The sun., 1893-08-17
THE PRESIDENTS MESSAGE
THE FINANCIAL QUESTION DEALT
WITH AT LENGTH.
The Sherman Law Must he Repealed
Says the Presldent-The People De-
mand a sound and stable Currency
-TariR Reform VIII Come Later.

The Sherman Law Must De Repealed
Says the Presldent--The People De-
mand N sound and Stable Currency
Tariff Reform WtlI 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 il as follows:
To the Congress of the United States:
The existence of an alarming, an extra
ordinary business situation, lnyolVlhs tue
welfare and prosperity OF all our people
has constrained me to call together III eA-
ira session the peoples representative ln
congress. to the end that through wise
and patriotic exercise of the Legislative
duty with which they solely are charged,
present evils may be mitigated ana Dan
gers threatening the future may De
averted.
Oar Tneortunnte Financial Plight
is not the results of untoward events nor
of conditions related to our natural re-
sources; nor is it traceable TO any OF the
Affections which frequently checK ma
tional growth and prosperity. WIN
pleanteous crops, with abundant promise
of remunerative production ana manu-
facture: with unusual invitations 10
safe Investment with satisfactory as
surances to business enterprise, suddenly
financial distrust and fear have sprung
upon every side. Numerous moneyeu
institutions have suspended because thelr
abundant assets were not Immediately
available to meet the demands OF 1righ-
tened depositors; surviving corporations
and individuals are too content 10 keep
| in hand the money they are usually anH-
IeRlGl-
mate business are surprised to hnd that
the securities they offered for loans,
though heretofore satisfactory, are no
longer accepted. Values supposed to De
fixed are fast becoming conjectural, ana
loss and failure have invaded every
branch of business. / believe these things
are principally chargeable to congression.
| al legislation touching the purchase and
coinage of silver by the general govern
ment.
This legislation is embodied in sta
tute passed on the 18th day of July, 1890,
which was the elimination of much agl-
tation on the subject involved, and which
NAV ha considered a truce after the long
| struggle between the advocates OF free
silver coinage and those intending to De
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 a certain guaranty OF ats
| increase in price. The result, however
| has been entirely different, for lmmedi-
ately following q spasmodic and sllgnt
| 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 dlfec-
ton of free silver coinage.
| Meanwhile, not only are the eVll ell
| fects of the operation of the present law
| constantly accumulating, 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 law provides that in payment OF
the 45OO,O0O ounces of silver bullion
| 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 Q1 the
treasury, and that the said notes may oe
/ reissued. 1t is, however,, declared m
/ the act to be ssthe established policy Oh
| the United States to maintain the two
| meals upon parity with each other
| upon the leprtesraletragn,O ,OiOelviransrOdX
| unon 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 tC
| prevent his exercising the discretion nom
| inally vested in him, if by such action the
parity between gold and silver may be
| disturbed Manifestly a refusal by the
| secretary to pay these treasury notes III
| 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 a discrimination in favor q
gold. .ooo
| Up to the 18th day of July, 1893, these
notes had been issued in payment of sill
yer bullion purchased to the amount Of
more than one hundred and forty sever
millions of dollars. While all but very
small quantity of this bullion remains un
coined and without usefulness IN thu
treasury, many of the. potes given III in it,
purchase have been paid in gold. This i!
illustrated by the statement that betweer
the 1st day of May, 1892, and the 15tl
day of July, 1893, the notes of this kint
issued in payment for silver bulliOr
amounted to little MORE than $4,000,
900, and that during the same periot
about $40 100000 were paid by the treas
ury in gold for the redemption1 Of sucf
notes.
The policy necessarily adopted of pay
ing these notes In gold has not spared
the gold reserve of $1O0,OOO,OO0 long age
set aside by the government for the re
demption of Dther notes, for this fun{
has already been subjected to the pay
ment of new obligations amounting t.
about $150,OOO,OO on account of silvel
purchases, and has as consequence, fOl
the first time since its creation, been en-
croached upon. We have thus made tn,
depletion of our gold easy, and have
tempted other and more appreciative ma
tions to add it to their stock. That thu
opportunity we have afforded has no
been neglected is shown by the larg,
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 O.
gold over its imports for the year ending
June 80, 1893, amounted to over SS7,
100000. Between the LIST day of July
1890, and the 10th day of July, 1893
the gold coin and bullion in our treasur!
decreased more than $132, 100000, Whill
during the same period the silver coin ans
bullion in the TREASURY increased NOR,
than $147, 100000. Uuless government
bonds are to be constantly issued and SOLE
to replenish our exhausted gold, only t,
to be again exhausted, it Is apparent tha
the operation of the silver-purchasa Law
now in force leads in the direction of tn,
the government treasury and that thi
must be followed by the payment of oil
government Obligations in deprecated
silver.
Gold and Silver Must Part Company
end the government must fall in its es
tablished policy to maintain the two met
ais on parity of each other. Given owe
to the exclusive nse of q currency great,
deprecated according to the standard o
the commercial world we could no longe
claim q place among the nations of th
first class, nor could our government
claim a performance of it's obligation, s.
far as such an obligation has been i'm
posed upon it, to provide for the use O
the people the best and safest money. II
as many of it friends claim, silver ough
to occupy higher place in our currenc,
and the currency of the world through
| general
international Co-operation
and agreement, it is obvious that th
United States will not be in a position
to gain hearing in favor of -uch al
: arrangement so long as we are willin,
to continue our attempt to accomplish