Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1893-08-16

The Presidents Message Urging the Re-
peal Of the Silver Law

read to-day. 1t deals entirely With the
financial situation and urges the imme-
diate repeal of the Sherman silver pur-
chase act. 1t is as follows:
To THE CONGRESS OF THE UNITED STATES: The
existence of an alarming and extraordinary bust
ness situation, involving the welfare and pros
perity of all our people, has constrained me to
call together in extra session the peoples repre-
sentatives i'll Congress to the end that through
wise and patriotic exercise of the legislative
duty with which they solely are charged: pres
ent evils may be mitigated and dangers threat
ening the future may be averted.
Our unfortunate financial plight is not the re-
suit OF untoward events nor of conditions re-
lated TO our natural resources; nor is it trace
able to any of the Affections which frequently
check national growth and prosperity. WIN
of remunerative production and manufact-
ure, with unusual invitation to safe
investment and with satisfactory assurance to
business enterprise, suddenly financial dlstrust
and fear have sprung up on every size. Nu,
merous moneyed institutions have suspended
because abundant assets were not Immediately
available to meet the demands of fright
ened depostors; 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 supposed to be fixed
fast becoming conjectural, and loss and
failure have invaded every branch of business.
| believe 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 the 14th day of July, $780,
which was the elimination of much agitation
on the subject involved, and which may be con-
sidereo truce, after the long struggle, between
the advocates of free silver coinage and those in
tending to be more conservative.
Undoubtedly the monthly purchases by the
government of 4, 100000 ounces OF silver, forced
under that statute, were regarded by those in
terested in silver production as certain
guaranty of its increase in price. The result
however, has been entirely different, for
Immediately following spasmodic and slight
rise the price of silver began to fall after the
lowest point ever known. This disappointing
result has led to renewed and persistent efforts
In the direction of free silver coinage.
Meanwhile not only the evil effects of the
operation Of the present law constantly accu-
mulating, but the result to which its execution
who give the least heed to financial subjects.
This law provides that in payment for the 1900
the treasury is commanded to purchase monthly,
there shall be issued treasury notes redeemable
demand in gold or silver coin, at the discre
ton Of the secretary of the treasury, and that
said notes may be re-issued. 1t is, however, de-
clared IN the act ito be 1.-THE established policy of
the United States to maintain the two metals
upon parity with each other upon the present
legal ratio or such ratio 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,
if,by such action the parity between gold ana
silver may be, disturbed Manifestly refusal
by the secretary to pay these treasury notes in
gold, if demanded, would necessarily result
il their discredit and depreciation OBJ,
legations payable only in silver, and
would destroy the parity between the two met
ais by establishing discrimination in favor OF
gold.
Up to the 18th day of July, $685. these notes
had been issued in payment of silver bullion
purchased to the amount of more than S147,-
100000 While all but a very small quantity of
this bullion remains uncoined and without use
fulness IN the treasury many of the notes given
in its purchase have been paid in gold.
This Is illustrated by the statement that be-
tween the first day of May, 1892, and the 10Th
day OF July, 1895, the notes of this kind issued
III payment for silver bullion amounted to lit
tie more than S54000,000 and that during the
same period about $40 100000 were paid by the
treasury in gold for the redemption of such
notes.
The policy necessarily adopted of paying these
notes in gold has not spared the gold reserve of
Sl00,OO0.0Q0 long ago set aside by the government
for the redemption OF other notes, for this fund
has already been subjected to the payment of
new Obligations amounting TO about Sl90,0O0O00
on account OF SILVER purchases ana has as a
consequence for the first time since its creation,
been encrOached upon.
We have thus made the depletion of our gold
easy, and have tempted others and more appre-
ciative nations TO add tito their stock. That the
Opportunity we have offered has not been neglect
ed, is shown by the large amounts of gold which
have been recently withdrawn from treas
ury and exported TO increase the financial
strength of foreign nations. The excess of eX-
ports O. gold over its imports for the year end
ing June 80, 1898, amounted to more than $751;
100000. Between the LIST day Of July, 1890, and
the 18th day Of July 1898, the gold coin and
bullion IN our treasury decreased more than
SI32 900 600, while during the same period the sill
Yer coin and bullion in the treasury increased
more than S147 100000. Unless government
bonds are to be constantly issued and sold to
replenish our exhausted gold, ONLY to be again
eXhaIIs+e9 if is apparent that the oneratio1 of
the silver purchase law now in force leads in
the direction of the entire substitution of silver
Tor the gold In the government treasury, and
that this must be followed by the payment of
all government obligations in depre clated
silver.
AT this stage gold and silver must part COM
pany and the government must fail in its estab-
Ished policy to maintain the two metals on a
parity with each other. Given over to the exclu-
Siye use Of a currency greatly deprecated ac-
cording 70 the standard OF the commercial world,
tons Of the frst-class, nor could our
government claim performance of its
obligation, so far such obligation
the use of the people the best and safest money.
II, as many of its friends claim, silver ought to
occupy larger place in our currency and the
currency Of the world through general interna-
tional cooperation and agreement, it is obvious
that the United States viii not be in position to
gain hearing in favor of such an arrangement
SO long IS we are willing to continue our at
tempt 10 accomplish the result single handed.
The knowledge in business circles, among our
own people, that our government cannot make
It's fiat equivalent to intrinsic value, nor keep
inferior money OH parity with superior money
by its own independent efforts, has resulted in
such q lack Of confidence at home in the sta
blity Of currency values that capital refuses it's
aid to new enterprises while the millions are
actually withdrawn from the channels of trade
and commerce to become idle and unprOductiva
IN the 0anQS OF uInld owners. Foreign invest
ors, equally alert, not only decline to purchase
American securities, but make haste to sacrifice
those which they already have.
1t does not meet the situation to say that APP
preheusion in regard TO the future of our
finances is groundless and that there is no reason
for lack Of confidence in the purposes or power
of the government in the premises The very
existence of this apprehension and lack of con-
hdence, however, is a menace which
ought not for a moment to be dis
regarded. Possibly if the undertaking we
have IL hand were the maintenance or specific
known quantity of silver at a parity with gold,
our ability TO do might be estimated and
gagged, and perhaps in view of our unparal-
leled growth and resources, might be fayorably
passed upon But when our ayowed endeavor
IS 10 maintain such parity in regard to all
amount of silver increasing at the rate of $780,
100000 yearly, with no fixed termination to such
increase, it can hardly be said that problem
Is presented whose solution is free from doubt.
The people Of the United States entitled to
q sound and stable currency, and to money rec
Ogn1ZeQ as such on every Xchange and in
every market of the world. Their government
has no right to iniure them by financial expert