The record-union., 1893-08-09
Special to the REcoRD-UN1oS.

WASHINGTON, Aug. 8.-Following is
the message of the President to the special
session called to legislate on the financial
condition of the country:
ITO the Congress Of the United States:
The existence of an alarming and extra
ordinary business situation, involving
the welfare and prosperity of all our peo-
pie, has constrained me to call together
IN extra session the peoples representa-
tIyes in Congress, to the end that through
the wise and patriotic exercise of legis-
lative duty with which they solely are
charged, the present evils may be miti-
gated and the dangers threatening the
future may be averted. Our unfortunate
nnancial plight is not the result of un-
toward events nor of conditions related
to our natural resources; nor is it trace
able TO any of the afflictions which fire.
quently check national growth and pros
perity.
with plenteous crops, with abundant
promise OF remunerative production and
manufacture, with unusual invitation to
safe investment, and with a satisfactory
assurance to business enterprise, sud
denly financial distrust and fear have
sprung up on every side. Numerous
moneyed institutions have suspended,
because abundant assets were not imme-
diately available to meet the demands of
frightened depositors. Surviving corpo-
-ations and individuals are content to
keep in hand money they are usually
anxious to pay, and those engaged in
legitimate business are surprised to find
IN al ri =,
heretofore satisfactory, are no longer ac-
cepted. Values supposed to be fixed are
last becoming conjectural, and loss and
failure have invaded every branch of
business.
II believe these things principally
chargeable to congressional legislation
touching the purchase and coinage of sill
yer by the General Government. This
legislation is EN- bodied in statute passed
on the 18th day of July, 1890, which was
the elimination OF much agitation on
the subject involved, and which may be
considered truce. after long struggle.
between advocates of free silver coinage
and those intending to be more conserva-
tive. Undoubtedly the monthly pur-
chases by the Government of four mill
ION five hundred thousand ounces of sill
yer, forced under that statute, were re-
garded by those interested in silver pro-
ducrion as a certain guarantee of its in
crease in price. The result, however.
has been entirely different, for immedi-
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
fects of the operations of the present law
constantly accumulating, but the result
to which its execution must inevitably
lead is becoming palpable to all who give
the least heed to financial subjects.
"This law provides that in payment
for four million five hundred thousand
ounces of silver bullion, which the Sec
retary of the Treasury is commanded to
purchase monthly, there shall be issued
Treasury notes redeemable on demand
in gold or silver coin, at the discretion of
the Secretary of the Treasury, and that
said notes may be reissued. It is, how
EsSls uCtIdl SAl III bllG kAtL W D6 IlG eSIaD-
lished 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
action OF the Secretary of the Treasury as
to prevent his exercising the discretion
nominally vested in him, if by such ac-
ton the parity between gold and silver
may be disturbed. Manifestly, the re-
fusal by the Secretary to pay these Treas
ury 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 establishing a
dis elimination in favor Of gold.
up to the 18th day of July, 1898, these
notes had been issued in payment of sill
yer bullion purchases to an amount of
more than one hundred and forty-seven
millions dollars, while all but a very
small quantity of this bullion remains
uncoired 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 lst day of May, 1892, and the
18th day of July, 1898, the notes of this
kind issued in payment for silver bullion
amounted to a little more than fifty-four
millions dollars, and that during the
same period about forty-nine millions
dollars were paid 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
gold reserve of one hundred millions dol
lars long ago set aside by the Govern
ment for the redemption of other notes,
for this fund has already been subjected
TO payment of new obligations amount
ing to about one hundred and fifty mill
ions dollars on account of silver pur-
chases, and has, as consequence, for the
first time since its creation been en-
croached upon.
1--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 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 nations.
The excess of exports of gold over its
imports for the year ending June 80, 1898,
amounted to more than elghty-seven and
a half millions of dollars. Between the
first day of July, 1890. and the 18th day of
July 1893, the gold coin and bullion in
our treasury decreased more than one
hundred and thirty-two millions of dol
lors. while during the same period silver