,, 



PUBLIC DOCUMENTS. 



Ut ion by Congress during the last twenty-four hours 

 of iu Hitting, except upon vetoes, in order to give 

 the Executive an opportunity to examine and ap- 

 prove or disapprove bills understanding!}'. 



Second. To provide, by amendment, tliut when an 

 extra session of Congress U convened by Executive 

 proclamation, legislation during the continuance of 

 uch extra session shall be confined to such subjects 

 as the Executive may bring before it, from time to 

 time, in writing. 



The advantages to be gained by theae two amend- 

 ments are too obvious for me to comment upon them. 

 One session in each year is provided for by the Con- 

 stitution, in which there are no restrictions as to the 

 subjects of legislation by Congress. If more arc re- 

 quired, it is always in the power of Congress, during 

 their term of office, to provide for sessions at any 

 time. The first of these amendments would protect 

 the public against the many abuses, and waste of 

 public moneys, which creep into appropriation bills, 

 and other importapt measures passing during the 

 expiring hours of Congress, to which, otherwise, due 

 consideration cannot be given. 



TBEASUBT DEPABTMXST. 



The receipts of the Government from all sources, 

 for the hut fiscal year, were $883,788,204, and expen- 

 ditures on all accounts $290,846^846, thus showing an 

 excess of receipt* over expenditures of $43,3'.' 

 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 Government, the revenues will not 

 fall short of meeting actual expenses, including in- 

 terest on the public debt. 



I commend to Congress such economy, and point 

 out two sources where, it seems to me, it might com- 

 mence, to wit, in the appropriations for public build- 

 ings in the many cities, where work has not yet been 

 commenced; in the appropriations for river and har- 

 bor improvement in those localities where the im- 

 provements are of but little benefit to general com- 

 merce, and for fortifications. 



There is a stillmore fruitful source of expenditure, 

 which I will point out later in this message. I re- 

 fer to the cany method of manufacturing claims for 

 losses incurred by suppressing the late rebellion. 



I would not be* understood here as opposing the 

 erection of good, substantial, and even ornni 

 buildings, by the Government whenever such build- 

 ings are needed. In fact. I approve of the Govern- 

 ment owning its own buildings, in all sections ( the 

 country, ana hope the day is not far distant when it 

 will not only possess them, but will erect in the 

 capital suitable residences for all persons who now 

 receive commutation for quarters or rent at Govern- 

 ment expense, and for the cabinet, thus setting an 

 example to the States which mav induce them to 

 erect buildings for their Senators, but I would have 

 thin work conducted at a time when the revenues of 

 the country would abundantly justify it. 



The revenues have materially fallen off for the 

 first five months of the present fiscal year from what 

 thoy were expected to produce, owing to the general 

 panic now prevailing, which commenced about the 

 miildlo of September last. The full effect of this 

 disaster, if It should not prove a " blessing in dU- 

 gulse," is yet to be demonstrated. In either event 

 it Is vnur duty to beed the lesson, and to provide 

 by wise and well-considered legislation, as far as lies 

 In your power, against its recurrence, and to take 

 advantage of all benefits that may have accrued. 



My nwn judgment is that, however much indi- 

 viduals may have suffered, one long step has l>i-< n 

 tk.-n toward 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 Imports, interest duo abroad, and other 



specie obligations, or so nearly so as to leave an ap- 

 preciable accumulation of the precious metals in thu 

 country from thu products of our n. 



The development of the mines of precious metals 

 during the past year and the pro 

 inent of them I'ur years to come, are gratifying in 

 their results. Could but one-half of the gold ex- 

 tracted from the mines be retained at home, our ad- 

 vance toward specie payments would be rapid. 



To increase our exports, sufficient currency is n - 

 quired to keep all the industries of the < 

 ployed. Without this, national as well individual 

 bankruptcy mus-t eiiaue. Undue inflation, on the 

 other hand, while it might give temporary relief, 

 would only lead to inflation of prices, the impossibil- 

 ity of competing in our own markets fur the ; 

 ucts of home skill and labor, and repeated i< 

 a, s of present experiences. Elasticity to our circu- 

 lating medium, therefore, and just enough of it to 

 transact the legitimate IMIMUCSS of the country, and 

 to keep all industries employed, is what is most to 

 be desired. The exact medium i- s| >ccic, tin i 

 uized medium of exchange the world over. That 

 obtained, we shall have a currency of an < 

 of elasticity. If there be too much of it i 

 legitimate purposes of trade and commerce, It will 

 flow out of the country. If too little, the n 

 will result. To hold what we have and to appreciate 

 our currency to that standard, is the prol.Um de- 

 serving of the most serious consideration of Con- 

 gress. 



The experience of the present panic has proved 

 that the currency of the count n-, bused as it is upon 

 the credit of the country, is the best that has over 

 been devised. Usually in times of such trials, cur- 

 rency has become worthless, or so much < 

 in value as to inflate the values of all the necessaries 

 of lite as compared with the currency. Kvery one 

 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 txjiri- 

 r a like n..' 



It is patent to the most casual observer that im:< h 

 more currency, or money, is required to IIM.-:.. t il.e 

 legitimate trade of the country during the tall uiul 

 winter months, when the va.-t ei- g re- 



moved, than during the balance of the year. With 

 our present system the amount in the country re- 

 mains the same throughout the entire yiar, n suit- 

 ing in an accumulation of all the surplus capital of 

 the country in a i. whan n<timplo\id in 



the moving of crops, tempted there l>v the offer of 

 interest on call loans. Interest being paid, this 

 surplus capital must earn this inten.-t paid with a 

 profit. Being subject to " call," it cannot i. 1 

 only in part at best, to the merchant or manufacturer 

 for a fixed term. Hence, no mutter how much cur- 

 rency there might be in the country, it would he ab- 

 sorbed, prices keeping iiocc with the volume, and 

 panics, stringency, and disasters, would m r he n - 

 curring with the autumn. Elasticity in our i 

 tary system, therefore, is the object to be at! 

 first, and next to that, as far as p< 

 tion of the use of other people's n !, and 



other species of speculation. To prevent the latter 

 it seems to mo that one great step would lie tukin 

 by prohibiting the national banks irom ps.jing intir- 

 est on deposits, by requiring them to hold tEi 

 serves in their own vaults, and by forcing them into 

 resumption, though it would onlv be in legal- < 

 For this purpose I would suggest, the > 

 lifhment of clearing-houses for yi:r consider..- 



To secure the former many plans have been sug- 

 gested, most, if not all, of which look to mi 

 like inflation on the one hand, or compelling the 

 Government, on the other, to pay intc:. 

 corresponding benefits, upon the surplus fund? 

 country during the seasons when otherwise unem- 

 ployed. 



1 submit for your consideration whether this diffi- 

 culty might not bo overcome by authorizing the 



