The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-08-09
PRESIDENTS MESSAGE.
An Able Review of Existing
!. Financial Conditions.
REPEAL THE SHERMAN LAW
It Is Described as the Cause Of All
the Trouble.
DEMAND FOR A SOUND CURRENCY

0ur Gold Reserve Withdrawn from inc |
Treasury and Exported to increase the |
Financial Strength of Other Nations
: where Gold and Silver Part Company.
We Cannot Sustain Flat Money.
WASHINGTON, Aug. 9.-The following Is
copy Of the communication on the fiscal
affairs of the nation forwarded by the
president OF the United States and read In
both houses of congress yesterday after
noon;
To THE CONGRESS OF THE UNITED
. ETArEs-The existence of an alarming and
extraordinary business situation, involv-
ing the welfare and prosperity OF all our
people, has constrained me to call together
in extra session the people representatives
in congress to the end that through a wise
I'd patriotic exercise of the legislative
Gdty, with which they solely are charged,
present evils may be mltigated 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-
ditions related to our natural resources;
nor is II traceable to any of the Affections
which frequently check national growth
aud prosperity. With plenteous crops,
with abundant promise Of remuneratiye
production and manufacture, with un
usual invitation to safe investment and
Z with satisfactory assurance to business en-
terprise, suddenly financial distrust and
fear have sprung up on every side. Numer-
Gus moneyed institutions have suspended
because abundant assets were not i'm
mediately available to meet demands of
frightened depositors. Surviving corpor-
ations and individuals are content to keep
s 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
heretofore satisfactory, are no longer ac-
cepted. Values supposed to be fixed are
fast becoming conjectural, and loss and
failure have involved every branch of
business
] believe these things are principally
ohargeable to congressional legislation
touching the purchase and coinage Of
ailycr by the general government
Evils of the sherman Inv.
This legislation is embodied in statute
passed on ie 14th day of July, 1890,
which was he elimination of much agi-
tation on I, J subject involved, and which
may be c hsidered truce, after a long
struggle, between the advocates of free
silver coinage and those intending to be
more conservative.
the government of 4,500000 ounces OF
silver, enforced under that statute, was
regarded 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 a spasmodic and slight rise the
price of silver began to fall after the pas
sage Of the act, and has since reached the
lowest point ever known. This disappoint,
T. ha.t lad Nx .,p.I,.
Fat effort in the direction of free silver
coiDags.
Meanwhile, not only are the evil effects
Of the operation Of the present law con
stantly Rccumulating, but the result tc
which its execution must inevitably lead
Is becoming palpable to all who give the
least heed to financial subjects.
To Preserve tho Parity.
This law provides that in payment fol
the 100000 ounces of silver bullion
which the secretary of the treasury is com
manded to purchase monthly, there shal
be issued treasury notes redeemable on de
mand in gold or silver coin, at the discre
tion of the treasury, and that the Bat
notes may be Tessued. 1t is, however, de
clared in the act to be "the established
policy of the United States to maintain
the two metals on parity with each
other upon the present legal ratio, or sucl
ratio as may be provided by law" Thii
declaration so controls the action of tn,
secretary of the treasury as to prevent
his exercising the discretion nomi
nally vested in him IL by sucl
action the parity between gold anc
silver may be disturbed. Manifestly,
refusal by the secretary of the treasury Il
pay these treasury notes In gold, if de
manded, would necessarily result in the
discredit and depreciation as obligation!
payable only in silver, and would destroy
the parity between the two metals by es
tablishing discrimination in favor o
gold.
Gold for Silver.
Up to the 18th day of July, 1893, thes
notes had been issued in payment of silve
bullion purchases to the amount of NOR
than SILT ,000, 900. While all but a yer!
small quantity of this bullion remains un
coined and without usefulness in tn
treasury, many of the notes given in it
purchase have been paid in gold.
This is illustrated by the statement tina
between the lst day of May, 1892, and tn
18th day of July, 1898. the notes of thl
kind issued in payment for silver bulliol
amounted to little more than $5i 600 ,O0(
and that during the same period abou
sI9,000,00o were paid by the treasury Il
gold for the redemption of such notes.
The policy necessarily adopted of payin
these notes III gold has not spared the Sol
reserve of Si00, 600, 900 long ago set aside b
tho government for the redemption q
other notes, for this fund has already bee
subjected to the payment of new obligs
tions amounting to about $3.50, 100000 Of
account of silver purchases, and has, as
consequence, for the first time since 1t
creation, been encroached upon.
Gold Reserve Depletion.
We have thus made the depletion Of ou
gold easy, and have tempted other IN
more appreeiative nations to add 1t to the
stock. That the opportunity we have o
fered has not been neglected is SHOWN
the large amounts of gold which have bee
recently drawn from our treasury and e.
ported to increase the financial strength {
foreign nations. The excess of exports
gold over its imports for the year endin
June 3d. 1893 amounted to more than SS7
800 000
Between July |, 1890, and July Is, 1s9
the gold coin and bullion.in our treasur
decreased more than s132, 600 0O0 whi
during the same period the silver coin an
bullion In the treasury increased moi
than ki4T. .0O0.oo0. Unless governmei
pon"s afs 20 De constantly lssneo ano SOFT
TO repienish our exhausted gold, only to b
again exhausted, 1t is apparent that tn,
operation OF the silver purchase law nov
In force leads to the direction of the entir
substitution Of silver for the gold in tn
government treasury. and that this mus
be followed by the payment of all govern
nent obligations In deprecated silver.
Gold and Silver Part Company.
At this stage gold and silver must par