measured by a gold standard. Upon this statement of facts it would seem but just and equitable that the six per cent. interest now paid by the Government should be applied to the reduction of the principal in semi-annual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent. in gold would at present rates be equal to nine per cent. in currency, and equivalent to the pay-value of our paper issues, when compared with ment of the debt one and a half time in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisied. The lessons of the past admonish the lender that it is not well to be over anxious in exacting from the borrower rigid compliance with the letter of the bond.* If provision be made for the payment of the indebtedness of the Government in the manner suggested, our nation will rapidly recover its wonted prosperity. Its interests require that some measure should be taken to release the large amount of capital invested in the securities of the Government. It is not now merely unproductive, but in taxation annually consumes $150,000,000, which would otherwise be used by our enterprising people in adding to the wealth of the nation. Our commerce, which at one time successfully rivaled that of the great maritime Powers, has rapidly diminished, and our industrial interests are in a depressed and languishing condition. The development of our inexhaustible resources is checked, and the fertile fields of the South are becoming waste for want of means to till them. With the release of capital, new life would be infused into the paralyzed energies of our people, and activity and vigor imparted to every branch of industry. Our people need encouragement in their efforts to recover from the effects of the rebellion and of injudicious legislation; and it should be the aim of the Government to stimulate them by the prospect of an early release from the burdens which impede their prosperity. If we cannot take the burdens from their shoulders, we should at least manifest a willingness to help to bear them. In referring to the condition of the circulating medium, I shall merely reiterate, substantially, that portion of my last annual message which relates to that subject. The proportion which the currency of any country should bear to the whole value of the annual produce circulated by its means is a question upon which political economists have not agreed. Nor can it be controlled by legislation, but must be left to the irrevocable laws which everywhere regulate commerce and trade. The circulating medium will ever irresistibly flow to those points where it is in greatest demand. The law of demand and supply is as unerring as that which regulates the tides of the ocean; and indeed currency, like the tides, has its ebbs and flows throughout the commercial world. At the beginning of the rebellion the banknote circulation of the country amounted to not * See resolutions of Senate and House of Represent atives thereon, pp. 391. much more than $200,000,000; now the circulation of national bank notes and those known as "legal-tenders" is nearly $700,000,000 While it is urged by some that this amount should be increased, others contend that a decided reduction is absolutely essential to the best interests of the country. In view of these diverse opinions, it may be well, to ascertain the real a metallic or convertible currency. For this purpose let us inquire how much gold and silver could be purchased by the $700,000,000 of paper money now in circulation. Probably not more than half the amount of the latter, showing that when our paper currency is compared with gold and silver its commercial value is compressed into $350,000,000. This striking fact makes it the obvious duty of the Government, as early as may be consistent with the principles of sound political economy, to take such measures as will enable the holder of its notes and those of the national banks to convert them, without loss, into specie or its equivalent. A reduction of our paper-circulating medium need not necessarily follow. This, however, would depend upon the law of demand and supply; though it should be borne in mind that by making legal-tender and bank notes convertible into coin or its equivalent, their present specie value in the hands of their holders would be enhanced one hundred per cent. The Legislation for the accomplishment of a result so desirable is demanded by the highest public considerations. The Constitution contemplates that the circulating medium of the country shali be uniform in quality and value. At the time of the formation of that instrument the country had just emerged from the war of the Revolution, and was suffering from the effects of a redundant and worthless paper currency. sages of that period were anxious to protect their posterity from the evils which they themselves had experienced. Hence, in providing a circulating medium, they conferred upon Congress the power to coin money and regulate the value thereof, at the same time prohibiting the States from making anything but gold and silver a tender in payment of debts. The anomalous condition of our currency is in striking contrast with that which was originally designed. Our circulation now embraces, first, notes of the national banks, which are made receivable for all dues to the Government, excluding imposts, and by all its creditors, excepting in payment of interest upon its bonds and the securities themselves; second, legal-tender notes issued by the United