The Bessemer indicator., 1893-08-12
HE DEMANDS REPEAL.
THE PRESIDENTS MESSAGE.
spon.ibi. for tho Present Financial
Troubles and Urges Its Re-
peal without Suggest
ing Any Substitute.

strained me TO call together In extra session
the peoples Representatives In Congress, to
the end that, through wise and patriotic
exercise OF the Legislative duty with which
they solely are charged, present evils may be
mltlgated and dangers threatening the future
may be ayerted-
Our unfortunate financial plight Is not the
result of untoward events, nor OF conditions
related TO our natural resources; nor IS it
traceablc to any of the Affections which fire.
Quently check national growth and prosper
lty. With plcnteons crops, with abundant
promise OF rcmunerntivc production and
manufacture, with unusual Invitation to safe
investment md with satisfactory assurance to
business enterprise, suddenly financial dis
trust and fear have sprung up on every side.
Numerous moncyed institutions have suspend
ed because abundant assets were not lmmedi-
ately available 10 meet the demands of fright
cncd deposltors. surviving corporations and
Individual, are too content to keep In hand
the money they are usually anxious To loan,
aud those engaged In legitimate business are
surprised 10 find that the securities they offer
for loans, though heretofore satisfactory, are
no longer accepted. Values supposed to be
liked arr fast becoming conicctural, and loss
and failure have Invaded every branch Of
business
al believe these things are principally charE-
cable to congressional legislation touching tho
purchase and coinage of silver by the general
government This legislation is embodied in
4 statute passed on the iith day of July,
1880, which was the culminatlon Of much
agitation on the subject involved, and which
may be considered truce after the long
struggle between the advocates OF free silver
soryative.
Undoubtedly the monthly purchases by
the government OF 10000 ounces Of silver,
forced under that statute, were regarded by
those Interested 80 silver production as a Ger.
tain guaranty of IT, Increase in price. The
result, however, has been entirely different,
for Immediately following a suasmodc and
slight rise the price of silver began to fall
after the passage of the act and has since
reached the lowest point ever known.
"'riiis disappointing result has led TO re-
ncwed and persistent efforts In the direction
OF free silver coinage. Meanwhile, not only
are the evil effects of the operation of the
present law constantly aceumulattng, but the
result to which lis execution must inevitably
lead Is becoming palpable to all who give the
least heed to financial subjects,
"Tbl, law provides tha, In payment for the
$500 COZ ounces of silver bullion which the
secretary OF the treasury t. commanded TO
purchase monthly, there shall be issued
treasury notes rrdremablc on demand in gold
or silver coin ut the discretion of the secrc-
tary OF the treasury, and that said notes may
he reissucd II Is however declared IN the
net to be the established policy OF the United
states to maintain the two metals upon n
parity with each other upon the present legal
ratio or such ratio MS may be provided by
law
This declaration so controls the action of
the secretary of The treasury rs to prevent his
exercising the discretion nomlnally vested in
him, II b7 such action the parity between
gold and SILVER may be disturbed Manifestly
refusal by the secretary 10 pay these treas
ury nolcs la gold, X demanded. would neccs-
sarily result IN their dlscredt and deprecia-
ton as obligations payable only in silver, and
would destroy the parity between the two
metals by establishing a discrimination in
fayor Of gold.
Il p TO the 18th day of July | s93, these notes
bad been Issued In payment OF silver bullion
purchased 10 tue amount of more than sl4T,-
0l0OOO. White III bat very small quantity
Of this bullion remains unc1lned and without
u-eiulnr-s in lha treasury, many nf the notes
given In IT, purchase have been paid In gold.
This Is illustrated 10y the statement that be-
tween thr Ii DAY ut May, ls92, and the 18th
day Of july lssci, the notes of this kind Is
sued in payment Tor silver bullion amounted
to a little more than So, 900 GD0, and that dur
ing the same period about i9,OOl, 900 were
paid by the treasury in gold for the redemp-
tlon Of such notes.
"The policy necessarily adopted OF paying
these notes In gold has not spared the gold
reserve Of O0,G0), 900 long ago set aside by
The government for the redemption of other
notes, for this fund has already been subject
ed TO the payment Of new obligations amount
ing to about $50, 100000 on account Of silver
purchases, and has as consequence for the
first time since lts creation, been encroached
upon.
1--WE have thus made the depletion of our
gold easy. and have tempted other and more
npprcrIatiye nations to add It to their stock
That tho opportunity we have offered has not
been neglected Is shown by the large amounts
OF gold which have been recently drawn from
our treasury and exported to Increase the
financial strength Of foreign nations. The ex-
cess OF exports Of gold over its imports for
the year rndiug auuc 10, 1893, amounted to
more than So OJ0.000. Between the lst day
Of July i-9O, and the 18th day OF July, 1898,
the gold coin aud bullion In our treasury de
creased more than sl32, OOOOOO, while during
| tho same period the silver coin and bullion in
the treasury increased more than sli7, 600 900.
! Unless government bonds are to be constantly
issued and sold TO replenlsh our exhausted
| god, only to be again Exhausted, It is appar-
| cnt that the operation Of the silver purchase
law now in force leads in the direction of the
entire substitution Of silver for the gold In the
treasury and that this must be followed by
the payment Of all government obligations In
| deprecated silver.
AT this stage gold and silver must part
company and the government must fail in
| It's established policy to maintain the two
| metals on Z parity with each other. Given
over TO The exclusive Use OF a currency great
! ly deprecated according to the standard Of
the commercial world, We could no longer
| claim place among the nations OF the first
class, nor could our government claim per-
formancc of its Obligation so far as such an
| obligation has been imposed upon # to pro-
| vide for the use Of the people, the best and
| safest money. If, as many Of It's friends
| claim, silver ought 10 occupy n larger place
in our currency and the currency OF the world
through general international cooperation
ahu aHFceIheht' II Il obvious thht the United
| States Will not be in position to gain a
| hearing In favor Of such nn arrangement so
| long as we arc willing to continue our at
tempt to accomplish the result single
| banded.
"The knowledge in The business circles
among our own people that our government
canuot make its fiat equivalent to intrinsic
value, nor keep inferior money on a parity
with superior money by Its own independent
efforts, has resulted in such n lack of conf
dcnce at home in the stability of currency
values that capital refuses It's aid to new en-