The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1893-08-12

people, has constrained me to call together
in extra session the peoples representatives
I'm congress to the end that through a wise
and patriotic exercise Of the legislative
duty, with which they solely are charged,
present evils may be mihgated and dan
gers threatening the future may be
averted.
Cause Of the Trouble.
Our unfortunate financial plight Is not
the result of untoward events nor of CON
ditionE related TO our natural resources;
nor Is It traoeable TO any Of the Affections
which frequently check national growth
and prosperity. With plenteous crops,
with abundant promise Of remuneratiVe
production and manufacture, with un
usual invitation 60 safe Investment and
with satisfactory assurance to business en-
terprlse, suddenly financial distrust and
fear have sprung up on every side Numer-
ous moneyed institutions have suspended
because abundant assets were not i'm
mediately available to meet demands Of
frightened depositors. Surviving oorpor-
ations and individuals are content to keep
in hand the money they are usually anx-
ious to loan, and those engaged in legiti-
mate business are surprised TO find that
the securities they offer for loans, though
uHfNINlOIN NhAlHAhIlbANH hAN hO AohkNA ~
cepted. Values supposed to be fixed are
fast becoming oonjectural, and loss and
failure have involved every branch Of
business.
believe these things are principally
ohargeablo to congressional legislation
touching the purchase and coinage Of
silver by the general government.
Evils Of the sherman Law.
This legislation is embodied in a statute
passed on the 14th day Of July, 1890,
which was the elimination Of much agi-
tation on the su biect involved, and which
may be considered a truce, after long
struggle, between the advocates of free
silver coinage and those intending to be
more Conservative,
Undoubtedly the monthly purchase by
the government Of 100000 ounces of
silver, enforced under that statute, was
regarded by those interested in silver pro
duction a. 4 certain guaranty Of its In
crease in price The result, however, has
been entirely different, for Immediately
following a spasmodio and slight rise the
price Of silver began to fall after the pas
sage Of the Rot, and has since reached the
lowest point ever known. This disappoint.
ing result has led to renewed and per
sistent effort in the direction of free silver
coinage.
Meanwhile, not only are the evil effects
Of the operation Of the present law con-
stantly aeoumulatinR, but the result to
which its execution must inevitably lead
Is becoming palpable to all who give the
least heed to financial subjects.
To Preserve the Parity.
This law provides that in payment for
the 100000 ounces of silver bullion
which the secretary of the treasury is com
manded to purchase monthly, there shall
be issued treasury notes redeemable on de-
mand in gold or silver coin, at the discre-
ton of the treasury, and that the said
notes may be reissued. 1t is, however, de-
clared 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 nomi-
nally vested In him If by such
action the parity between gold and
silver may be disturbed. Munifestly, a
refusal by the secretary Of the treasury to
pay these treasury notes in gold, If de
manded, would necessarily result in their
discredit and depreciation as obligations
payable only in silver, and would destroy
the parity between the two metals by es.
tablishing a discrimination in favor OF
gold.
Gold for Silver.
Up to the 18th day of July, 1893 these
! notes had been issued in payment of silver
| bullion purchases to the amount of more
| than sl47, ,0OO, 900. While all but very
! small quantity Of this bullion remains IN,
coined and without usefulness in tn,
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, 1899, and the
/ 18th day Of July, 1893, the notes of thii
kind issued In payment for silver bullior
amounted TO little more than S54. .0O0 900
and that during the same period Rbou
$40, 100000 were paid by the treasury II
gold for the redemption Of such notes.
The policy necessarily adopted Of paying
these notes In gold has not spared the golC
reserve of SlOO, 600, 600 long ago set aside b.
the government for the redemption o
other notes, for this fund has already beei
subjected to the payment Of new obliga
tions amounting to about Sl50,0OO,0O0 or
account Of silver purchases, and has, AS
consequence, for the first time since IL
creation, been enoroached upon.
Gold Reserve Depletion.
We have thus made the depletion Of ou
gold easy, and have tempted other AM
more appreciRtivs nations TO add it to thei
stock. That the opportunity we have Of
fered has not been neglected is shown b
the large amounts Of gold which have bee
recently drawn from our treasury and el
ported TO increase the financial strength q
foreign nations The excess Of exports {
gold over its imports for the year sndin
June 80, 1898, amounted TO more than $S7
800. 900.
Between July /, 1890, and July 15, 1ssI
the gold coin and bullion in our treasuT
decreased more than tls2, 600 900, Will
during the same period the silver coin an
bullion in the treasury increased MOI
than 141O0O,0OO. Unless governmer
bonds are 70 be constantly issued and sol
10 rspienish our exhausted gold, only TO |
again exhausted, IL Il apparent that Il
operation Of the silver purchase law no
IN force leads 10 the direction Of the entlr
substitution Of silver for the gold In th
: government treasury, and that this mui
. be followed by the payment Of all govern
ment obligations In deprecated silver.
Gold and silver Part Company.
Al this stage gold and silver must par
? company and the government must fail /
I its established policy 10 maintain the tw
o metals on parity with each other. Give
d over TO the exclusive use OF currenc
Z greatly deprecated according 70 the stanl
Z ard OF the commercial world we could d
longer claim a place among nations Of d
] first n1nnu mar nntHlH ouw fForravr al a
@ a performance Of It's obligations, so far
d such an obligation has been imposed upC
n Il to provide for the use Of the people u
" best and safest money.
l. IT, as many Of its friends claim, silvt
l. ought to occupy a larger place In our Gu
e Tency and the currency of the wor
Is through general international cooper
). uon and agreement, It Ia obvious that a
r. United States will not be in a position
/ gain q hearing in favor Of such an a
j, rangement so long as we are willing
continue our attempt TO accomplish Il
,s result single handed.
% We Cannot Make Fiat Money.
+ The knowledge In business clrcl
Il among our own people that our COVER
- ment cannot make its Fat equivalent
intrinsic value nor keep inferior money
= a parity with superior money by It's ov
independent efforts has resulted In such
~ lack Of confidence a. home In the stabili
=, Of currency values that capital refuses
aid TO new enterprises, while millions d
q actually Withdrawn from the channels
trade and commerce to become idle a
unpTOduotive In the hands Of timid oW
Z. ers- Foreign investors. equally alert, q
- only decline 20 purchase American secl
~ tiles, but make haste 70 sacrifice III,
N which they already have
ls IL does meet the situation 10 say that
.t prehensiou in regard 10 the future of q
an finances is groundless and that there is
'e reason for lack Of confidence la the p
as poses or power Of the government IN
promises The very existence Of this
~ prehension and lack OF confidence, he