States, and which the law requires shall be received as well in payment of all debts between citizens as of all Government dues, excepting imposts; and, third, gold and silver coin. By the operation of our present system of finance, however, the metallic currency, when collected, is reserved only for one class of Government creditors, who, holding its bonds, semi-annually receive their notes in coin from the national Treasury. There is no reason which will be accepted as satisfactory by the people why those who defend us on the land and protect us on the sea; the pensioner upon the gratitude of the nation, bearing the scars and wounds received while in its service; the public servants in the various | The feasibility of making our currency correspond with the constitutional standard may be seen by reference to a few facts derived from our commercial statistics. The aggregate product of precious metals in the United States from 1849 to 1867 amounted to $1,174,000,000, while for the same period the net exports of specie were $741,000,000. This shows an excess of product over net exports of $433,000,000. There are in the Treasury $103,407,985 in coin, in circulation in the States on the Pacific coast about $40,000,000, and a few millions in the national and other banks-in all less than $160,000,000. Taking into consideration the specie in the country prior to 1849 and that produced since 1867, and we have more than $300,000,000 not accounted for by exportation or by the returns of the Treasury, and therefore most probably remaining in the country. pense incident to such establishments, and let all our precious metal be exported in bullion. The time has come, however, when the Government and national banks should be required to take the most efficient steps and make all necessary arrangements for a resumption of specie payments. Let specie payments once be earnestly inaugurated by the Government and banks, and the value of the paper circulation would directly approximate a specie standard. Specie payments having been resumed by the Government and banks, all notes or bills of paper issued by either of a less denomination than twenty dollars should by law be excluded from circulation, so that the people may have the benefit and convenience of a gold and silver currency which, in all their business transactions, will be uniform in value at home and abroad. Every man of property or industry, every man who desires to preserve what he honestly possesses, or to obtain what he can honestly earn, has a direct interest in maintaining a safe circulating medium-such a medium as shall be real and substantial, not liable to vibrate with opinions, not subject to be blown up or blown down by the breath of speculation, but to be made stable and secure. A disordered currency is one of the greatest political evils. It undermines the virtues necessary for the support of the social system, and encourages propensities destructive of its happiness. It wars against industry, frugality, and economy, and it fosters the evil spirits of extravagance and speculation." It has been asserted by one of our profound and most gifted statesmen, that "of all the contrivances for cheating the laboring classes of mankind none has been more effectual than that which deludes them with paper money. This is the most effectual of inventions to fertilize the These are important facts, and show how com- rich man's fields by the sweat of the poor man's pletely the inferior currency will supersede the brow. Ordinary tyranny, oppression, excessive better, forcing it from circulation among the taxation-these bear lightly on the happiness masses, and causing it to be exported as a mere of the mass of the community compared with a article of trade, to add to the money capital of fraudulent currency and the robberies commitforeign lands. They show the necessity of re-ted by depreciated paper. Our own history has tiring our paper money, that the return of gold recorded for our instruction enough and more and silver to the avenues of trade may be in- than enough of the demoralizing tendency, the vited, and a demand created which will cause injustice, and the intolerable oppression on the the retention at home of at least so much of the virtuous and well-disposed of a degraded paper productions of our rich and inexhaustible gold-currency authorized by law or in any way counbearing fields as may be sufficient for purposes tenanced by Government. of circulation. It is unreasonable to expect a return to a sound currency so long as the Government and banks, by continuing to issue irredeemable notes, fill the channels of circulation with depreciated paper. Notwithstanding a coinage by our mints, since 1849, of $874,000,000, the people are now strangers to the currency which was designed for their use and benefit, and specimens of the precious metals bearing the national device are seldom seen, except when produced to gratify the interest excited by their novelty. If depreciated paper is to be continued as the permanent currency of the country, and all our coin is to become a mere article of traffic and speculation, to the enhancement in price of all that is indispensable to the comfort of the people, it would be wise economy to abolish our mints, thus saving the nation the care and ex It is one of the most successful devices, in times of peace or war, of expansions or revulsions, to accomplish the transfer of all the precious metals from the great mass of the people