The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1893-08-11
MESSAGE IN.
Cleveland Sends HIS Message
to the Extra Session of
CongrsSe.
GROVER ADVOCATES THE REPEAL
OF THE SHERMAN ACT.
The Present Depression Chargeable
to the Present LaW-Square-
Toed Against Silver.

uOIlI ulS6SdRG OcllNCI6u ~ COu9ICSo IO-
day is 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 ex
ira session the peoples representatives in
congress, to the end that through 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 it 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
financial distrust and fear have sprung up
on every side. Numerous moneyed insti-
buttons have suspended because abundant
assets were not Immediately available to
meet the demands of frightened deposit
ors. Surviving corporations and individ-
uals are content to keep in hand the
money they are usually anxious to loan,
and those engaged in legitimate business
are surprised so find that the securities
they offer for loans, though heretofore
satisfactory, are no longer accepted.
Values supposed to be fixed are fast be-
coming conjectural, and loss and failure
have invaded every branch of business.
ChargeabIe to the Sherman Law.
believe these things are principally
chargeable to congressional legislation
Il.
yer by the general government.
This legislation is embodied in statute
passed on the 18th day of July, 1890,
which was the elimination of much agi-
tation on the subject 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 purchases by
the government Of 100000 ounces of sill
yer enforced under that statute were re-
Earded 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 raise,
the price of silver began to fall after the
passing of the act and has since reached
the lowest point ever known. This disap-
pointing result has led to renewed and
persistent effort in the direction of free
silver coinage.
EVIL Effects of the Present Law.
Meanwhile, not only are the evil effects
Of the operation of the present law con-
stantly accommodating, but the result to
which it's 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 $500, 900 ounces of silver bullion which
the secretary of the treasury is COM
manded to purchase monthly, there shall
be issued treasury notes redeemable on
demand in gold or silver coin. at the dis
erection of the secretary of the treasury,
and that said notes may be re-issued. 1t
is, however. declared 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
such ratio as may be provided by law"
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising the discretion nomi-
nally vested in him, if by such action the
parity between gold and silver may be dis
turbed. Manifestly a refusal by the secre-
tary topay these treasury notes in gold, if
demanded, would necessarily result in
their discredit and depreciation as Obliga-
tions payable only in silver and would de-
stroy the parity between the two metals
by establishing discrimination in favor
of gold.
Useless Silver In the Treasury.
Up to the 18th day of July, 1898, these
notes had been issued in payment of silver
bullion purchases to the amount of more
than $47, 600, OOO While all but very small
quantity of this bullion remains uncoined
and without usefulness in the treasury,
many Of the notes given in its purchase
have been paid in gold. This is illustrated
by the statement that between the LIST day
of May, 1892, and the 18th day of July,
1898, the notes of this kind issued in pay
ment for silver bullion amounted to a
little over $54 ,000, 900, and that during the
same period about $40, 600, 600 were paid by
the treasury in gold for the redemption of
such notes. The policy necessarily adopt
ed in paying these notes in gold has not
spared the gold reserve of 800, 000, 900 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
$3.50 600, 600 on account of silver purchases,
and has, as a consequences, for the first
time sinceitS creation, been encroached on.
We have thus made the depletion of our
gold easy, and have tempted other and
more appreciative nations to add it to
their stock. That the opportunity we
have offered has not been neglected has
been 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
excess of exports of gold over its imports
for the year ending June so, 1898,
amounted to more than $50, 500, 600.
Danger to the Gold Reserve.
Between the 1st day of July, 1890. and
the 18th day of July, 1898, the gold coin
and bullion in our treasury decreased
more than S1S2. OO0, 900, while during the
same period the silver coin and bullion in
the treasury increased more than S147, O00,-
600. Unless government bonds are to be
constantly iss led and sold to replenish
our exhausteJ gold. only to be again ex-
hausted, it is "pparent that the operation
Of the silver ,rchase law now in force
leads in the d, 2ection of the entire substi-
tuition of silver for the gold in the govern
ment treasury and that this must be fol-
lowed by the Payment of all government
obligations III deprecated silver.