Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1893-08-17
THE MESSAGE.
The Presidents Recommendation
to Congress.
Repeal of the Sherman Act Favored
Legislation Advised for the Es-
tabIIshing of a Gold
Standard.


as follows:
To the Congress df the United States:
The existence Of alarming, an extraordi-
nary, business situation Involving the welfare
and prosperity Of all our people, has con-
strained me to call together in extra session
the peoples representatives in congress to the
end that through wise and patriotic exercise
of the legislative duty with which they are
solely charged, present evils may be mitigated
and dangers threa tening the future may be
ayerted.
Our unfortunate financial plight is not the
result of untoward events or Of conditions re-
lated to our national resources; is it trace
able to any OF the Affections which frequently
check national gsowth and prosperity. With
plenteous crops, with abundant promise of re-
munerative prediction 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
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 anx-
iouS to loan, and those engaged in legitimate
business surprised to find that the securi-
ties they offer for loans though heretofore sat-
factory, are no longer accepted Values sup
posed to be fixed are fast becoming conjectural
and loss and failure have invaded every branch
of business.
believe these things are principally charge
able to congressional legislation touching the
purchase and coinage of silver by the general
government This legislation is embodied in a
statute passed the 18th day of July, 1890.
which was the elimination Of much agitation
Of the subject involved and which may be con-
sidered truce after the long struggle between
the advocates of free silver coinage and those
intending to be more conservative
Undoubtedly the monthly purchases by the
government of 500, 100 ounces of silver forced
under that statute. were regarded by those in
terested in silver production as certain guar
mt V n in TarirQ hny
ever, ha s been entirely different for immedi-
ately following 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 and persistent effort in the
direction of free silver coinage.
Meanwhile, not only are the evil effects of
the operation of the present law constantly &C
cumulating, but the result to which its execu-
ton must inevitably lead is becoming palpable
to ali who give the least heed to financial sub
jects
This law provides that in payment for the
4,590,0J0 ounces of silver bullion which the
rotary of the treasury is commanded to pur-
chase monthly there shall be issued treasury
hotes redeemable on demand in gold or silver
con at the discretion of the secretary of
the treasury, and that the said notes may
be reissued 1t is, however declared in the act
to be 1.-The established policy of the United
States to maintain the two metals upon parity
with each other upon the present legal ratio or
such ratio may be provided by law"
This declaration controls the actions
OF the secretary OF the treasury as to
prevent his exercising the discretion nomtnally
vested in him if by such action the parity be-
tween gold and silver may be disturbed. Mani
testify, refusal by the secretary to pay these
treasury notes in gold if demanded would
necessarily result In their discredit and de-
probation, as obligat ionS payable only in sill
yer, and would destroy the parity between the
two metals by establishing 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 of more than st47. O0o,-
QUO While all SGT very small quantity Of
fulness in the Treasury, many of the notes
given in its purchase have been paid in gold.
This is illustrated by the statement that be
tween the Ist of May. 1892. and the 18th day of
july 1893 the notes of this kind issued in pay
ment for silver bullion amounted to a little
more than So, YoO,00O and that during the same
period about s42 o00, 900 were paid by the treas
urv in gold for the-redemption of such notes.
The policy necessarily adopted of paying
these notes in gold has not spared the gold re-
serve of S1J0U0O,0O0, 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
0o0 on account of silver purchases, and
has as consequence, for the first time since its
creation, been encroached upon
We have thus made the depletion Of our gold
easy and have tempted other and more appre
the opportunity we have offered mas 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 ex-
cess of exports Of gold over its imports for
| the year ended June 81, 1893, amounted to
more than SS7, SOC, 00J. Between the first day
of January, 1890, and the ID tn day OF July 1893,
| the gold coin and bullion in our treasury de-
creased more than 3d., OOO, 600, while during
the same period the silver coin and bullion in
the treasury increased more than I41,0oO.O0l.
Unless government bonds are to be constant
| ly issued and sold to replenish our exhausted
gold, only to be again exhausted it is apparent
that the operation of the silver purchase law
now in force leads in the direction of the entire
substitution OF silver for the gold in the gov
eminent treasury and that this must be fol-
| lowed by the payment of all government obii-
| cations in deprecated silver
At this stage gold and silver must part COM
pany and the government must fail in its EST b
hShed policy to maintain the two metals on a
parity with each other
| Given over TO the exclusive Of cur
rency greatly deprecated, according to the
standard of the commercial world, we could
no longer claim place among the nations OF
the first class, nor could our government claim
| performance of its obliga tion, SO far as such
| an obligation has been imposed upon 1t, to
| provide for the use of the people the best and
safest money. If, as many of its friends claim,
| silver ought to occupy higher place in our
currency and the currency Of the world through
general international Co operation and agree
| ment, it is obvious that the United States will
not be in position to gain hearing in favor
OF such an arrangement so long as we are will
! ing to continue our attempt to accomplish the
| result single handed
| The knowledge in business circles among our
| own people that our government cannot make
| its fat equivalent to intrinsic values nor keep
| inferior money on parity with superior money
by its own independent efforts, has resulted in
| such lack of confidence at home, in the
stability of currency values that capital refuses
| its aid to new enterprises while millions
ere actually withdrawn from the channels OF
| trade and commerce to become idle and unpro-
ductive in the hands of timid owners Foreign
investors, equally alert, not only decline to
| purchase American securities, but make haste
| to sacrifice those which thev already have
It does not meet the situation TO say that ap-
| prehension In regard to the future of our
| eason for lack OF confidence in the purposes
| or power of the government in the premises.
| The very existence Of this apprehension and
| lack of confidence, however caused, is q menace
| which ought not for moment be disregarded
Possibly il the undertaking we have in hand
| were the maintenance of specific known
| quantity OF silver parity with gold. our
| ability to do so might be estimated and gauged
and perhaps. in view of our unparalleled grower
| and resources, might be fayorably passed upon
| But, when our ayowed eudeayor is to maintain
such parity in regard to an amount OF silver In.
creasing at the rate of 90 yearly, with
g.