Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1893-08-11
PRESIDENTS MESSAGE
A PLAIN, CONCISE STATEMENT
OF ONE CAUSE.

A PLAIN, CONCISE STATEMENT
OF ONE CAUSE.
Arbitrary Purchase of silver Tn
doubleday the Principal Cause of
Paralysis Of business - Congress
Advised 10 Repeal the Sherman
bill az the Remedy.
To the Congress OF the United
/ States: The existence of an alarming
and Extraordinary business situation,
involving the welfare and prosperity
Of all our people, has constrained me
to call together in extra session the
peoples representatives in Congress,
! to the end that through the wise and
patriotic exercise of the legislative duty
with which they are solely charged
the present evils may be mitigated
and the dangers threatening our fu-
ture may be avoided.
FINANCIAL PLIGHT.
Our unfortunate financial plight is
not the result of untoward events nor
of conditions related to our natural re-
sources, nor is it traceable to any OF
our Affections which frequently check
national growth and prosperity. With
plenteous crops, with abundant prom
Use of remunerative production and
! ,,f.
to safe investment and with satisfac-
tory assurance to business enterprises,
suddenly financial distrust and fear
have spread upon every side.
Numerous money institutions have
suspended because their abundant as
sets have not Immediately been avail
able to meet the demands OF fright
ened depositors. Surviving corpora
tions and individuals are content to
| keep in hand the money they are us
ually anxious to loan, and those en-
gagged in legitimate business are sur
prsed to find that the securities they
offer for loans, though heretofore salts
factory, are no longer accepted. Val
ues supposed to be fixed are fast be-
coming conjectural and loss and fail
ure have invaded every branch of bust
ness.
COINAGE LAWS THE CAUSE.
believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage by
the general government. This legisla-
ton is embodied in the statute passed
July ii, 1890, which was the culmina-
ton of much agitation 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 conserva-
tive.
Undoubtedly the monthly purchases
by the government of 1900, 600 ounces
of silver forced under that statute
we're regarded by those interested in
silver mining as a certain guarantee of
its increase in price. The result, how
ever, has been entirely different, for
Immediately following the 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 re-
suit has led to renewed and persistent
effort in the direction of free coinage.
Meanwhile not only are the
EVIL EFFECTS
OF the operation of the present law
constantly accommodating, but the re-
suit to which its execution must inevi-
tably lead is becoming palpable to all
who give the least heed to the finan-
cial subject. The law provides that in
payment for 100000 ounces of silver
bullion, which the Secretary of the
Treasury is commanded to purchase
monthly, there shall be issued treasury
notes redeemable ON demand in gold
or silver coin as desired, and thai said
notes may be reissued.
1t is. however, declared in the act
to be "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 as may be provided by law"
This declaration so controls the &C.
ton of the Secretary of the Treasury
as 10 prevent his exercising the dis
cretion nominally vested in him, if by
such action the parity between gold
and silver may be disturbed. Mani
testify the refusal by the Secretary to
pay these treasury notes in gold, if
demanded, would necessarily result in
their discredit and depreciation as OBJ
legations payable only in silver, and
would destroy the parity between the
two metals by establishing the dis
elimination in favor Of gold.
UNCoINED BULLION.
Up to July Is, 1893, these notes had
been issued in payment OF silver bullion
purchased to the amount of more than
$148, 900 900. while all but very small
quantity of this bullion remains I'M
coined and without usefulness in the
treasury, and many oil the notes given
for its purchases have been paid in
gold.
This is illustrated by the statement
that between May !, 1892. and July Is,
1893, the notes OF this kind issued in
payment for silver bullion amounted
to little more than $4,000 900, and
that during the same period about
| Y1OSOOOVVO WuS pnlu ny tuc treasury
in gold for the redemption of such
notes.
The policy necessarily adopted of
paying these notes in gold has not
spared the gold reserve of 500, 600 900,
long ago set aside by the government
for redemption of other notes, for this
fund has already been subjected to
payment of new obligations amount.
ing to about $3.50, 600, 600, on account
of silver purchases, and has, as con-
sequence. for the first time since its
creation been encroached upon.
EXCESS OF GOLD EXPORTS.
We have thus made the depletion OF
our gold easy, and have asked other
and more appreciative nations to add it
to their stock. That the opportunity
we have offered has 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 ma
tons. The excess of exports of gold
over its imports for the year ending
June 80. 1898, amounts to more than
$S7 500 900.
Between July l, 1892, and July Is,