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State of the Union Addresses of Ulysses S. Grant



The addresses are separated by three asterisks: ***

Dates of addresses by Ulysses S. Grant in this eBook:

  December 6, 1869
  December 5, 1870
  December 4, 1871
  December 2, 1872
  December 1, 1873
  December 7, 1874
  December 7, 1875
  December 5, 1876



***

State of the Union Address
Ulysses S. Grant
December 6, 1869

To the Senate and House of Representatives:

In coming before you for the first time as Chief Magistrate of this great
nation, it is with gratitude to the Giver of All Good for the many benefits
we enjoy. We are blessed with peace at home, and are without entangling
alliances abroad to forebode trouble; with a territory unsurpassed in
fertility, of an area equal to the abundant support of 500,000,000 people,
and abounding in every variety of useful mineral in quantity sufficient to
supply the world for generations; with exuberant crops; with a variety of
climate adapted to the production of every species of earth's riches and
suited to the habits, tastes, and requirements of every living thing; with
a population of 40,000,000 free people, all speaking one language; with
facilities for every mortal to acquire an education; with institutions
closing to none the avenues to fame or any blessing of fortune that may be
coveted; with freedom of the pulpit, the press, and the school; with a
revenue flowing into the National Treasury beyond the requirements of the
Government. Happily, harmony is being rapidly restored within our own
borders. Manufactures hitherto unknown in our country are springing up in
all sections, producing a degree of national independence unequaled by that
of any other power.

These blessings and countless others are intrusted to your care and mine
for safe-keeping for the brief period of our tenure of office. In a short
time we must, each of us, return to the ranks of the people, who have
conferred upon us our honors, and account to them for our stewardship. I
earnestly desire that neither you nor I may be condemned by a free and
enlightened constituency nor by our own consciences.

Emerging from a rebellion of gigantic magnitude, aided, as it was, by the
sympathies and assistance of nations with which we were at peace, eleven
States of the Union were, four years ago, left without legal State
governments. A national debt had been contracted; American commerce was
almost driven from the seas; the industry of one-half of the country had
been taken from the control of the capitalist and placed where all labor
rightfully belongs--in the keeping of the laborer. The work of restoring
State governments loyal to the Union, of protecting and fostering free
labor, and providing means for paying the interest on the public debt has
received ample attention from Congress. Although your efforts have not met
with the success in all particulars that might have been desired, yet on
the whole they have been more successful than could have been reasonably
anticipated.

Seven States which passed ordinances of secession have been fully restored
to their places in the Union. The eighth (Georgia) held an election at
which she ratified her constitution, republican in form, elected a
governor, Members of Congress, a State legislature, and all other officers
required. The governor was duly installed, and the legislature met and
performed all the acts then required of them by the reconstruction acts of
Congress. Subsequently, however, in violation of the constitution which
they had just ratified (as since decided by the supreme court of the
State), they unseated the  members of the legislature and admitted
to seats some members who are disqualified by the third clause of the
fourteenth amendment to the Constitution--an article which they themselves
had contributed to ratify. Under these circumstances I would submit to you
whether it would not be wise, without delay, to enact a law authorizing the
governor of Georgia to convene the members originally elected to the
legislature, requiring each member to take the oath prescribed by the
reconstruction acts, and none to be admitted who are ineligible under the
third clause of the fourteenth amendment.

The freedmen, under the protection which they have received, are making
rapid progress in learning, and no complaints are heard of lack of industry
on their part where they receive fair remuneration for their labor. The
means provided for paying the interest on the public debt, with all other
expenses of Government, are more than ample. The loss of our commerce is
the only result of the late rebellion which has not received sufficient
attention from you. To this subject I call your earnest attention. I will
not now suggest plans by which this object may be effected, but will, if
necessary, make it the subject of a special message during the session of
Congress.

At the March term Congress by joint resolution authorized the Executive to
order elections in the States of Virginia, Mississippi, and Texas, to
submit to them the constitutions which each had previously, in convention,
framed, and submit the constitutions, either entire or in separate parts,
to be voted upon, at the discretion of the Executive. Under this authority
elections were called. In Virginia the election took place on the 6th of
July, 1869. The governor and lieutenant-governor elected have been
installed. The legislature met and did all required by this resolution and
by all the reconstruction acts of Congress, and abstained from all doubtful
authority. I recommend that her Senators and Representatives be promptly
admitted to their seats, and that the State be fully restored to its place
in the family of States. Elections were called in Mississippi and Texas, to
commence on the 30th of November, 1869, and to last two days in Mississippi
and four days in Texas. The elections have taken place, but the result is
not known. It is to be hoped that the acts of the legislatures of these
States, when they meet, will be such as to receive your approval, and thus
close the work of reconstruction.

