The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1893-08-09
4 PROMPT REPEAL
OF the Sherman Silver Pur.
chasing Act Recommend
BY President Cleveland in His
Message to Congress.

by HfeSfQenI Ol6N6idIlO III IT'S
Message to Congress.
He Holds the Law mentioned Responsible
For the Present Unfortunate Plight Into
Which This Country Has Been Plunged.
Wage Farmer Observation-Disclosures Reform
Not in Il Row.
WASHINGTON, Aug. s.-The following
is the presidents message to the extra
session of congress:
To the Congress of the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together the
peoples representatives in congress, to the
end that through wise and patriotic exer-
else of the legislative duty with which they
are charged, present evils may be mitigat
/. ed and dangers threatening the future may
be averted.
Our unfortunate financial plight is not
the result of untoward events nor of con-
ditions 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 abundant promise of remunerative
production and manufacture, with unusual
invitation 20 safe investment and with sat
isfactory assurance to business enterprise,
suddenly financial distrust and fear have
sprung up on every side.
Numerous moncyed institutions have
suspended because abundant assets were
not Immediately available to meet the de
mands of frightened depositors. Surviving
corporations and individuals are content to
keep in hand the 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 have invaded every branch
of business.
chargable 10 congressional legislation,
touching the purchase and coinage of sill
yer by the general government
This legislation is embodied III 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 a long struggle,
between the advocates of free silver coin
age and those intending to be more con
sentative.
Undoubtedly the monthly purchases by
the government of 4, SOC, 600 ounces of silver,
enforced under the statute, were regarded
by those interested in silver production as
u certain guaranty of its increase in price.
The result, however, has been entirely diff
ferent, for. Immediately following spas.
modic and slight rise, the price of silver be-
gan to fall after the passage of the act and
has since reached the lowest point ever
known. This disappointing result has led
TO renewed and persistent effort in the di-
rection of free silver coinage.
Meanwhile, not only are the evil effects
of the operation of the present law con-
stantly accommodating, but the result to
which its eBEcution must inevitably lead is
becoming I%ipable to all who give the least
heed to financial subjects.
This law provides that in payment for the
4,5OO,OOO 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 and 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
"The established policy of the United
States to maintain the two metals on a
parity with each other upon the present le-
gal 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 action
the parity between gold and silver may be
disturbed. NRnifestly a refusal by the
secretary to pay these treasury notes in
gold if demanded. would necessarily result
in their discredit and depreciation as obi
cations payable only in silver, and would
destroy the parity between the two metals
by establishing Il discrimination in favor of
gold.
Up to the 18th day of July, 1898, these
notes had been issued in payment of silver
bullion purchased, to the amount of more
than S14T 100000. While all but a very
small quantity of this bullion remains I'M
coined and without usefulness in the treas
ury, many of the notes given in its par
chase have been paid in gold. This is il
Illustrated by the statement that between
the LIST day of May, 1892, and the 18th day
of July, 1893, the notes of this kind issued
in payment for silver bullion, amounted to
a little more So, Goo, 600, and that during
the same period about $4,000, 900 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 $1,000 600 long ago set aside by
the government for the redemption of other
notes, for this fund has already been sub
jected to the payment of new obligations
amounting to about $3.50, OOO, coo on account
of silver purchases, and has, as conse.
quence, for the first time since it's creation
been encroached upon.
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 of
fered has not been neglected, is shown by
the large amounts of gold which have been
recently drawn from our treasury and ex-
ported to increase the financial strength of
foreign nations. The excess of exports of
gold over its imports for the year ending
June 30, 1893, amounted to more than $S7,
100000.
Between the LIST of July, 1890, and the
18th of July, 1893, the gold coin and bull
lion in our treasury decreased more than
SlS2, 600, 0C0, while during the same peEiod
the silver coin and bullion in the treasury
increased more than S147, 100000. Unless
government bonds are to be constantly is.
sued and sold to replenish our exhaust
ed gold. only to be again exhausted, it is
apparent that the operation of the silver
purchase law now in force leads in the di-
rection of the entire substitution of silver
for the gold in the government treasury,
cad that this must be followed by the pay.
preciated silver.
At this stage gold and silver must part
company and the government must fail in
its established policy to maintain the two
metals on parity with each other. Given
over to the exclusive use of n currency
greatly deprecated according to the stand
ard of the commercial world, we could nc
longer claim place among nations of the
first class, nor could our government claim
performance of its obligation, 80 far as