The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1893-08-11
THE PRESIDENTS MESSAGE
Urges Repeal Of the Silver
Clause.
TARIFF A SECONDARY MATTER.

President Cleveland's message, which was
read to both houses of congress Tuesday at
noon, is as follows:
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 peo-
ple's representatives in congress, to the end
that, through the wise and patriotic exercise
of the legislative duty with which they are
charged, the present evils may be mitigated
and the dangers threatening the future may
beavoided.
Our unfortunate financial plight is not the
result Of untoward events nor of conditions
related to our natural resources, nor is it
traceable to any of the Affections which frc-
quently check national growth and prosperi-
ty. With pienteous crops, with abundant
promise of remunerative production and
manufactures, with unusual invitation to safe
investment and with satisfactory assurance
to business enterprise, suddenly financial dis.
trust and fear have sprung up on every side.
Numerous monetary institutions have sus-
ptutltu UcCduse dSSctS WCTC ilOJ I'LL
mediately available to meet the demands. of
frightened dcpositors. The surviving corpo-
rations and individuals are content to keep in
hand 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 haveinvaded every branch of bus
iness. I believe these things are principally
chargea ole to congressional legislation touch
ing purchase and coinage of silver by the
general government. This legislation is en-
bodied in the statute passed July IA, 1880,
which was the elimination of mu CHI agitation
on the subject involved, ana which may be
considered as truce, after long struggle, be-
tween the advocates of free silver coinage and
those intending to be more conservative. I'm
douttedly the monthly purchases by the gov
ernment of 4.500, 600 ounces of silver. forced
under that statute, were regarded by those in
terested in silver production as a certain
guarantee of its increase in price. The re-
suit, however, has been entirely different, for,
Immediately following spasmodc 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 disappoint-
ing result has led to a renewed and persistent
effort in the direction of free silver coinage.
Meanwhile, not only are the evil effects of the
present law constantly accumulating, but the
result to which its execution must evidently
lead is becoming palpable to all who give the
least heed to the financial subject. This law
provides that in payment for 4.500, 600 ounces
of silver bullion, which the secretary Of the
treasury is commanded to purchase monthly,
there shall be issued treasury notes redeema-
Bile on demand in gold or silver coin, at
the discretion of the secretary Of the treasury
and that SAID notes may be reissued. 1t is,
however, declared in the act to be "thc estab-
lished policy of the United States to maintain
the two metals on a parity. with each other on
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 dis
cretion nominally vested in him. if by such
action the parity between gold and silver may
be disturbed. Manifestly refusal by the
secretary to pay these notes in gold as deman'
ded would necessarily result in their discredit
in silver, and would destroy the parity be-
tween the two metals by establishing dis
elimination in favor Of gold. Up to July Is,
1898. these notes had been issued in payment
for silver bullion purchased, to the amount of
more than sr47, 900, ,Oo0. While all but very
small quantity of this bullion remains un-
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 May l, 1892, and July
Is, 1898. notes of this kind issued in payment
for silver bullion amounted to little more
than S54 600 900, and that during the same pc
riod about s49, ,ooo, GOO was paid by the treasu
ry in gold for the redemption of such notes.
The policy necessarily adopted Of paying
these notes has not spared the gold reserve OF
Of $l0o, 600, GOO long ago set aside by the gov
ernment for the redemption of other notes,
for this fund has already been subjected to the
payment of new obligations amounting to
about Sl50, ,000, 900 on account of silver pur-
chases. and has, as consequence, for the first
time since its creation been encroached upon.
We have thus made the depletion of our gold
easy, and have asked other and more appre
ciative 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 fin
ancial strength of foreign nations.
The of exports Of gold over its i'm
ports for the year ending June 80, 1898,
amounts to more than SS7, SOC, 900. Between
July !, 1892, and July Is, 1898, the gold coin
and bullion in our treasury decreased more
than $132, ,000, 600, while during the same Pc
riod silver coin and bullion in the treasury
increased more than $l47, 100000. Unless
government bonds are to be constantly issued
and sold to replenish our exhausted gold, only
to be again exhausted. it is apparent that the
operation Of the silver-purchase law now in
force leads in the direction of the entire sub
stitution of silver for gold in the government