Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1893-08-10
A PROMPT REPEAL
OF the Sherman Silver Pur-
chasing Act Recommend
BY President Cleveland in His
Message to Congress.

He Holds the Law Mentioned Responsible
For the Present Unfortunate Plight Into
Which This Country Has Been Plunged.
Wage Garner rDefenseIess-Tarifr Reform
Not in 1t Now.
WASHINGTON, Aug. S.-The following
is the presidents message to the extra
session of congress:
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 the
peoples representatives in congress, to the
end that through wise and patriotic exer-
else of the Legislative duty with which they
are charged, present evils may be mitigat-
ed and dangers threatening the future may
be averted. H'.
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 sat
isfactory 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 de-
mands of frightened depositors. Surviving
nd inI iviA lie ptanf faf1
keep in hand the money they are usually
anxious to loan. and those engaged in
legitimate business are surprised to find
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 have invaded every branch
of business.
l believe these things are principally
chargable to congressional legislation,
touching The purchase and coinage of sill
yer by the general government.
This legislation is embodied in statute
passed on the l4th day of July, 1880, 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
servatiye.
Undoubtedly the monthly purchases by
the government of 4,500, 900 ounces of silver,
enforced under the statute, were regarded
by those interested in silver production us
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
to renewed and persistent effort in the di
rection of free silver coinage.
Meanwhile, not only are the evil effects
of the operation of the present law con
stantly accumulating, but the result tc
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 thu
4,500,0O0 ounces of silvegibullion which the
secretary of the treasury is commanded tt
purchase monthly, there shall be ISSUED
treasury notes redeemable on demand il
gold and silver coin, at the discretion o
the secretary of the treasury, and that sale
notes may be reissued.
1t is, however, declared in the act to b
"The established policy of the United
States to maintain the two metals on
parity with each other upon the present lie
gal ratio or such ratio as may be provided
by law" This declaration so controls tht
action of the secretary of the treasury a!
to prevent his exercising the discretion
nominally vested in him, if by such actor
the parity between gold and silver may b.
disturbed. Manifestly refusal by th'
secretary to pay these treasury notes il
gold if demanded, would necessarily result
in their discredit and depreciation as obi
cations payable only in silver, and woult
destroy the parity between the two metal
by establishing discrimination in favor O
gold.
Up to the 18th day of July, 1923, thes
notes had been issued in payment Of silve
bullion purchased, to the amount of NOR
than $141 G00,000 While all but yer.
small qua ,,tity of this bullion remains IN
coined and without usefulness in the treas
ury, many of the notes given in its pur
chase have been paid in gold. This is il
lustrated by the statement that between
the 1st day of May, 1902, and the 18th da,
of July, 1898, the notes of this kind issuet
in payment for silver bullion, amounted II
little more $4,000 900, and that during
the same period about $49, ,000, 900 were pait
by the treasury in gold for the redemption
of such notes.
The policy necessarily adopted Of paying
these notes in gold has not spared the golt
reserve Of $l0O, ,0OO,O 600 long ago set aside b.
the government for the redemption of othe
notes, for this fund has already been sub