The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1893-08-17
THE PRESIDENTS MESSAGE
THE FINANCIAL QUESTION DEALT
WITH AT LENGTH.

The Sherman Law Must he Repealed
Says the President-The People De-
nannd a Sound and Stable Currency
-TariH Reform Will Come Later.
Washington, Aug S-The presidents
message was delivered to congress as
soon as the two bodies were called to-
gether at. noon. Its reading was pro-
ceeded with. 1t is as follows:
To the Congress of the United States:
The existence of an alarming, an extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together IN eA-
ira session the peoples representatives IN
congress- to the end that through a wise
and patriotic exercise OF the leglslatlve
duty with which they solely are charged,
present evils may be mitigated and dam
gers threatening the future may pe
averted.
Dur Unfortunate Financial PHGht
is not the results of untoward events nor
of conditions related to our natura. r.
sources; nor is it traceable to any or the
Affections which frequently check ma ma
tional growth and prosperity WIN
plennteoHs crops. with abundant promise
of remunerative production ana hahu-
facture: with unusual invitations to
safe investment with satisfactory as
( surances to business enterprise, suddenly
financial distrust and fear have sprung
upon every side. Numerous moneyed
institutions have suspended because their
abundant assets were not Immediately
available to meet the demands OF frigh-
tened depositors; surviving corporations
and individuals are too content to keep
IN hand the money they are usually any
ious to loan, and those engaged in legiti-
mate. business are surprised to hnd that
the securities they offered Tor loans,
though heretofore satisfactory, are no
longer accepted. Values supposed to be
tixed are fast becoming conjectural, and
loss and failure have invaded every
branch of business. I believe these things
are principally chargeable to congresslon--
al legislation touching the purchase ana
coinage of silver by the general govern
ment
This legislation is embodied in sta
tute passed on the 18th day Of July, lSoO,
which was the elimination of much agi-
station on the subject involved, and winch
may be considered a truce after the long
struggle between the advocates OF Tree
silver coinage and those intending to be
more conservative.
Undoubtedly the monthly purchases
by the government of 4,5OO,OOo ounces
of silver forced under that statute were
regarded by those interested in silver
production as certain guaranty OF ITS
increase in price, The result. however,
has been entirely different. for immedl-
ately following a 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 re-
newed and persistent effort in the direc-
ton of free silver coinage.
Meanwhile, not only are the evil eff
e. Of fI,n w
constantly 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 lay provides that in , payment s,1ic OF
which the secretary of the treasury is
commanded to purchase monthly, there
shall be issued treasury notes. redeem
able. on demand, in gold or silver coin,
at the discretion of the secretary OF the
I'D treasury, and that the said notes may pc
/ the act to be '|the established policy of
II the United States to maintain the two
meals upon a parity with each other
upon the leprtesrale tragn, oioelviransrOdx
upon the present legal ratio, Or such
ratio as may be provided by law sE5f
This declaration so controls the action
of the secretary Of the treasury as to
prevent his exercising the discretion NOM
inally vested in him. if by such action the
parity between gold and silver may be
disturbed. Manifestly Il refusal by the
secretary to pay these treasury notes in
gold, if demanded, would necessarily
Result in Their Discredit.
and depreciation as obligations payable
only in silver, and would destroy the
parity between the two metals by es-
tablishing discrimination in favor of
gold.
/. Up to the 18th day of July, 1893, these
,,o+oo boI hnon iceun6 in noymant Of sill
yer bullion purchased to the amount of
more than one hundred and forty seven
millions of dollars. While all but q very
small quantity of this bullion remains I'M
coined 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, 1893, the notes of this kind
issued in payment for silver bullion
amounted to little more than 1000;
900, and that during the same period
about $40, 100000 were paid by the treas
ury in gold for the redemption of such
notes.
The policy necessarily adopted of pay.
ing these notes in gold has not spared
set aside by the government for the re-
demption of other notes., for this fund
has already been subjected to the pay
ment of new obligations amounting tt
about S15O,OOO,OOO on account OF silver
purchases. and has as a consequence, fol
the first time since it's creation, been en-
croached upon. We have thus made the
depletion of our gold easy, and have
, tempted other and more appreciative ma
tons to add it to their stock. That the
opportunity we have afforded has not
been neglected is shown by the large
amounts of gold which have been recent
ly drawn from our treasury and exported
to increase the financial strength of for
eign nations. The excess of exports Of
gold over it's imports for the year ending
June 30, 1893, amounted to over $S7,
100000. Between the LIST day of July
1890, and the 18th day of July, 1893
. the gold coin and bullion in our treasury
decreased more than $132, 100000, while
during the same period the silver coin ant
bullion. in the treasury. increased NOR.
than 47,O0O,OOO. Uuless government
bonds are to be constantly issued and solo
to replerish our exhausted gold, only tt
to be again exhausted, it is apparent tina
the operation of the silver-p'lrch,lse law
now in force leads in the direction of thu
entire substitution of silver for gold il