uary, 1877. We should then have
quotations at real values, not fictitious ones. Gold would no longer be
at a premium, but currency at a discount. A healthy reaction would set
in at once, and with it a desire to make the currency equal to what it
purports to be. The merchants, manufacturers, and tradesmen of every
calling could do business on a fair margin of profit, the money to be
received having an unvarying value. Laborers and all classes who work
for stipulated pay or salary would receive more for their income,
because extra profits would no longer be charged by the capitalists to
compensate for the risk of a downward fluctuation in the value of the
currency.

Second. That the Secretary of the Treasury be authorized to redeem, say,
not to exceed $2,000,000 monthly of legal-tender notes, by issuing in
their stead a long bond, bearing interest at the rate of 3.65 per cent
per annum, of denominations ranging from $50 up to $1,000 each. This
would in time reduce the legal-tender notes to a volume that could be
kept afloat without demanding redemption in large sums suddenly.

Third. That additional power be given to the Secretary of the Treasury
to accumulate gold for final redemption, either by increasing revenue,
curtailing expenses, or both (it is preferable to do both); and I
recommend that reduction of expenditures be made wherever it can be done
without impairing Government obligations or crippling the due execution
thereof. One measure for increasing the revenue--and the only one I
think of--is the restoration of the duty on tea and coffee. These duties
would add probably $18,000,000 to the present amount received from
imports, and would in no way increase the prices paid for those articles
by the consumers.

These articles are the products of countries collecting revenue from
exports, and as we, the largest consumers, reduce the duties they
proportionately increase them. With this addition to the revenue, many
duties now collected, and which give but an insignificant return for the
cost of collection, might be remitted, and to the direct advantage of
consumers at home.

I would mention those articles which enter into manufactures of all
sorts. All duty paid upon such articles goes directly to the cost of the
article when manufactured here, and must be paid for by the consumers.
These duties not only come from the consumers at home, but act as a
protection to foreign manufacturers of the same completed article