Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1893-08-10
r MESSAGE
or THE PRESIDENT TO CONGRESS
ON THE TWO METALS.
The Sherman Act Held Responsible
for the Present financial Distress
difficulties of a Parity Rule.

for the Present financial Distress
difficulties of a Parity Rule.
To the Congress of the United States:
The existence of an alarming and
extraordinary business situation, in
volying the welfare and prospe rity
of all our people, has constrained
me to call together in extra session
the peoples representatives IN Cons
gress, to the end that through wise
and patriotic exercise Of the lcgisla~
tive duty with which they are solely
charged, the present evils may be
mitigated and the dangers threaten.
ing the future may be averted.
FINANCIAL DISTRESS.
Oar unfortunate financial plight
is not the result of untoward events,
nor of conditions related to our nat
ural resources, nor is it traceable to
any Of the Affections which fires
quently check national growth and
prosperity. With plenteous crops,
with abundant promise Of remuner,
atiye production and manufacture,
with unusual invitation to safe in
vestment and with satisfactory as
surance to business enterprise, suds
denly financial distrust and fear
have sprung up on every side. Num-
erous moneyed institutions have sus-
pended because abundant assets were
not Immediately available to meet
the demands Of frightened deposit
tors.
Surviving corporations and indi-
viduals are content to keep III hand
the money they are usually anxious
to loan, and those engaged in legitis
mate business are surprised to find
that the securities they offer for
loans, though heretofore satisfac-
tory. are no longer accepted. Values
supposed to be fixed are fast becom-
ing c~onjectural, and loss and failure
have invaded every branch of busi>
ness,
THE SHERMAN ACT THE CAUSE.
| believe these things are princi-
pally chargeable to Congressional
legislation touching the purchase
and coinage of silver by the general
Government. This legislation is
embodied in a statute passed on the
14th day of July, 1890, which IVES
the elimination of much agitation
on the subject involved and which
may be considered a truce after a
long struggle between the advocates
of free silver coinage and those ins
tending to be more conservative.
Undoubtedly the monthly purchase
by the Government of 100000
ounces of silver, enforced under that
statute, was regarded by those in
terested in silver production as a
certain guarantee of its increase in
price.
The result, however has been eos
tirely different, for Immediately fol-
lowing aspasmodic and slight Use
the price of silver began to fall after
passage of the act, aud has reashed
the lowest point ever known.
This disappointing result has lei
to renewed and persistent effort in
the direction of free silver coinage.
Meanwhile, net only are the evil eff
fects of the operation of the present
law constantly accommodating, but
the result to which its execution
must inevitably lead is becoming
palpable to all who give the least
boaI T., fpanoia o,,hiao+c
DISCRETIONARY POWER OF TIE
TREASURY.
This law provides that IL pay nlent
for the 100000 ounces of silver
bullion which the Secretary of the
Treasury is commanded to purchase
monthly, there shall be issued treas
ury notes, redeemable on demand in
gold or silver coin, at the discretion
of the Secretary of the Treasury,
and that said notes may be re-issued.
1t is however. declared III the act to
be ''the established policy Of the
United States TO maintain the two
metals on a parity with each other
upon the present legal ratio, 7 such
ratio as may be provided by law"
This declaration so controls the acc
ton of the Secretary of the Treas
ury as to prevent his exercising the
discretion Normally vested in him,
if by such action the parity between
gold and silver may be disturbed.
Manifestly, a refusal by the Secre-
tary to pay these treasury notes in
gold, if demanded, would necessarily
re ult in their discredit and depres-
sion as obligations payable only in
silver, and would destroy the parity
between the two metals by establish
ing a discrimination in favor Of gold.
Up to the fifteenth day of July,
1898, these notes had been issued
in payment of silver bullion pure
chases, to the amount of more than
$147,00O,00O While all but a very
small quantity of this bullion re-
mains u~ncoined, and without use,
%fulness 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 first day of May, 1892,
and the fifteenth day of July, 1892,
the notes of this kind issued ia
payment for silver bullion amouted
to a little more than $54, 000. 900,
and that during the same period
49, q 40 mn no