Among the evils growing out of the rebellion, and not yet referred to, is
that of an irredeemable currency. It is an evil which I hope will receive
your most earnest attention. It is a duty, and one of the highest duties,
of Government to secure to the citizen a medium of exchange of fixed,
unvarying value. This implies a return to a specie basis, and no substitute
for it can be devised. It should be commenced now and reached at the
earliest practicable moment consistent with a fair regard to the interests
of the debtor class. Immediate resumption, if practicable, would not be
desirable. It would compel the debtor class to pay, beyond their contracts,
the premium on gold at the date of their purchase and would bring
bankruptcy and ruin to thousands. Fluctuation, however, in the paper value
of the measure of all values (gold) is detrimental to the interests of
trade. It makes the man of business an involuntary gambler, for in all
sales where future payment is to be made both parties speculate as to what
will be the value of the currency to be paid and received. I earnestly
recommend to you, then, such legislation as will insure a gradual return to
specie payments and put an immediate stop to fluctuations in the value of
currency.

The methods to secure the former of these results are as numerous as are
the speculators on political economy. To secure the latter I see but one
way, and that is to authorize the Treasury to redeem its own paper, at a
fixed price, whenever presented, and to withhold from circulation all
currency so redeemed until sold again for gold.

The vast resources of the nation, both developed and undeveloped, ought to
make our credit the best on earth. With a less burden of taxation than the
citizen has endured for six years past, the entire public debt could be
paid in ten years. But it is not desirable that the people should be taxed
to pay it in that time. Year by year the ability to pay increases in a
rapid ratio. But the burden of interest ought to be reduced as rapidly as
can be done without the violation of contract. The public debt is
represented in great part by bonds having from five to twenty and from ten
to forty years to run, bearing interest at the rate of 6 per cent and 5 per
cent, respectively. It is optional with the Government to pay these bonds
at any period after the expiration of the least time mentioned upon their
face. The time has already expired when a great part of them may be taken
up, and is rapidly approaching when all may be. It is believed that all
which are now due may be replaced by bonds bearing a rate of interest not
exceeding 4 1/2 per cent, and as rapidly as the remainder become due that
they may be replaced in the same way. To accomplish this it may be
necessary to authorize the interest to be paid at either of three or four
of the money centers of Europe, or by any assistant treasurer of the United
States, at the option of the holder of the bond. I suggest this subject for
the consideration of Congress, and also, simultaneously with this, the
propriety of redeeming our currency, as before suggested, at its market
value at the time the law goes into effect, increasing the rate at which
currency shall be bought and sold from day to day or week to week, at the
same rate of interest as Government pays upon its bonds.

The subjects of tariff and internal taxation will necessarily receive your
attention. The revenues of the country are greater than the requirements,
and may with safety be reduced. But as the funding of the debt in a 4 or a
4 1/2 per cent loan would reduce annual current expenses largely, thus,
after funding, justifying a greater reduction of taxation than would be now
expedient, I suggest postponement of this question until the next meeting
of Congress.

It may be advisable to modify taxation and tariff in instances where unjust
or burdensome discriminations are made by the present laws, but a general
revision of the laws regulating this subject I recommend the postponement
of for the present. I also suggest the renewal of the tax on incomes, but
at a reduced rate, say of 3 per cent, and this tax to expire in three
years.

With the funding of the national debt, as here suggested, I feel safe in
saying that taxes and the revenue from imports may be reduced safely from
sixty to eighty millions per annum at once, and may be still further
reduced from year to year, as the resources of the country are developed.

The report of the Secretary of the Treasury shows the receipts of the
Government for the fiscal year ending June 30, 1869, to be $370,943,747,
and the expenditures, including interest, bounties, etc., to be
$321,490,597. The estimates for the ensuing year are more favorable to the
Government, and will no doubt show a much larger decrease of the public
debt.

The receipts in the Treasury beyond expenditures have exceeded the amount
necessary to place to the credit of the sinking fund, as provided by law.
To lock up the surplus in the Treasury and withhold it from circulation
would lead to such a contraction of the currency as to <DW36> trade and
seriously affect the prosperity of the country. Under these circumstances
the Secretary of the Treasury and myself heartily concurred in the
propriety of using all the surplus currency in the Treasury in the purchase
of Government bonds, thus reducing the interest-bearing indebtedness of the
country, and of submitting to Congress the question of the disposition to
be made of the bonds so purchased. The bonds now held by the Treasury
amount to about seventy-five millions, including those belonging to the
sinking fund. I recommend that the whole be placed to the credit of the
sinking fund.

Your attention is respectfully invited to the recommendations of the
Secretary of the Treasury for the creation of the office of commissioner of
customs revenue; for the increase of salaries to certain classes of
officials; the substitution of increased national-bank circulation to
replace the outstanding 3 per cent certificates; and most especially to his
recommendation for the repeal of laws allowing shares of fines, penalties,
forfeitures, etc., to officers of the Government or to informers.

The office of Commissioner of Internal Revenue is one of the most arduous
and responsible under the Government. It falls but little, if any, short of
a Cabinet position in its importance and responsibilities. I would ask for
it, therefore, such legislation as in your judgment