to dispose of it on any
terms. Now we witness the reverse.
Holders of currency hoard it as they do
gold in former experiences of alike nature.
It is patent to the most casual observer
that much more currency or money is re
quired to transact tho legitimate trade of
the country during the fall and winter
i months, when the vast crops are being ro
; moved, than during tho balance of the
j year. With our present system the
amount in the country remains the same
j throughout the entire year, resulting in
! an accumulation of all the surplus capital
|of the country iu a few centres when not
employed in the moving of tho criqis,
tempted there by the. offer of interest on
i call loans. Interest being paid, this sur
l plus capital must earn this interest paid
with a profit. Being subject to “call” it
I cannot be loaned only in part at best to
tho merchant or manufacturer for a fixed
time. Hence, lio matter how much cur
rency there might be in tlie country, it
would be absorbed, prices keeping pace
j with tho volume aud panics, stringency
and disaster would ever be recurring with
tho autumn. Elasticity in our monetary
system, therefore, is tho object to be at
tained first; and next to tlmt, as far as
possible, a prevention of the use of other
people’s money iu stock and other species
of speculation. To prevent the latter it
seems to me that uuo great step would be
taken by prohibiting the national banks
from paying interest oil deposits, by re
quiring them to hold their reserves in
their owu vaults, and by forcing them
into resumption, though it, would bo only
in legal tender Votes. For these purposes
I would suggest tho establish incut of
clearing houses for your consideration.
To secure tho former, many plans have
been suggested, most, if not all, of which
look to mo more like inflation on the ono
hand, or compelling the government on
the other to pay the interest, without cor- j
responding benefits, upon the surplus j
funds of the country during the seasons
when otherwise unemployed. I submit
for your consideration whether this dill!
eulty might not be overcome by authoriz
ing the Secretary of tl e Treasury to issue
nt any one time to National Banks of
issue, any amount q[ their own notes
NUMBER 32.
below a fixed per oeutugo of their issue,
say forty per cent, upon the banks de
positing with the Treasurer of the United
1 States an amount of government bonds
| equal to tlio amount of notes demanded.
Nay four per cent, of the interest accruing
on the bonds so pledged during the time
j they remain with the Treasurer as security
for tho increased circulation—the bonds so
pledged to be redeemable by the banks at
their pleasure, either in whole or in part
by returning their own hills for cancella
tion to an amount equal to the face of tho
bonds withdrawn. I would further sug
gest for your consideration the propriety
of authorizing National Banks to diminish,
their standing issue at pleasure, by re
turning for cancellation their own bills and
withdrawing so many “U. S.”bondsas ale
pledged for the hills returned. In view of
the great actual contraction that has taken
place in the currency, and the compara
tive contraction continuously goiug on due
to tho increase of population, increase of
manufactories mill nil the industries, I do
not believe that there is too much of it
now for the dullest period of the year.
Indeed, if clearing houses should Vie es
tablished, thus forcing redemption, it is a
question for your consideration whether
banking should not be made free, retaining
all the safeguards now required to secure
hill holders. In any modification of tho
present laws regulating National Banks os
a further step towards preparing for the
resumption of specie payments, I invito
your attention to a consideration of tlio
propriety of exacting from them the reten
tion as a part of their reserve, either tho
whole or a part of the gold interest ac
cruing upon tlio bonds pledged ns security
for their issue. I have not reflected
enough on tlie bearing this might have iu
producing a scarcity of coin with which to
pay duties on imports to give it my posi
tive recommendation, hut your attention
ia invited to the subject. During the last
four years tlio currency lias been con
tracted directly by the withdrawal of tlio
present certificates, compound interest
notes anil 7-30 bonds, outstanding on tho
4th of March, 1869, all of which took tho
ulnce of legal tenders in the hank reserves
to the extent of sixty-three millions of
dollars. During the same peri oil there
has been a much larger comparative eon
traction of the currency. The population
of the country lias largely increased.
Move than 25,000 miles of railroad liavo
been built, requiring the active use of
capital to operate them. Millions of acres
!of land have been opened to cultivation
I requiring capital to move the products.
: Manufactories have multiplied beyond all
precedent in the same period of time, re
quiring capital weekly for tho payment of
wages and for the purchase of material,
and probably the largest of all compara
tive contraction arises from the organiza
tion of free labor in tho South. Now
every laborer thero receives liis wages,
and for want of savings banks, the greater
part of Bueli wages is carried in the pocket
;or hoarded until required for use. These
suggestions aro thrown out for your con
sideration without any recommendation
that they shall bo adopted literally, but
| hoping the best method may be arrived at
to secure such an elasticity of the currency
as will keep employed all the industries of
the country, and prevent snch an inflation
as will put off indefinitely the resumption
of specie payments, an object so devoutly
to be wished for by all, and by none rnoro
earnestly than tlio class of people most
directly interested—those who earn their
bread by the sweat of their brow. Tho
decisions of Congress on this subject will
j have the hearty support of the Executive.
AMERICAN SHIP-BUILDING.
11l previous messages I have called al-
I tentiou to tho decline iu American ship
building, and reccommend such legislation
;as would securo to us our proportion of
the carrying trade. Stimulated by
high rates and abundance of freight, tlio
progress for the last year in ship-building
has been very satisfactory. There has been
'an increase of about three per cent, in the*
amount transported in American vessels
Over tho amount of last year. With tlio
reduced cost of material which has taken
place, it may reasonably la; hoped that
this progress w ill be maintained and evi n
increased. However, as w e pay about 880,-
000,000 per annum to foreign vessels for tho
transportation of our surplus products to a
market, thus increasing tho balance of
trade against us to this amount, the sub
; ject is one worthy of your serious consid
| elation.
CHEAP TRANSPORTATION
; is a subject that has attracted tho at
tention of both producers and consumers
for the past five years, and has contribu
ted to, if it lias not been tho direct cause
of tlio 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, I have nothing to recommend
until their report is read. Thero is ono
work, however, of a national character in
which the greater portion of tlie East
and the West, tho North and tho South
are equally interested, to which I will
invito your attention. Tlie State of New
York has a canal connecting Lake Erie
with tide water on the Hudson river. Tlio
State of Illinois lias a similar work
connecting Lake Michigan with navigation
water in tlio Illinois river, thus muking
\ ater communication inland, between tlio
East and the West and South. These
: great artificial water courses are the pTo
[Ginfinui'/t on the i/li / ojt'-\