into the hands of the few, where they are hoarded in secret places or deposited under bolts and bars, while the people are left to endure all the inconvenience, sacrifice, and demoralization resulting from the use of depreciated and worthless paper. * * * During the fiscal year. ending June 30, 1868, six million six hundred and fifty-five thousand seven hundred acres of public land were disposed of. * * * On the 30th of June, 1868, one hundred and sixty-nine thousand six hundred and forty-three names were borne on the pension rolls, and during the year ending on that day the total amount paid for pensions, including the expenses * * * * * of disbursement, was $24,010,982, being $5,391,- | my administration to these principles, I have on 025 greater than that expended for like pur- no occasion lent support or toleration to unlawful poses during the preceding year. *expeditions set on foot upon the plea of repubTreaties with various Indian tribes have been lican propagandism or of national extension or concluded, and will be submitted to the Senate aggrandizement. The necessity, however, of for its constitutional action. repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of European monarchical power and influence, and the increase of American republican ideas, interests, and sympathies. The strength of our military force on the 30th of September last was forty-eight thousand men, and it is computed that, by the 1st of January next, this number will be decreased to forty-three thousand. It is the opinion of the Secretary of War that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country; and in view of the great expense attending the military peace establishment, and the absolute necessity of retrenchment wherever it can be applied, it is hoped that Congress will sanction the reduction which hie report recommends. While in 1860 sixteen thousand three hundred men cost the nation $16,472,000, the sum of $65,682,000 is estimated as necessary for the support of the army during the fiscal year ending June 30, 1870. The estimates of the War Department for the last two fiscal years were, for 1867, $33,814,461; and for 1868, $25,205,669. The actual expenditures during the same periods were, respectively, $95,224,415 and $123,246,648. The estimate submitted in December last for the fiscal year ending June 30, 1869, was $77,124,707; the expenditures for the first quarter, ending the 30th of September last, were $27,219,117, and the Secretary of the Treasury gives $66,000,000 as the amount which will probably be required during the remaining three quarters, if there should be no reduction of the army-making its aggregate cost for the year considerably in excess of $93,000,000. The difference between the estimates and expenditures for the three fiscal years which have been named is thus shown to be $175,545,343 for this single branch of the public service. * * * The total number of vessels in the navy is two hundred and six, mounting seventeen hundred and forty-three guns. Eighty-one vessels of every description are in use, armed with six hundred and ninety-six guns. The number of enlisted men in the service, including apprentices, has been reduced to eight thousand five hundred. * * * It cannot be long before it will become necessary for this Government to lend some effective aid to the solution of the political and social problems which are continually kept before the world by the two republics of the Island of St. Domingo, and which are now disclosing themselves more distinctly than heretofore in the Island of Cuba. The subject is commended to your consideration with all the more earnestness because I am satisfied that the time has arrived when even so direct a proceeding as a proposition for an annexation of the two republics of the Island of St. Domingo would not only receive the consent of the people interested, but would also give satisfaction to all other foreign nations. I am aware that upon the question of further extending our possessions it is apprehended by some that our political system cannot successfully be applied to an area more extended than our continent; but the conviction is rapidly gaining ground in the American mind that, with the increased facilities for intercommunication between all portions of the earth, the principles of free government, as embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend within their sphere and influence the civilized nations of the world. * ** I renew the recommendation contained in my communication to Congress dated the 18th July last, a copy of which accompanies this message, that the judgment of the people should be taken on the propriety of so amending the Federal Constitution that it shall provide Third. For the election of Senators of the United States directly by the people of the seyeral States, instead of by the legislatures; and First. For an election of President and Vice President by a direct vote of the people, instead of through the agency of electors, and making them ineligible for re-election to a second term. Second. For a distinct designation of the perThe ordinary postal revenue for the fiscal son who shall discharge the duties of President year ending June 30, 1868, was $16,292,600, and | in the event of a vacancy in that office by the the total expenditures, embracing all the service death, resignation, or removal of both the Presifor which special appropriations have been made dent and Vice President. by Congress, amounted