Mexico weekly ledger., 1893-08-10
PRESIDENTS MESSAGE
Read to the Extra Session oil
Congress.
UNCONDITIONAL REPEAL URGED
Present Depression C~hargeabie Directly
to Congregational Legislation. Which
should Promptly he Removed Every
Days Delay Increases the Suffering.

WASHINGTON, Aug. S.-Both houses oil
congress convened shortly after the moor
hour, and with but few preliminaries
the anx.ously expected message of Pres
idsnt Cleveland was received and read.
To the Congress of the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together in eN
ira session the peoples representatives in
congress, to the end hat through a wise
and patriotic exercise of the Legislative
duty with which they solely are charged.
present evils may be mitigated and dan
gers threatening the future nay be
aveSted.
Our unfortunate financial plight is not
the result of untoward events, nor of con-
ditions related to our natural resources;
nor is it traceable to any of the Affections
which frequently check national growth
and prosperity.
With plenteous crops. with abundant
promise OF remuuerative production and
manufacture, with unusual invitation to
safe investment, and with satisfactory as
surance TO business enterprise. suddenly
financial distrust and fear have sprung up
on every side. Numerous moneyed insti-
tutions have suspended because abundant
assets were not Immediately available to
meet the demands of frightened deposit
ors. Surviving corporations and individ-
uals are content to keep in hand the
money they are usually anxious to loan,
aud those engaged in legitimate business
are surprised to find that the securities
they offer for loans, though heretofore
satisfactory. are nc longer accepted.
Values supposed to be fixed are fast be-
coming con%jectural, and loss and failure
have invaded every branch of business.
CharEeabls to the Sherman Law.
/ believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of sill
yer by the general government.
This legislation is embodied in a statute
passed on the 14th day of July, 1890,
which was the elimination of much agi-
tation On the subject involved, and which
nay be considered a truce, after a long
struggle, between the advocates of free
silver coinage and those intending to be
more conservative.
Undoubtedly the monthly purchases by
the government of 1850, 900 ounces of sill.
yer enforced under that statute were re-
garded by those interested in silver pro-
duction as q certain guaranty of its in
crease in price. The result, however, has
been entirely different, for Immediately
following a spasmodic and slight raise,
the price Of silver began to fall after the
passing of the act and has since reached
the lowest point ever known. This disap-
pointing result has led to renewed and
persistent effort in the direction of free
silver coinage.
Evil Effects of the Present Law.
Meanwhile, not only are the evil effects
of the operation of the present law con.
stantly a~ccumulating, but the result to
which its execution must inevitably lead
Is becoming palpable to all who give the
least heed to financial subjects.
This law provides that in payment for
the 4 ,500, 900 ounces of silver bullion which
the secretary of the treasury is com
manded to purchase monthly, there shall
be issued treasury notes redeemable on
demand in gold or silver coin. at the dis,
erection of the secretary of the treasury,
and that said notes may be re-issued. 1t
is, however. declared in the act to be 'the
established policy of the United States tc
maintain the two metals on a parity with
each other upon the present legal ratio or
such ratio as may be provided by law"
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising the discretion nomi-
nally vested in him, if by such action the
parity between gold and silver may be dis
turbed. Manifestly a refusal by the secre.
tary to pay these treasury notes in gold, il
demanded, would necessarily result in
their discredit and depreciation as obliga.
tons payable only in silver and would de.
stroy the parity between the two metals
by establishing a discrimination in fayo,
of gold.
Useless Silver In the Treasury.
Up to the 18th day of July, 1893, these
notes had been issued in payment of silver
bullion purchases to the amount of more
than 81, OOO, 900. While all but a very small
quantity of this bullion remains uncoined
and without usefulness in the treasury,
many of the notes given in its purchase
have been paid in gold. This Is illustrated
by the statement that between the LIST day
of May, 1892, and the 18th day of July
1893, the notes of this kind issued in paw.
ment for silver bullion amounted to a
little over $54, 0OO, 900, and that during thu
same period about $40, OO0, 600 were paid b,
the treasury in gold for the redemption Of
such notes The policy necessarily adopt
cd in paying these notes in gold has no
spared the gold reserve of slOO, 900, 900 Ions
ago set aside by the government for the
redemption of other notes. for this fund
has already been subjected to the payment
of new obligations amounting to about
$50 100000 oil account of silver purchases
n BIAS, as a consequence, for the first
time since its creation. been encroached on
We have thus made the depletion of oul
god easy, and ave tempted other and
more a~ppreciative nations to add it tc
their took. That the opportunity w
have offered has not been neglected ha:
been shown by the large amounts of golt
which have been recently drawn from oul
treasury and exported to increase the
financial strength of foreign nations. The
excess Of exports of gold over it's import:
for the year ending June 30, 1893
amounted to more than So, 500, 900.
Danger to the Gold Reserve.
Between the 1st day of July, 1890, and
the 18th day of July, 1893, the gold coir
and bullion in our treasury decreased
more han sI32. 900, 600, while during tbs
same period the silver coin and bullion In
the treasury increased more than $147, 90,
800. Unless government bonds are to bt
constantly Is ued and sold to ~replenist
our exhausted gold. only to be again ex
hausted, it Is apparent that the operation
Of the silver purchase law now in forct