The silver state. [volume] (Unionville, Nev.) 1870-1903, 1893-08-10
EXECUTIVE MANSION,
WAsuINGToN, August 5, ls0.

10 the congress ~ the Untted States.
The existence Of an alarming and ex-
traordinary business situation, i'm
yolving the prosperity and welfare of
all our own people, has constrained
me to call together in extra session
the peoples representatives in con-
gress, to the end that, through a wise
and patriotic exercise of legislative
duty with which they solely are
charged, the present evils may be
future may be averted.
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 frequently
check national growth and prosperity.
With plenteous crops, with an album
dant promise OF remuneratiye pro-
duetion and manufacture, with I'M
usual invitation to safe investment,
and with satisfactory assurance to
business enterprise, suddenly tinan
ciai distrust and fear have sprung
up on every side. Numerous moneyed
institutions have suspended because
abundant assets We're not Immediately
available 10 meet the demands of
frightened depositors. The surviving
corporations aud individuals are con-
tent 10 keep iii hand the money they
are usually anxious to loan, and those
engaged ia legitimate business are
surprised TO find that the securities
they offer for loans, though hereto
fore satisfactory, are no longer ac-
cepted. Values, supposed to be fixed I,
are fast becoming eonjectural, and
/ loss and failure have invaded every
branch oil business.
THE FAULT PLACED ON SILVER.
believe these things to be princi-
pally chargeable to congressional
legislation touching the purchase and
coinage oil silver by the general gov
eminent.
This legislation IS embodied ia the
statute passed on the l4th day Of
July, 1890, which was the culmina.
ton OF much agitation on the subject
involved, and which may be consid-
cred a truce, after long struggle, be-
! tween the advocates OF free silver
coinage and those intending % be
more conservative.
4 Undoubtedly the monthly pur-
J chases by the government Of 800 900
ounces OF silver, forced under that
statute, were regarded by those in
terested in silver production as GER
/ tyin guaranty Of its increase in price.
! The result, however, has been en-
/ tirely different, for Immediately fol-
lowing 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 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 operation OF the present
law constantly accommodating, but the
result To which its execution must
1 inevitably lead are becoming palpable
TO all who give the least heed to finan-
cial subjects.
This law provides that in payment
( for 4 ,500,0 900 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 sill
yer coin, at the discretion of the secre-
tary of the treasury, and that said
notes may be reissued. 1t Is, how
ever, declared in the act to be 1.-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
PREVENTED THE EXERCISE or DISCRE-
TIoN.
This declaration so controls the ac-
ton of the secretary OF the treasury
as to prevent his exercising the dis
erection nominally vested in him. Ii
by such action the parity between gold
and silver may be disturbed, mani
testify refusal by the secretary to
pay these treasury 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 pay
ment of silver bullion purchased to
the amount of $l47 100000 while all
but a very small quantity OF this bull
lion remains uncoined 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