The National tribune. [volume] (Washington, D.C.) 1877-1917, 1893-08-10
THE MESSAGE.
The President Makes an Urgent APP
peal for the Repeal of the Sherman
Law.
To the Congress Of the United States:

To the Congress Of the United States:
The existence OF an alarming and ex-
traordinary business situation, involving
the welfare and prosperity Of all our peo-
ple has constrained me to call together In
extra session the peoples representatives
in Congress, to the end that through
wise and patriotic exercise Of the legisla-
tive duty with which they solely are charg-
ed, present evils may be mitigated and
dangers threatening the future may De
averted.
Our unfortunate financial plight Is not the
result Of untoward events nor of conditions
related to our natural resources; nor is it
traceable to any of the Affections which
frequently check national growth and pros
perity. With plenteous crops, with abund-
ant promise of remuneratiye production
and manufacture, with unusual invitation
| to safe investment and with satisfactory
assurance to business enterprise, suddenly
| financial distrust and fear have sprung up
| on every side. Numerous moneyed 1nsti-
| tutions have suspended because abundant
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 en-
| gagged 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 invaded every branch
4 of business.
! Charged to Silver Legislation.
| ] believe these 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 14th day of July, 1890, which
| was the elimination of much agitation on
| the subject involved, and which may be
| considered truce, after a long struggle,
| between the advocates Of free silver coinage
and those intending to be more conserva-
| tive
Undoubtedly the monthly purchases by
| the Government of four million and five
| hundred thousand 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 re-
] suit, however, has been entirely different,
| for Immediately following a 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 ard
| persistent effort in the direction of free sill
yer coinage
Meanwhile, not only are the evil effects
of the operation Of the present law con-
| stantly accommodating, but the result to
which it's execution must inevitably lead is
| becoming palpable to all who give the least
| heed to financial subjects.
Paid in Gold.
This law provides that in payment for the
| four million and FIVE hundred 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 Secre-
| tary of the Treasury, and that said notes
| may be reissued. 1t is, however, declared
| in the act to be "the established policy of
| the United States to maintain the two
metals a 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 exercising the
| discretion nominally vested in him, If by
| such action the parity between gold and
! silver may be disturbed Manifestly q re-
| fusal by the Secretary to pay these Treas
ury notes in gold, If demanded would
necessarily result in their discredit and de-
probation as obligations payable only in
silver, and would destroy the parity be
tween the two metals by establishing a dis
elimination in favor of gold.
Up to the 18th day Of July, 1885, 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 but a very small
quantity of this bullion remains uncoined
and without usefulness in the Treasury,
many of the notes given In it's purchase
have been paid in gold. This is illustrated
by the statement that between the lst day
of May, 1892 and the 18th day Of July, 1879,
| the notes Of this kind issued in payment
| for silver bullion amounted to little more
| than ffty-four millions of dollars, and that
| during the same period about forty-nine
| millions Of dollars were paid by the Treas
| ury In gold for the redempt ion of such
| notes.
| The policy necessarily adopted Of paying
| these notes in gold has not spared the gold
| reserve of one hundred millions of dollars
| 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
one hundred and fifty millions of dollars
| on account of silver purchases, and 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 other 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 recently drawn from our treasury and
! exported to increase the financial strength
! of foreign nations. The excess of exports
| of gold over its imports for the year end
! ing June 80, 1893, amounted to more than
| eighty-seven and a half millions of dollars.
Between the LIST day Of July, 1890, and the
! 18th day of July, 1893, the gold coin and bull
! lion in our treasury decreased more than
| one hundred and thirty-two millions of
| dollars, while during the same period the
| silver coin and bullion in the treasury in
! creased more than one hundred and forty
| seven millions of dollars. Unless govern
| ment bonds are to be constantly issued and
/ sold to replensh our exhausted gold, only
| to be again exhausted, it is apparent 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
| government obligations in deprecated sill
| yer.
Gold and Silver Part Company.
At this stage gold and silver must part
| company and the Government must fail in
PENSION OFFICE.