Alpena argus. [volume] (Alpena, Mich.) 1893-1909, 1893-08-16
Presidents Message.

VII Jne COuNcIluS VI Vic cAJI a
session of Congress, on the 18th,
President Cleveland issued the fol-
lowing message:
To the Congress of the United
States: The existence of the
alarming and extraordinary bust
ness situation, involving the well
fare and prosperity of all our peo-
pie, has constrained me to call to-
gether in extra session the peoples
representatives in Congress, to the
end that through a wise and pat
riotic exercise of the Legislative du-
ty with which they solely are
charged, present evils may be nit
igated and dangers threatening
the future may be averted.
Our unfortunate financial plight
is not the result of untoward events
nor of conditions related to our
natural resources, nor is it trace
able to any of the affections which
frequently check National growth
and prosperity. With plenteous
crops, with abundant promise of
remunerative production and man
ufacture, with unusual invitation
to safe investment, and with salts
factory assurance to business enter
prise, suddenly financial distrust
and fear have sprung up on every
side. Numerous moneyed institu-
tions have suspended because abund-
ant assets were not immediately
available to meet the demands of
frightened depositors. Surviving
corporations and individuals are
content to keep in hand the money
they are usually anxious to loan,
and those engaged in legitimate
business are surprised to find that
the securities they offer for loans,
though heretofore satisfactory, are
no longer accepted. Values sup
posed to be fixed are fast becom-
ing conjectural, and loss and fail
ure have invaded every branch of
business. | believe these things
are principally chargeable to Con-
gressional legislation touching the
purchase and coinage of silver by
the general government. n
Undoubtedly the monthly pur-
chases by the government of t.
100000 ounces of silver forced UNI
der that statute were regarded by
those interested in silver product
ton as IA certain guaranty of its i'll
crease in price. The result, how
ever, has been entirely different,
for Immediately following IA spas
mode and slight rise the price of
silver began to fall after the pas
sage of the act and has since reach
ed the lowest point ever known.
This law provides that in pay
ment for the 100000 ounces of
silver bullion which the Secretary
of the Treasury is commanded to
purchase monthly there shall be
issued treasury notes redeemable in
gold or silver coin, at the discretion
of the treasury, and that said notes
may be reissued. 1t is however,
declared in the act to be the estab-
lished policy of the United States
to maintain the two metals upon
parity with each other upon the
present legal ratio or such ratio as
may be provided by law. This dec
laration so controls the action of
the Secretary of the Treasury as to
prevent his exercising discretion
nominally vested in him, if by such
action the parity between gold and
silver may be disturbed. Manifest
ly refusal by the secretary to pay
these treasury notes i'll gold, if de-
would necessarily result
in their discredit and depreciation
as obligations payable only in sill
yer, and would destroy the parity
between the two metals by estab-
fishing discrimination i'm favor of
gold.
Up to the 18th day of July, 1893,
these notes had been issued i'll pay
ment of silver bullion purchased to
the amount of more than STAT, 000,-
900. While all but a very small
quantity of this bullion remains
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 payment for silver bullion
amounted to a little more than So4,
100000 and that during the same
period about $40,000,0O0 were paid
by the treasury in gold for the re-
demption of such notes. The pol
icy necessarily adopted of paying
these notes in gold has not spared
the gold reserve of 100000, 900
long ago set aside by the govern
ment for the redemption of other
notes, for this fund has already
been subjected to the payment Of
obligations amounting to about
Sl5O,OOO,0O0 on account of silver
purchases and has, as consequence,
for the first time since it's creation,
been encroached upon.
We have thus made the deple-