and thoughtful suggestions upon this
subject which appear in the Secretary's report.

The objections which he urges against the acceptance of any other
securities than the obligations of the Government itself as a foundation
for national-bank circulation seem to me insuperable.

For averting the threatened contraction two courses have been suggested,
either of which is probably feasible. One is the issuance of new bonds,
having many years to run, bearing a low rate of interest, and
exchangeable upon specified terms for those now outstanding. The other
course, which commends itself to my own judgment as the better, is the
enactment of a law repealing the tax on circulation and permitting the
banks to issue notes for an amount equal to 90 per cent of the market
value instead of, as now, the face value of their deposited bonds. I
agree with the Secretary in the belief that the adoption of this plan
would afford the necessary relief.

The trade dollar was coined for the purpose of traffic in countries
where silver passed at its value as ascertained by its weight and
fineness. It never had a legal-tender quality. Large numbers of these
coins entered, however, into the volume of our currency. By common
consent their circulation in domestic trade has now ceased, and they
have thus become a disturbing element. They should not be longer
permitted to embarrass our currency system. I recommend that provision
be made for their reception by the Treasury and the mints, as bullion,
at a small percentage above the current market price of silver of like
fineness.

The Secretary of the Treasury advises a consolidation of certain of the
customs districts of the country, and suggests that the President be
vested with such power in relation thereto as is now given him in
respect to collectors of internal revenue by section 3141 of the Revised
Statutes. The statistics upon this subject which are contained in his
report furnish of themselves a strong argument in defense of his views.

At the adjournment of Congress the number of internal-revenue collection
districts was 126. By Executive order dated June 25, 1883, I directed
that certain of these districts be consolidated. The result has been a
reduction of one-third their number, which at present is but 83.

From the report of the Secretary of War it will be seen that in only a
single instance has there been any disturbance of the quiet condition of
our Indian tribes. A raid from Mexi