The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1893-08-19
THE MESSAGE.
Cleveland Addresses the
Extra Session.
He Urges the Prompt Repeal Of
the Sherman Act.
The Congress Should Act and Do
1t Quickly.
His Entire Message Devoted to the
Financial Question.
His Entire Message Devoted to the
Financial Question.
Industrial and Financial Evils Attributed
20 the silver Act Of 1S9O-why Conf
dence Is Lost-The Tariff Reform,
Though Fully Pledged, Must
Walt Awhile.


WASHINGTON, Aug. s-To the Congress of
the United States: The existence Of an alarm
Ing and extraordinary business situation, in
volving the welware and prosperity Of all our
people, has constrained me to call together in
extra session the peoples representatives in
congress- to the end that through a wise and
patriotic exercise Of the legislative oUty with
which they solely are charged, present evils
may be mitiyated and dangers threatening the
future may be averted.
Our unfortunate financial plight Is not the
result of untoward events, nor of conditions
traceable to any Of the afflictions which fire.
luently check ational growth and prosperity.
With plenteous crops with abundant promise
Of remunerativo production and manufacture,
with unusual invitation 70 safe investment,
and with satisfactory assurance to business
enterprise, suddenly financial distrust and fear
have sprung up on every side.
Numerous moneyed institutions have sus.
pended because abundant assets were not
Immediately available to meet the demo nds 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 Sur
prised TO find that the securities they offer for
loans, though heretofore satisfactory, are no
longer accepted. Values supposed 70 be axed,
arc fast becoming con1ectural, and loss and
failure have invaded every branch OF business.
THE SHERMAN ACT.
Ibelieve these things are principally charge.
able to congressional legislation touching the
purchase and coinage OF silver by the general
government
This legislation Is embodied in . statute
passed July H. 1890 which was the elimination
Of much agitation on the subject involved, and
which may be considered o truce after long
struggle, between the advocates Of free silver
coinage and those intending 70 be more conserv.
ativa
Undoubtedly the monthly purchases by the
government OF 4,500,0O0 ounces Of silver. en-.
forced under tho statute, were regarded by
those interested in silver production as Ger.
tain guarantee of its increase in price. Tho re.
suit however has been entirely different, for
Immediately following spasmodic 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. This disappointing
result has led to renewed and persistent effort
In the direction OF free silver coinage
Meanwhile not only are the evil effects OF the
operation OF the present low constantly &C.
eumulating but the result to which its execu-
ton must inevitably lead is becoming probable
to all who give the least heed to financial sub
jects.
This law provides that in payment for the
I,5OO, ,OOO ounces Of silver bullion which the Sec
rotary of the treasury is commanded to pur-
chase monthly, there shall be issued treasury
notes redeemable on demand in
GOLD OR SILVER COIN,
At the discretion of the secretary OF the treas
ury, and that said notes may be reissued. 1t
is, however, declared in the act to be 1.-The es-
tablished policy Of tho United States to main
tain the two metals on n 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 prevent his ex-
ercising the discretion nominally vested in
him. il by such action the parity between gold
and silver may be disturbed. Manifestly re-
fusal by the secretary to pay these treasury
notes in gold, II demanded would necessarily
result in theia discredit and depreciation as OBJ
legations payable only in silver, and would de-
gtroy the parity between the two metals by
establishing discrimination in favor Of gold.
Upto July 10, 1893, these notes had been is
sued in payment OF silver bullion purchased,
to the amount OF :l47 COZ, 600 While oil but a
very small quantity of this bullion remains un-
coined 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 May ]. is92, and July
10 1893. the notes OF this kind Issued in pay.
ment for silver bullion amounted to Q little
| more than soa. .oOoOOO, and that during the same
period about $4,000 Oo0 was paid by the treas
| ury In gold for the redemption Of such notes
| Tho policy necessarily adopted of paying
notes in gold has not spared the gold reserve OF
| elO0, 900 900, long ago set aside by the govern
| ment for the redemption of other notes, tor this
fund has already been subjected TO the paymen,
| Of new obligations amounting to about one hun
| dred and fifty million dollars, on account OF sill
yer purchases. and has, as conse Quence, fol
| the first time since its creation been encrUached
| upon.
| We have thus made the depletion of our golt
easy, and have tempted other and more appre
| ciative nations TO add 1t to their stock. Tha
| the opportunity we have offered has not Deer
| neglected is shown by the. large amounts o.
| gold which have been recently drawn from oul
treasury and exported to increase the financial
| strength OF foreign nations. The excess OF ex
| ports Of gold oyer its imports for the year end
ing June 30, 1893, amounted 10 more than sS7,
b0O,000
Between July 1. 1890, and July lb, 1893, tn
gold coin and bullion in our treasury decreased
more than ss2,Co200), while during th
same period the silver coin and bullion Il
the treasury increased more than tl47,
100000 Unless government bonds nre TO b
constantly issued and sold TO replenish our ex
hausted gold, only 10 be again exhausted, II I
apparent that the operation OF the silver pur
chase law now in force leads In the direction @
tho entire substitution OF silver for gold in tn
government treasury, and that this must be fo
lowed by the payment OF all government obi
cations in depreciatsd silver
Al this stage gold and silver must part CON
psny, and the government must iail IN its e.
| tabliBhed policy 70 MAINTAIN the TWO etals o
. parity with each other. Given over TO III
exclusive use of . currency greatly depreciate
according 10 the standard OF the commercia
world, We could no longer claim place anon
| nstions Of the first class, nor could our govern
ment claim . performance OF Ats obligation 8
Ter ~ such an obligation has been impose
upon II, to provide for the use OF tho people th
best and safest money.
IT, ~ many OF It's friends claim, silver ougt
70 occupy . larger place In our currency m
the currency Of the world through general Il
ternationsl cooperation and agreement, II
obvious that the United States will not be In
position 70 gain . hearing In favor OF such Q
arrangement so long Ss we are willing TO col
tinue our attempt tes accomplish ME resu
sipgle-handed.
The knowledge In business circles among O,
; own people that our government can not NAL
its dat equivalent 70 tttrinsic value, nor kel
inferior money on . pa !ty with superior none
oy It's own Independent efforts, bus resulted
such lack Of confidence ~ home and In Il
stability Of currency values. that capital 3
fuses It's aid 70 new enterprises, while millisI
are actually Withdrawn from the channels
trade and commerce 10 become idle and unpr
ducuve In the hands Of timid owners.
FOREIGN ISvEsToks,
Equally sisst pet on'y dscltas 70 pnsehsll