His approval of the act providing for the resumption of specie payments, and suggesting further legislation to carry that law into effect.

JANUARY 14, 1875.-Referred to the Committee on Finance and ordered to be printed.

To the Senate of the United States:

Senate bill No. 1044, "to provide for the resumption of specie-payments," is before me, and this day receives my signature of approval. I venture upon this unusual method of conveying the notice of approval to the "house in which the measure originated," because of its great importance to the country at large, and in order to suggest further legislation which seems to me essential to make this law effective. It is a subject of congratulation that a measure has become law which fixes a date when specie resumption shall commence, and implies an obligation on the part of Congress-if in its power-to give such legis. lation as may prove necessary to redeem this promise.

To this end, I respectfully call your attention to a few suggestions: First. The necessity of an increased revenue to carry out the obliga tion of adding to the sinking fund annually one per cent. of the public debt, amounting now to about thirty-four millions of dollars per annum, and to carry out the promises of this measure to redeem, under certain contingencies, eighty millions of the present legal tenders, and, without contingency, the fractional currency now in circulation.

How to increase the surplus revenue is for Congress to devise, but I will venture to suggest the duty on tea and coffee might be restored without permanently enhancing the cost to the consumers, and that the ten per cent. horizontal reduction of the tariff on articles specified in the law of June 6, 1872, be repealed. The supply of tea and coffee already on hand in the United States would in all probability be advanced in price by adopting this measure. But it is known that the adoption of free entry to those articles of necessity did not cheapen them, but merely added to the profits of the countries producing them, or of the middle men in those countries, who have the exclusive trade in them.

Second. 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 fluctuation in the value of the paper-currency. With gold at a premium of anything over 19 per cent. above the currency in use, it is probable, almost certain, that silver would be bought up for exportation as fast as it was put out, or 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, thereby causing a direct loss to the com munity at large and great embarrassment to trade.

As the present law commands final resumption on the first day of January, 1879, and as the gold receipts by the Treasury are larger than the gold payments and the currency receipts are smaller than the cur rency payments, thereby making monthly sales of gold necessary, to meet currency expenses, it occurs to me that these difficulties might be remedied by authorizing the Secretary of the Treasury to redeem legaltender notes whenever presented in sums not less than one hundred dollars and multiples thereof, at a premium for gold of ten per cent., less interest at the rate of two and one-half per cent. per annum from the 1st day of January, 1875, to the date of putting this law into opera tion, and diminishing this premium at the same rate until final resumption, changing the rate of premium demanded from time to time as the interest amounts to one-quarter of one per cent. 1 suggest this rate of interest because it would bring currency at par with gold at the date fixed by law for final resumption. I suggest ten per cent. as the demand premium at the beginning, because I believe this rate would insure the retention of silver in the country for change.

The provisions of the third section of the act will prevent combinations being made to exhaust the Treasury of coin.

With such a law it is presumable that no gold would be called for not required for legitimate business purposes. When large amounts of coin should be drawn from the Treasury, corresponding large amounts of currency would be withdrawn from circulation, thus causing a sufficient stringency in currency to stop the outward flow of coin.

The advantages of a currency of a fixed known value would also be reached. In my opinion, by the enactment of such a law, business and industries would revive, and the beginning of prosperity on a firm basis would be reached.

Other means of increasing revenue than those suggested should probably be devised, and also other legislation.

In fact, to carry out the first section of the act, another mint becomes necessary. With the present facilities for coinage, it would take a period probably beyond that fixed by law for final specie resumption to coin the silver necessary to transact the business of the country.

There are now smelting-furnaces for extracting the silver and gold from the ores brought from the mountain Territories, in Chicago, Saint Louis, and Omaha-three in the former city-and as much of the change required will be wanted in the Mississippi Valley States, and as the metals to be coined come from west of those States, and, as I understand, the charges for transportation of bullion from either of the cities named to the Mint in Philadelphia, or to New York City, amount to four dollars for each one thousand dollars' worth, with an equal expense for transportation back, it would seem a fair argument in favor of adopting one or more of those cities as the place or places for the establishment of new coining facilities.

