Omaha daily bee., 1893-08-09
OUR MONEY MUST Be GOOD EVERYWHERE

WASHINGTON, Aug. S-The Presidents
message delivered to congress today is as
follows:
To THE CONGRESS OF THE UNITED STATES:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperityof all our people, has
constrained me to call together in extra
session the peoples representatives In con
gress to the end that, through the wise and
patriotic exercise of the legislative duty
with which they solely are charged, the
present evils may be mitigated and the
dangers threatening the future may be
avertcd.
Our unfortunate financial plight is not the
result of untoward events nor conditions re
lated to our natural resources, nor is it trace
able to any of the Affections which fire.
quently check national growth and pros
perity. With penteous crops, with
abundant promise of remuncrative produc-
ton and manufacture, with unusual in-
vitation TO safe Investment and with
satisfactory assurance to business enter
prise, suddenly financial diStrust and fear
have sprung up on every side. Numerous
moneycd institutions have suspended be-
cause abundant assets were not immedi-
frightened depositors. Surviving corpora
tions and individuals are content to keep in
hand money they are usually anxious to
loan. and those engaged in legitimate busi-
ness are surprised to find that securities
they offer for loans, though heretofore salts
factory, are no longer accepted. Values sup
posed to be fixed are fast becoming con-
jectural, and losses and failure have in
vaded every branch of business.
Hard Times Due to tho Sherman Law.
l believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of silver
by the general government. This legisla-
tion is embodied in statute passed on the
14th day of July 1890, which was the cul-
mination of much agitation on the subject
involved, and which may be considered u
truce, after long struggle, between the
advocates of free silver coinage and those in
tending to be more conservative. Un-
doubtedly the monthly purchases by the
government of 4,50O,O0O ounces of silver,
forced under that statute, were regarded by
those interested in silver production as a
certain guaranty of its increase in price.
The result, however, has been entirely diff
ferent for Immediately following the
spasmodic and Slight rise the price of silver
began 10 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
direction of free silver coinage.
Meanwhile, not only are the evil effects of
the operation of the present lawconstantly
accommodating. but the result to which it's
execution must inevitably lead is becoming
palpable to all who give the least heed to
.,t,1p l;- l.,,,. hat
In payment for tho $500 600 ounces of silver
bullion which the secretary of the treas
ury is commanded to purchase monthly
there shall be issued treasury notes redeem
able on demand in gold or silver coin, al 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 upon parity with
each other upon the present legal ratio, or
such ratio rs may be provided by law
Bad Feature OF the Law.
This declaration so controls the action of
the secretary of the u ,asury as to prevent
his exercising the discretion nomnally
vested in him, if by such action the parity
between gold and silver may be disturbed.
Manifcstly the refusal by the secretary to
pay these treasury notes in gold, il de-
manded would necessarily result in their
dscredit and depreciation as obligations
payable only in silver, and would destroy
the parity between the two metals by
establishing discrimination in favor of gold
Up to the 18th day of July, 1898 these
notes had been issued in the payment OF sill
yer bullion purchased to the amount of more
than Sl4I 900 900 While all but very
small quantity of this bullion romans un-
coined and without usefulness in the treas
urY 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, ana the 18TH day of July, 1898
notes OF this kind issued in payment for sill
yer bullion amounted To little more than
S5i,OOO,OOO, and that during the same period
about so O0O, 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 500 1000 900 long ago set aside by
the government for the redemption of other
notes, for this fund has already been sub
jected to the payment Qf~new obligations
amounting to about Sl50,0OO,0O0 on account
of silver purchases, and has, as a conse
quence, for the first time since its creation
been encroached upon,
Ii Caused the Drain of Gold.
We have thus made the depletion of ou
gold easy, and have tempted other and more
appreciatiye nations TO add 1t to their stock
Ihat the opportunity we offered has no
been neglected has been shown by the larg'