The Republican. [volume] (Oakland, Md.) 1877-current, 1893-08-10
THE MESSAGE.
President Cleveland Sets Forth the
Pending Crisis.

WASHINGTON, August S.-Both
houses of Congress reassembled at
noon to-day, and after the usual
preliminarles the Presidents mes
sage was presented and read, as fol
lows:
To the Congress OF the United states:
The existence of an alarming and
extraordinary business situation in
volving welfare and prosperity
of all our people has constrained
me to call together in extra session
the peoples representatives IN Con-
gress, to the end that through a
wise and patriotic exercise of the
legislative duty with which they
solely are charged, present evils
may me mltigated and dangers
threatening the future may be
avcrted.
Our unfortunate financial plight
is not the result of untOward events
nor of conditions related to our
natural resources, nor is it tracea
bic to any of the affections which
frequently check national growth
and prosperity. With plenteous
crops, with abundant promis of re-
munerative production and manu-
facture, with unusual invitation to
safe investment and with satisfac
tory assuraL &C to business enter
prise, suddenly financial dlstrust
and fear have sprung up on every
side. Numerous moneyed lnstitu-
tons have suspended because album
dant 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 becoming
conf ectural and losses and failures
have invaded every branch of bust
ness. | believe these things are
principally charga5le to congress
sional legislation touching the pur-
chase and coinage Of silver by the
general government.
THE SILVER LAW OF 1890.
The legislation is embodied in a
statute passed on the l4th day OF
July, 1890, which was the culmina-
ton of much agitation on the SUB
iect involved, and which may be
considered Il truce after u long
struggle between the advocates OF
free silver coinage and those in
tending to be more conservative.
Undoubtedly monthly purchases
by the government of 100000
ounces of silver enforced under
that statute were regarded by those
interested in silver production as a
certain guaranty of its increase in
price. The result, however, has
been entirely different, for imme
diately following spasmodic anc
slight rise the price of silver began
to fall after the passage 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 direc
ton of free silver coinage.
Meanwhile not only are the evi
effects of the operation of the pres
cnt law constantly accumulating
but the result to which its eXecu
ton must inevitably lead is becom
ing palpable to all who give leas
heed to financial subjects.
This law provides that in pay
ment for the 1900, 200 ounces 0
silver bullion which the secretar
of the treasury is commanded t.
purchase monthly, there shall b
issued treasury notes redeemable OF
demand in gold or silver coin, a
the discretion of the secretary 0
the treasury, and that said note
may be reissued. 1t is, no,
ever, declared IN the act eth
established policy OF the Unite
States to maintain the two metals o
a parity with each other upon tn
present legal ratio or such ratio a
may be provided by law
This declaration so controls tn
action Of the secretary Of the treas
ury as to prevent his exercising tn
discretion nominalIy vested in him
if by such action the parity betwee
gold and silver may be disturbed
Nanifcstiy a refusal by the secrC
tHry to pay these treasury notes j
gold if demanded, would necessa
riv result in Their discrcdit and dc
probation as obligations payabl
only in silver, and would destro
the parity between the two metal
by establishing a discrimination il
favor Of gold.
Up to the 18th day Of July, 1893
u l-.... 800. ....