to $22,730,592, showing an excess of expenditures of $6,437,991. *** Comprehensive national policy would seem to sanction the acquisition and incorporation into our Federal Union of the several adjacent continental and insular communities as speedily as it can be done peacefully, lawfully, and without any violation of national justice, faith, or honor. Foreign possession or control of those communities has hitherto hindered the growth and impaired the influence of the United States. Chronic revolution and anarchy there would be equally injurious. Each one of them, when firmly established as an independent republic, or when incorporated into the United States, would be a new source of strength and power. Conforming | obligatory upon all.” Fourth. For the limitation to a period of years of the terms of federal judges. Profoundly impressed with the propriety of making these important modifications in the Constitution, I respectfully submit them for the early and mature consideration of Congress. We should as far as possible remove all pretext for violations of the organic law, by remedying such imperfections as time and experience may develop, ever remembering that "the Constitution which at any time exists, until changed by an explicit and authentic act of the whole people, is sacredly In the performance of a duty imposed upon | are vested all legislative powers, and upon me by the Constitution, I have thus communi- them devolves the responsibility as well for cated to Congress information of the state of the framing unwise and excessive laws, as for neUnion, and recommended for their consideration glecting to devise and adopt measures absolutely such measures as have seemed to me necessary demanded by the wants of the country. Let us and expedient. If carried into effect, they will earnestly hope that before the expiration of our hasten the accomplishment of the great and be- respective terms of service, now rapidly drawing neficent purposes for which the Constitution was to a close, an all-wise Providence will so guide ordained, and which it comprehensively states our counsels as to strengthen and preserve the were "to form a more perfect Union, establish Federal Union, inspire reverence for the Constijustice, insure domestic tranquillity, provide for tution, restore prosperity and happiness to our the common defense, promote the general wel- whole people, and promote "on earth peace, fare, and secure the blessings of liberty to good will toward men. ANDREW JOHNSON. ourselves and our posterity. In Congress WASHINGTON, December 9, 1868. XXXIX. POLITICAL VOTES IN THIRD SESSION OF FORTIETH CONGRESS. CONDEMNATION OF PRESIDENT JOHNSON'S PROPOSITION RESPECTING THE PAYMENT OF THE PUBLIC DEBT. Condemnatory Resolutions. IN SENATE. 1868, December 14-Mr. Willey submitted this resolution, which was reported from the Committee on Finance by Mr. Cattell, December 16: Resolved, That the Senate, properly cherishing and upholding the good faith and honor of the nation, do hereby utterly disapprove of and condemn the sentiments and propositions contained in so much of the late annual message of the President of the United States as reads as follows: 'It may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment, measured by a gold standard. Upon this statement of facts, it would seem but just and equitable that the six per cent. interest now paid by the Government should be applied to the reduction of the principal in semi-annual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent. in gold would at present rates be equal to nine per cent. in currency, and equivalent to the payment of the debt one and a half times in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisfied. The lessons of the past admonish the lender that it is not well to be over-anxious in exacting from the borrower rigid compliance with the letter of the bond." Mr. Hendricks moved this as a substitute: That the Senate cordially endorse the sentiment in the President's message, "that our national credit should be sacredly observed," and declare that the public debt should be paid as rapidly as practicable, exactly in accordance with the terms of the contracts under which the several loans were made, and where the obligations of the Government do not expressly state upon their face, or the law under which they were issued does not provide, that they shall be paid in coin, they ought in right and justice to be paid in the lawful money of the United States. Which was disagreed to—yeas 7, nayɛ 44, as follow: YEAS-Messrs. Buckalew, Davis, Hendricks, McCreery, Saulsbury, Vickers, Whyte-7. Cole, Conkling, Corbett, Dixon, Drake, Edmunds, Yates--44. December 18-The resolution was adoptedyeas 43, nays 6, as follow: YEAS-Messrs. Abbott, Anthony, Cameron, Cattell, Chandler, Cole, Conkling, Corbett, Cragin, Dixon, Edmunds, Ferry, Fessenden, Frelinghuysen, Grimes, Harlan, Harris, Henderson, Howard, Howe, Kellogg, Morgan, Morrill of Vermont, Nye, Osborn, Pomeroy, Ramsey, Robertson, Ross, Sawyer, Sherman, Spencer, Stewart, Sumner, Thayer, Van Winkle, Wade, Warner Willey, Williams, Wilson, Yates-43. NAYS-Messrs. Davis, McCreery, Patterson of Ten. nessee, Saulsbury, Vickers, Whyte—6. IN HOUSE. land, Polsley, Price, Prince, Pruyn, Randall, Raum, Jones, Mungen, Lawrence S. Trimble-6. 1868, December 14.