River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1893-08-10
MESSAGE
The Presidents Mes
sage Is Delivered
to Congress.
1t Calls Attention to
the Depressed FL
nancial Sit
uation.
Lays the Blame Squarely
on Silver Legis-
lation.
The Evil Effects Are At
cumulating While the
Sherman Law
Stands.
1t Will Lead to the Sub
stitution of Silver for
Gold in the Treas
ury.
We Must Therefore Fail in
the Policy Of Maintain.
ing a Parity.

WAsHISGroS, ID. c., Aug. s.-The presl-
dents message was delivered to congress at
l2:45 o'clock.
WASHINGTON. ID. c.. Aug s.-To the Con-
gress of the United States: The existence
of an alarm ing, extraord mary business stu
alton. involving the welfare and prosperity
Of al our people. has constrained mo to
call togot Their IN extra session the peoples
representatives in congress, to the end that
Though a wise and patriotic exercise of the
legislative duty with which they solely are
charged, present evils may be mitigated and
dangers threatening the future MAJ be
averted.
Our unfortunate financial plgh. is not
the result of untoward events nor of condi-
lions related TO our natural resources; nor is
it traceable to any of the affections which
frequently check national growth and pros
perity. With plentsous crops, with abun-
dant promise OF remunerative production
and manufacture, with unusual invitation
to safe investment and with satisfactory
assurance to business enterpr Sc, suddenly
financial distrust and fear have sprung
upon every side. Numerous moneyel in
situations have suspended because abundant
assets were not Immediately available to
meet tho demands of frightened depositors;
surviving corporation, and individuals are
content to keep in hand the money they
are usually anxious to loan. and those en-
gagged in legltim ate business are surprised
to lind 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 havs invaded every branch
OF business. / bslieve these things are
principally chargeable to congressional
legislation touching the purchase and coin
age of silver by the general government.
This legislation is embodied in a statute
passed on the IA day of July, 1899, which
was the elimination of much agitation on
the subject involved. and which may be
considered a truce, after the loag struggle,
between the advocates of free silver coinage
and those intending to be moro conserya-
tive.
Undoubtedly the monthly purchases by
The govern m emit of 4. 500 900 ounces of silver.
forced under the statute, were regarded by
those iuteres Jed in silver production as
certain guaranty of its increase In price.
The result, however. has been entirely diff
ferent, for Immediately following a spas
/ modic and slight rise the price of silver be-
/ gan to fall after the passage of the act and
/ has since reached the lowest point ever
known. This Disappointing result has led
4 TO removed and persistent effort in the
direction of FREQ silver coinage.
Meanwhile, not only are the evil effects
1 Of the operation of the present law con-
/ stantly accommodating, but the result to
Z q ion ~ "a II
/ becoming palpable to all who give the least
\ heod TO financial subjects.
This law prov .des that m 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 treas iry
/ notes redemable on demand in gold or sill
/ yer coin, at the discretion of the secretary OF
/ the treasury, and that said NOES
may be re-issued. II IS however, declared
| in the act to be ''the established policy of
/ the United States 20 maintain the two
metals upon 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 TO prevent
/ his exercising the discretion nominally
/ vested in him. If by such action the parity
between gold and silver may be disturbed.
i Manlfestly a refusal by the secretary to pay
these treasury notes in gold, If demanded,
4 would necessarily result IN their discredit
and depreciatiOn as obligations payable
/ only ia silver. and would destroy the parity
between the two metals by establishing
a discrimination in favor of gold.
Up to the 18Th day of July, 1893. these
/ notes had been issued in payment of silver
bullion purchased, TO the amount oil more
than $i47 900. 90. While all but very
small quantity Of this bullion remains I'M
eoiued and without usefulness in the
treasury. many of the notes given in
/ its purchase have been paid in gold.
/ This is illustrated by the state-
ment that bet ween the LIST day of May, 1892,
and the 18th day of July, 1898. the notes OF
this kind issued in payment for silver
/ bullion amounted to little more than
/ s54,0J0,0o0, aad that during the same
period about $49. c00,OO0 we're paid by this
treasury in gold Tor the redemption of such
notes.
The policy necessarily adopted Of paying
these notes IN gold has uot spared the gold
1 reserve of 100 O00.0cO long ago sot aside by
the governments for tbs redemption OF other
notes, for this fund has already been sub
i sected to the payment of new obligations
amounting to about $3.50. 100000 on account
of silver purchases, and has. as con4e-
| quence. for the first me since its creation,
| been eucroaoaed upon.
We have thus made the depletion of our
gold easy, and have tempted other and more
| appreciatiye nations to add II to their stock.
That the opportunity We have offered has
| not been neglected. is shown by the large
/ amounts Of gold wlich have been recently
drawn from our treasury and export
/ ed to increase the financial strength
| of foreign nations. The excess of exports
I of gold over its imports for the year ending
June go 1885, amounted TO more than
SS7, 10000. Between the first day of July,
1890. and the 18th day OF July, 1898. the gold
coin and bullion in our treasury decreased
more than Sl32 900, 600, while curing the
I same period tie silver coin and bullion in
the treasury increased more than Sl47,-
10000. Unless government bonds are 10
/ by constantly issued ard sold to replenish
1 our exhausted gold. only to be again ex-
hausted. II - apparent that the operation OF
the silver purchase law now in force leads
I In the dIrec, ion of the entire substitution of
silver for the gold in the government treas
/ ury. and that this must be followed by the
payment of all government obligations in
appreciated silver.
At this stage gold and silver must part
! company and the government must fan in
its established policy TO maintain the two
metals on parity with each other. Given
| over to the exclusive use of a currency
I ard of the comm ercal world. we could no
longer claim place among the nations
OF the first class, nor could our
government claim performance
I of its obligation. so far as such an obliga-
ton has been imposed upon il. to provide
for the use of the people the best and safest
money. II. as many of its friends claim.
silver ought TO occupy larger place in our
: currency and the currency of the world
! through general international co-oneratlon