The Oskaloosa herald., 1893-08-10

The existence of an alarming and ex.
i traordinary business situation, inyolv.
| ing the welfare and prosperity of al
our people, has constrained me to cal
together in extra session the peoples
representatives in congress, to the end
that, through wise and patriotic exer
else of the legislative duty with which
they solely are charged, present evils
may be mitigated and dangers threaten
ing the future may be averted.
The Unfortunate Financial Plight.
Our unfortunate financial plight is
not the result of untoward events mol
of conditions related to our natural
resources; nor is it traceable to any Of
the Affections which frequently checb
national growth and prosperity. With
plenteous crops, with abundant prom
Use of remunerative production and
manufacture, with unusual invitation
to safe investment and with satisfac
tory assurance to business enter
prise, suddenly financial distrust
and fear have sprung up on every
side. Numerous moneyed institutions
have suspended because abundant
assets were not Immediately available
to meet the demands of frightened de
positors. Surviving corporations ant
individuals are content to keep in hanC
the money they are usually anxious tx
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 supposed to be fixeC
are fast becoming conjectural, and los
and failure have invaded every branch
of business.
Attributed to Congressional Legislation
believe these things are principally
chargeable to congressional Legislation
touching the purchase and coinage O
silver by the general government Thi'
legislation is embodied in a statut,
passed on the 14th day of July, 1890
which was the elimination of mucl
agitation on the subject involved, anC
which may be considered a truce, aftel
a long struggle, between the advocate
of free silver coinage aud those intend
ing to be more conservative.
Silver Depreciation.
Undoubtedly the monthly purchases
by the government of 4,500, 900 ounce
of silver, enforced under that statute
were regarded by those interested il
silver production as a certain guaranty
of its increase in price. The result
however, has been entirely different
for, Immediately following a spasmodi
and slight rise, the price of silver begaI
to fall after the passage of the act ant
has since reached the lowest point eve
known. This disappointing result ha
led to renewed and persistent effort il
the direction of free silver coinage.
Future Results.
| Meanwhile, not only are the evil eff
fects of the operation of the presen
law constantly accumulating, but th'
result to which it's execution must in
evitably lead is becoming palpable t.
all who give the least heed to financia
subjects. This law provides that il
payment for the 4, 500, 900 ounces of sill
yer bullion, which the secretary of tn,
treasury is commanded to purchas
monthly, there shall be issued treasur,
notes redeemable on demand in gold O
silver coin, at the discretion of the sec
retary of the treasury, and that salt
notes may be reissued.
Parity Between Gold and Silver.
1t is, however, declared in the act t,
be ''the established policy of the Unitet
States to maintain the two metals on
parity with each other upon the presen
legal ratio, or such ratio as may be pro
vided by law" This declaration S.
controls the action of the secretary o
the treasury as to prevent his exercis
ing the discretion nominally vested il
him, if by such action the parity be
tween gold and silver may be disturbed
Manifestly refusal by the secretar.
to pay these treasury notes in gold, i
demanded, would necessarily result il
their discredit and depreciation as OBJ
legations payable only in silver, anC
would destroy the parity between the
two metals by establishing discrimi
nation In favor of gold.
Rede emptIOn In Gold.
Up to the fifteenth day of July, 1893
these notes had been issued in paymen
of silver bullion purchases, to tn,
amount of more than one hundred ant
forty-seven millions of dollars. While al
but very small quantity of this bullion
remains uncoined and without useful
ness in the treasury, many of the notes
/ given in its purchase have been paid in
gold. This is illustrated by the state
ment that between the first day of May
1892, and the fifteenth day of July, 1898
| the notes of this kind issued in pay
| ment for silver bullion, amounted to &
| little more than fifty-four millions o.
dollars, and that during the same
| period about forty-nine millions of dol
lars were paid by the trca ury in golt
| for the redemption of such notes.
Gold Depletion.
The policy necessarily adopted of pay
ing these notes in gold has not spared
the gold reserve of 500, 600, COO long age
| set aside by the government for the re
demption of other notes, for this func
has already been subjected to the pay
ment of new obligations amounting tc
about $3.50, 900, 900 on account of silver
| purchases, and has, as d consequence
for the first time since its creation
been encroached upon.
We have thus made the depletion OF
our gold easy and have tempted othel
and more appreciative nations to add
it to their stock. That the opportunity
we have offered has not been neglected
| is shown by the large amounts of gold
which have been reccutiy drawn from
our treasury and exported to increase
the financial strength Of foreign ma.
tions. The excess % CTn0rts az gold
over its imports for TIA. y@ar - i q
June 80, 1898, amounted to niore ..:ar
SS7, 500, 900.
Between the 1st day of July, 1890,
and the 18th day of July, 1898, the gold
coin and bullion in our treasury de-
creased more than $130, ,OO0, 900, while
during the same period the silver coin
and bullion in the treasury increased
more than S147, ,O00, 900. Unless govern
ment bonds are to be constantly issued
and sold to replenish our exhausted gold,
only to be again exhausted, it is appar-
ent 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 government
treasury, and that this must be
followed by the payment of all govern
ment obligations in deprecated silver.
Must Part Company.
At this stage gold and silver must
part company and the government must
fail in its established policy to main
tain the two metals on parity with
each other. Given over to the exclusive
use of currency greatly deprecated
according to the standard of the COM
mercial world, we could no longer
claim place among nations of the first
class, nor could our government claim
a performance of its obligation, so far
as such an obligation has been imposed
upon it, to provide for the use of the
people the best and safest money.
The Fiat Question.
If, as many of its friends claim, sil-
yer ought to occupy larger place in
our currency and the currency of the
world through general international
cooperation and agreement, it is obvi-
Gus that the United States will not be
In q position to gain hearing in favor
of such an arrangement so long as we
are willing to continue our attempt to
accomplish the result single handed.
The I<noyyledpe in businesa cfrclaa