Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-08
THE MESSAGE.
The President Advises Ulcon.
ditiOlal Repeal.
FINANCIAL SITUATION REVIEWED.
4 Brief but F0rcihle DOCUMENT Sent to
Congress-

Congress-
PROMPT ACTION DEMANDED.
Following Is the text Of the message sent
to Congress today by the President:
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-
pie. has constrained me to call together in
extra session the peoples representatives
IN Congress-. to the end that through q
| 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 be
| averted.
| Our unfortunate financial plight Is not the
| result of untoward events nor Of conditions
| related to our natural resources; nor Is 1t
traceable to any Of the Affections which
| frequently check national growth and pros
perity. With plenteous crops. with abund-
ant promise Of remunerative 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 insti-
buttons 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 ind that the securities they offer for
loans. though heretofore satisfactory, are
no longer accepted. Values supposed to be
| fixed are fast becoming conjecturaI and
loss and failure have invaded every branch
| Of business.
Charged to Silver Legislation.
1 believe these things are principally
chargeabls to Congressional legislation
| touching the purchase and coinage Of silver
| by the General Government
This legislation Is embodied in a 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 a truce. after q long struggle
between the advocates Of freq 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 q certain
| guaranty Of its increase in price. The re-
| suit, however, has been entirely different
for Immediately folloWinS-a o. 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 tree 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 its execution must inevitably lead Is
| becoming palpable to all who give the least
! heed to financial subjects.
| Paid i'm 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 on 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, II BY
| such action the parity between gold and
| silver may be disturbed. Manifestly a 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 q dis
| elimination in favor Of gold.
Up to the 18th day Of July, 1888 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 very small
quantity of this bullion 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 LIST day
| of May. 1882. and the 18th Gay of July, 1892
the notes of this kind issued in payment
| for silver bullion amounted to a little more
than hfty-four millions Of dollars, and that
| during the same period about forty nine
millions Of dollars We're paid by the Treas
ury 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 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
|
on account Of silver purchases. and has as
a consequence. for the first time since tts
creation. been encroached upon.
| We have thus made the depletion of our
gold easy. and have tempted other and
more appreciative nations to add 1t 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 thar
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 replenish our exhausted gold, only
to be again exhausted. it Is apparent thai
the operation Of the silver purchase Law
now in force, leads in the direction Of the
entire substitution Of silver for the gold IL
the Government Treasury, and that this
must be followed by the payment Of al
government obligations in deprecated sil