-Mr. Broomall moved that the rules be suspended, so as to enable him to submit the following preamble and resolution: Whereas the President of the United States, in his annual message to the Fortieth Congress, at its third session, says: "It may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment, measured by a gold standard. Upon this statement of facts it would seem but just and equitable that the six per cent. interest now paid by the Government should be applied to the reduction of the principal in semi-annual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent. in gold would at present rates be equal to nine per cent. in currency, and equivalent to the payment of the debt one and a half time in a fraction less than The second division of the question-being seventeen years. This, in connection with all the remaining portion of the preamble and resothe other advantages derived from their invest-lution-was agreed to without a division. ment, would afford to the public creditors and liberal compensation for the use of their capital, and with this they should be satisfied. The lessons of the past admonish the lender that it is not well to be over anxious in exacting from the borrower rigid compliance with the letter of the bond;" and whereas such sentiments, if permitted to go to the world without immediate protest, may be understood to be the sentiments of the people of the United States That the legislatures of the Territories hereand their Representatives in Congress: there-inbefore named shall, at their first session after fore, the passage of this act, provide by law for a reapportionment of the members of the several legislatures as nearly equal as may be among council and legislative districts, entitled each to elect three members of council and three representatives; and that the outlying districts, if fair Vote on Minority Representation. IN HOUSE. 1869, January 19-Pending a bill (H. R. 1824) to preserve the purity of elections in the several Territories, Mr. Phelps moved this as an additional section: Resolved, That all forms and degrees of repudiation of national indebtedness are odious to the American people. And that under no circumstances will their Representatives consent to offer the public creditor, as full compensation, a less amount of money than that which the Gov-any, to which it may be necessary that a less ernment contracted to pay him. The rules were suspended-yeas 135, nays 29. A division of the question was called, the first division to include the preamble and the first sentence of the resolution. The previous question was called and seconded, and the main question ordered. A motion to reconsider the vote ordering the main question was tabled, yeas 134, nays 37. The question recurring on the first division of the question, a motion to table the preamble was lost-yeas 37, nays 133. The first division of the question-being the preamble and the first sentence of the resolution -was then agreed to, yeas 155, nays 6, not voting 60, as follow: YEAS-Messrs. Allison, Ames, Arnell, James M. Ashley, Axtell, Bailey, Baker, Baldwin, Banks, Barnum, Beaman, Beatty, Benjamin, Benton, Bingham, Blair, Boutwell, Bowen, Boyden, Boyer, Broomall, Buckley, Roderick R. Butler, Callis, Cary, Chanler, Churchill, Reader W. Clarke, Sidney Clarke, Coburn, Cook, Corley, Covode, Cullom, Dawes, Deweese, Dickey, Dixon, Donnelly, Driggs, Eckley, Edwards, Eggleston, Ela, Thomas D.Eliot, Farnsworth, Ferriss,Ferry, Fields, French, Garfield, Getz, Glossbrenner, Goss, Gove, Griswold, Haughey, Hawkins, Higby, Hooper, Hopkins, Hotchkiss, Chester D. Hubbard, Richard D. Hubbard, Hulburd, Hunter, Ingersoll, Jenckes, Alexander H. Jones, Judd, Julian, Kelley, Kellogg, Kelsey, Ketcham, Kitchen, Koontz, Lash, George V. Lawrence, Wm. Lawrence, Lincoln, Loan, Loughridge, Lynch, Mallory, Marvin, McCarthy, McKee, Mercur, Miller, Moore, Moorhead, Morrell, Morrissey, Mullins, Myers, Newsham, Norris, O'Neill, Orth, Paine, Perham, Peters, Pettis, Phelps, Pike, Pile, Plants, Po number than three shall be apportioned, shall be located in the least populous portions of said Territories; and that at the next legislative elections thereafter in said Territories every qualified voter shall be entitled to three votes for member of council, and three votes for member of the house of representatives, with the privįlege of cumulating said votes upon any one or two of the candidates for either house respectively, it being the intent and meaning of this act to secure an equitable and just representation to minorities in said Territories in all cases where minority parties exceed in number two-fifths of the electoral body." Which was disagreed to-yeas 49, nays 116, as follow, (not voting, 57): YEAS-Messrs. Anderson, Archer, Axtell, Baker, Barnes, Barnum, Beck, Benjamin, Boyden, Boyer, Roderick R. Butler, Chanler, Cook, Deweese, Getz, Glossbrenner, Golladay, Gove, Grover, Hawkins, Heaton, Holman, Hotchkiss, Humphrey, Jenckes, Alexander H. Jones, Thomas L. Jones, Kerr, Knott, Lash, George V. Lawrence, Mallory, Marshall, McCormick, McCullough, Mungen, Newsham, Nicholson, Phelps, Ross, Spalding, Stone, Taber, Taffe, Van Trump, Ellihu B. Washburne, Stephen F. Wilson, Woodward, Young-49. NAYS-Messrs. Allison, James M. Ashley, Bailey, Baldwin, Banks, Beaman, Beatty, Benton, Blaine, Blair, Boutwell, Bowen, Broomall, Buckland, Buckley, Callis, Cary, Reader W. Clarke, Sidney Clarke, Clift, Cobb, Coburn, Corley, Cornell, Covode, Cullom, Dawes, Dickey, Dodge, Eggleston, Ela, Thomas D. Eliot, James T. Elliott, Farnsworth, Ferriss, Fields, French, Goss, Gravely, Harding, Haughey, Higby, Hill, Hopkins, |