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.