with the
financial operations of the Government, directly affecting the
business interests of the country. I congratulate Congress on the
successful execution of the resumption act. At the time fixed, and
in the manner contemplated by law, United States notes began to
be redeemed in coin. Since the 1st of January last they have been
promptly redeemed on presentation, and in all business transactions,
public and private, in all parts of the country, they are received and
paid out as the equivalent of coin. The demand upon the Treasury
for gold and silver in exchange for United States notes has been
comparatively small, and the voluntary deposit of coin and bullion
in exchange for notes has been very large. The excess of the precious
metals deposited or exchanged for United States notes over the amount
of United States notes redeemed is about $40,000,000.

The resumption of specie payments has been followed by a very great
revival of business. With a currency equivalent in value to the
money of the commercial world, we are enabled to enter upon an equal
competition with other nations in trade and production. The increasing
foreign demand for our manufactures and agricultural products has
caused a large balance of trade in our favor, which has been paid in
gold, from the 1st of July last to November 15, to the amount of about
$59,000,000. Since the resumption of specie payments there has also
been a marked and gratifying improvement of the public credit. The
bonds of the Government bearing only 4 per cent interest have been
sold at or above par, sufficient in amount to pay off all of the
national debt which was redeemable under present laws. The amount of
interest saved annually by the process of refunding the debt since
March 1, 1877, is $14,297,177. The bonds sold were largely in small
sums, and the number of our citizens now holding the public securities
is much greater than ever before. The amount of the national debt
which matures within less than two years is $792,121,700, of which
$500,000,000 bear interest at the rate of 5 per cent, and the balance
is in bonds bearing 6 per cent interest. It is believed that this part
of the public debt can be refunded by the issue of 4 per cent bonds,
and, by the reduction of interest which will thus be effected, about
$11,000,000 can be annually saved to the Treasury. To secure this
important reduction of interest to be paid by the United States
further legislation is required,