The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1893-08-09


In the worid-Depletion of Gold Has
Been Easy--Calm Counsels Asked.
WASHINGTON, Aug. S-President Cleve-
lands message was read in congress today.
II was as follows:
To the congress of the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together in eN-
ira session the peoples representatives in
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 mitigated and dan
gers threatening the future may be
averted.
Our unfortunate financial plight is not
the result of untoward events nor of con-
ditions related to our natural resources,
nor is IL 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 invitation to
safe investment and with satisfactory as
surance to business enterprise, suddenly
on every side.
Numerous moneyed institutions 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
engaged in legitimate business are sur
ca1 IN nd bot ba bau Of
fer for loans, though heretofore satisfac-
tory, are no longer accepted.
Values supposed to be fixed are fast be-
coming conjectural, and loss and failure
have involved every branch of business.
/ believe that these thin-s are princi-
pally chargeable to congressional legisla-
ton 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 truce, after long struggle
between the advocates of free silver coin
age and those intending to be more con-
sentative.
Undoubtedly the monthly purchases by
the government of 100000 ounces of sill
yer, enforced under the statute, were re-
garded by those interested in silver pro-
duction as certain guaranty of its in
crease in price
The result, however, has been entirely
different, for Immediately following q
spasnodic 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 re-
newed and persistent effort in the direc-
ton of free silver 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.
This law provides that in payment for
the 4 100000 ounces of silver bullion which
the secretary of the treasury is COM
manded to purchase monthly, there shall
be issued treasury notes, redeemabe on
demand in gold or silver coin, at the
discretion of the secretary of the treasury,
and that said notes may be leissued.
1t is, however, declared in the act to be
''the established policy of the United
States to maintain thu two metals on a
parity with each other upon the present
legal ratio or such ratio as may be pro-
vided by law"
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising the discretion nomi-
nally invested in him, if by such action
the parity between gold and silver may be
disturbed Maniiestly a refus al by the
secretary to pay these treasury notes in
gold, if demanded, would necessarily re-
suit in their discredit and depreciation as
OH 10
would destroy the parity between the two
metals by establishing a
Discrimination In Favor of Gold,
Up to the 18th day of July, 1898, these
notes had been issued in payment of silver
bullion purchased to the amount of more
than $141 900, OOO. While all but very
small quantity Of this bullion remains
unconed 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
May /, 1892, and July 49, 1898, the notes of
this kind issued in payment for silver
bullion amounted to a little more than
t54,0O0000, and that during the same
period about $40, 100000 We're paid Ivy 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 100000, 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 oblga-
tions amounting to about $3.50 600, 900 on
account of silver purchases and as a con-
sequence for the first time since its crea-
tion been encroached upon. We have thus
made the
Depletion of Our Gold Easy
and have tempted other and more appre-
cative 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 re-
Gently drawn from our treasury and eX-
ported 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
$50 ,500,0 900.
Between the first day of July, 1890, and
the 10Th day of July, 1898, the gold coin
and bullion in our treasury decreased
more than 1872, 100000, while during the
same period the silver coin and bullion IN
the treasury increased more than Sl47,-
100000
I.IR