I have ventured upon this subject with great diffidence, because it is so unusual to approve a measure-as I most heartly do this, even if no further legislation is attainable at this time-and to announce the fact by message. But I do so because I feel that it is a subject of such vital importance to the whole country that it should receive the attention of, and be discussed by, Congress and the people through the press, and in every way, to the end that the best and most satisfactory course may be reached of executing what I deem most beneficial legislation on a most vital question to the interests and prosperity of the nation.

Copy of a telegram from the commanding general of the military Department of the Pacific, in relation to the length of time of retention of military prisoners, under section 23, act of January 30, 1834.

JANUARY 14, 1875.-Referred to the Committee on the Judiciary and ordered to be

printed.

WAR DEPARTMENT, January 13, 1875. The Secretary of War has the honor to transmit to the United States Senate copy of telegram dated the 11th instant, from the commanding general, military Division of the Pacific, relative to decision of the United States district justice at Portland, Oreg., relative to the time of retention of prisoners by the military, under section 23, act of January 30, 1834, and to request, for the reasons stated therein, that the necessary legislation be had to extend time, so as to enable the United States to execute the requirements of sections 20 and 21 of the act referred to.

WM. W. BELKNAP,
Secretary of War.

[By telegram, dated San Francisco, January 11, 1875.]

To ADJUTANT-GENERAL United States Army:

The following dispatch received from General Howard:

"PORTLAND, OREG., January 7, 1875. "United States district justice decides military authorities can't hold prisoners beyond five days under section 23, act of January 30, 1834; can't get prisoners from Sitka before civil authorities here under from thirty to sixty days. Please ask for legislation extending the time so as to give reasonable time to bring prisoners to Portland and deliver to United States marshal. This action necessary to enable United States to execute requirements of sections 20 and 21 of said act. "

J. M. SCHOFIELD,
Major-General.

WAR DEPARTMENT, ADJUTANT-GENERAL'S OFFICE,

Official copy:

Washington, January 12, 1875.

E. D. TOWNSEND,
Adjutant-General.

2d Session.

LETTER

No. 16.

FROM

THE SECRETARY OF THE TREASURY,

SUBMITTING,

In compliance with a Senate resolution of June 11, 1874, information respecting assay-offices at Portland, Oreg., and Boise City, Idaho.

JANUARY 18, 1875.-Referred to the Committee on Finance and ordered to be printed.

TREASURY DEPARTMENT, Washington, D. C., January 6, 1875. SIR: On the 11th of June, 1874, the Senate passed the following

resolution, viz:

That the Secretary of the Treasury be instructed to inquire and report at the next session of Congress, there is such a as to the necessity of an assay-office at Portland, Oreg.; and, if necessity, whether a construction of the same, or purchase from the owners of the present private assay-office, would be most expedient; and also as to the expediency of removing or abolishing the assay-office at Boise City, Idaho.

The inquiry contemplated by the above resolution has been made, and the following facts ascertained.

The entire bullion-product of Oregon and a considerable portion of that of Northern Idaho find their way to the San Francisco market, either in the form of unrefined bars or the original dust, and are there either coined or exported.

The receipts from Oregon and Northern Idaho reached at one time as high as $8,000,000 per annum, but the amount has annually decreased until it does not exceed at the present time $1,500,000, about two-thirds of which amount, it is estimated, is marketed at Portland, and as no material increase in the production of bullion from the mines of that section of the country is anticipated, there does not, in my opinion, exist any necessity for establishing an assay-office at Portland.

A suitable assay-office having been erected, fitted up, and put in operation at Boise, Idaho, it may as well be continued, but the expense of Conducting it should be limited to $7,500 per annum.

I have the honor to be, sir, very respectfully,

Hon. HENRY WILSON,

President United States Senate.

B. H. BRISTOW, Secretary of the Treasury.