in 1875,
when the resumption act passed; but every measure taken in the
execution or enforcement of this act has tended to lighten these
losses and to reduce the premium on coin, so that now it is merely
nominal. The present condition of our trade, industry, and commerce,
hereafter more fully stated, our ample reserves, and the general
confidence inspired in our financial condition, seem to justify
the opinion that we are prepared to commence and maintain resumption
from and after the 1st day of January, A. D. 1879.

"The means and manner of doing this are left largely to the discretion
of the secretary, but, from the nature of the duty imposed, he must
restore coin and bullion, when withdrawn in the process of redemption,
either by the sale of bonds, or the use of the surplus revenue, or
of the notes redeemed from time to time.

"The power to sell any of the bonds described in the refunding act
continues after as well as before resumption. Thought it may not
be often used, it is essential to enable this department to meet
emergencies. By its exercise it is anticipated that the treasury
at any time can readily obtain coin to reinforce the reserve already
accumulated. United States notes must, however, be the chief means
under existing law with which the department must restore coin and
bullion when withdrawn in process of redemption. The notes, when
redeemed, must necessarily accumulate in the treasury until their
superior use and convenience for circulation enables the department
to exchange them at par for coin or bullion.

"The act of May 31, 1878, already referred to, provides that when
United States notes are redeemed or received in the treasury under
any law, from any source whatever, and shall belong to the United
States, they shall not be retired, canceled, or destroyed, but
shall be reissued and paid out again and kept in circulation.

"The power to reissue United States notes was conferred by section
3579, Revised Statutes, and was not limited by the resumption act.
As this, however, was questioned, Congress wisely removed the doubt.

"Notes redeemed are like other notes received into the treasury.
Payments of them can be made only in consequence of appropriations
made by law, or for the purchase of bullion, or for the refunding
of the public debt.

"The current receipts from revenue are sufficient to meet the
current expenditures as well as the accruing interest on the public
debt. Authority is