on at home
will, in my judgment, soon bring about practical resumption, and will
add the coin of the country to the circulating medium, thus securing
a healthy "inflation" of a sound currency, to the great advantage of
every legitimate business interest.

The act to provide for the resumption of specie payments authorizes
the Secretary of the Treasury to issue bonds of either of the
descriptions named in the act of Congress approved July 14, 1870,
entitled "An act to authorize the refunding of the national debt," for
not less than par in gold. With the present value of the 4-1/2 per cent
bonds in the markets of the world, they could be exchanged at par for
gold, thus strengthening the Treasury to meet final resumption and to
keep the excess of coin over demand, pending its permanent use as a
circulating medium, at home. All that would be further required would be
to reduce the volume of legal-tender notes in circulation. To accomplish
this I would suggest an act authorizing the Secretary of the Treasury to
issue 4 per cent bonds, with forty years to run before maturity, to be
exchanged for legal-tender notes whenever presented in sums of $50 or
any multiple thereof, the whole amount of such bonds, however, not to
exceed $150,000,000. To increase the home demand for such bonds I would
recommend that they be available for deposit in the United States
Treasury for banking purposes under the various provisions of law
relating to national banks.

I would suggest further that national banks be required to retain a
certain percentage of the coin interest received by them from the bonds
deposited with the Treasury to secure their circulation.

I would also recommend the repeal of the third section of the joint
resolution "for the issue of silver coin," approved July 22, 1876,
limiting the subsidiary coin and fractional currency to $50,000,000.

I am satisfied that if Congress will enact some such law as will
accomplish the end suggested they will give a relief to the country
instant in its effects, and for which they will receive the gratitude of
the whole people.

U.S. GRANT.

EXECUTIVE MANSION, _February 9, 1877_.

_To the Senate and House of Representatives_:

The accompanying memorial is transmitted to Congress at the request of a
committee, composed of many distinguished citizens of New York, recently
appointed to cooperate with a generous body of French citizens who
design to erect in the harbor of New York