The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1893-08-25
TIE FINANCIAL QUESTION The
ABSORBING TOPIC.
Made at Chicago
To THE CONGRESS OF THE UNITED
STATES:

To THE CONGRESS OF THE UNITED
STATES:
The existence of an alarming and
extraordinary business situation in
volving the welfare and prosperity of
all our people has constrained me to
call together in extra session the peo-
pies 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 mitigated and dangers
threatening the future may be avert
ed. Our unfortunate financial plight
is not the result of uutoward events,
nor of conditions related to our ma
tional resources, nor is it traceable to
any of the Affections which frequently
check national growth and prosperity.
With plenteous crops, with abundant
promise of remunerative production
and manufacture, with unusual invi-
tatiOns TO safe investment and with
satisfactory assurance to business
enterprise, suddenly financial dis
trust and fear have sprung up
on every side; numerous none
tary institutions have suspended,
because abundant assets were
not Immediately available to meet
surviving corporations and individu-
ais 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 supposed to be fixed
are fast becoming cOnjectural and loss
and failure have involved every
n hi
things are principally chargeable to
congressional legislation touching the
purchase and coinage of silver by the
general government. This legislation
is embodied in statute passed on the
18th day of July, 1890, which was the
elimination of much agitation on the
subject involved, and which may be
considered truce after long strug-
gle between the advocates of free sill
yer coinage and those intending to be
more conservative. Undoubtedly the
monthly purchases by the govern
ment of four million and five hundred
thousand ounces of silver, enforced
under statute, were regarded by those
interested in silver production as q
certain guaranty of its increase in
price.
The result has been entirely differ
ent for, Immediately following a
silver began to fall after the passage
of the Act, and has since reached the
lowest point ever known. This dis
appointing result has led to renewed
and persistent effort in the direction
of free silver coinage. Meanwhile,
not only are IT, evil effects of the
operation of tie present law con-
stantly accumai3sing, but the result
to which its execution must iuevit-
l. I'll 10 II L. 20 oil
who give the least heed TO financial
subjects. This law provides that in pay
ment for the four million and five hun
dred thousand ounces of silver bullion
which the secretary of the treasury
is commanded to purchase monthly,
there shall be issued treasury notes
redeemable on demand in gold or
silver coin at the discretion of the
secretary of the treasury, and that
notes may be reissued. 1t is, how
ever, declared in the act to be the said
established policy of the United States
tomaintain the two metals on 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 exer-
cising the discretion nominally
vested in him if by such action
the parity between gold and silver
may be disturbed. Manifestly q
refusal by the secretary to pay
these treasury notes in gold,
If demanded, would necessarily
result in their discredit and deprecia-
ton as obligations payable only in
silver, and would destroy the parity
between the two metals by establish
ing a discrimination in favor of gold.
Up to the 18th day of July, 1898, these
notes had been issued in payment of
silver bullion purchases TO the amount
of more than one hundred and forty
seven millions of dollars, while all
hut very small quantity of this bull
lion remains uncOined 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 first
day of May, 1892, and the 18th day of
July, 1898, the notes of this kind is
sued in payment for silver bullion
amounted to little more than Ssh
100000, and that during the same
period about $40, 600, 900 were paid by
the treasury in gold for the redemD-
ton of such notes.
Inc policy necessarily adopted of
paying these notes in gold has not
spared the gold reserve of 500 600, OOO
long ago set aside by the government
LOT the redemption of other notes, for
TINS rund has already been subjected
10 the payment of new obligations
amounting to about $50, 0OO, 900 on
account or silver purchases: and as q