The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1893-08-16
THE MESSAGE
As Read to the Extra Session Of
Congress.
4 SHORT BUT POINTED DOCUMENT.

4 SHORT BUT POINTED DOCUMENT
The Two Houses Organized and Begin
ming the Works for Which
They Were Called To-
WASHINGTON, D. c., August s.-The
Senate and House were organized yes
terday as agreed upon at the Demo
cratic caucus.
At noon to-day the Presidents mes
sage was received and read as follows
WASHINGTON, August 8, 1893.
To the Congress Of the United States:
The existence of an alarming ano
extraordinary business situation, in:
volving the welfare and prosperity Of
all our people, has constrained me tc
call together, in extra session, the peo
pies representatives in congress, tc
the end that through wise and patri
otic 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 averted.
OUR UNFORTUNATE FINANCIAL. PLIGHT
Il not the result of untoward events
nor of conditions related to our ma
tural resources, nor is it traceable to
any OF the Affections which frequently
check natural growth and prosperity
With plenteous crops, with abundant
promise of remunerative production
, and manufactures, with unusual invi'
tation to safe investment and with
satisfactory assurance to business en-
terprise, suddenly financial distrust
and fear have sprung up on every side
Numerous moneyed institutions have
. suspended because abundant assets
were not Immediately available to
meet the demands of frightened de,
positors. 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. I believe these things are
PRINCIPALLY CHARGEABLE TO CONGRESS
sIoNAL LEGISLATION
touching the purchase and coinage OF
silver by the general government.
This legislation is embodied in stat
ute 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
q long struggle between the advocates
OF free silver.coinage and those intend
Ing to be more conservative.
Undoubtedly the monthly purchase
Of the government of four million and
FIVE hundred thousand ounces of silver,
enforced under that statute, were re-
earded by those interested in silver
production as a certain guarantee OF
its increase in price. The result. how
ever, has been entirely different, for
immediately following a 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 renewed and persistent effort in
the direction of free silver coinage.
Meanwhile, not only are the evil ef-
fects Of the present law constantly &C
cumulating, but the result to which its
execution must inevitably lead is be-
coming palpable to all who give the
least heed to financial subjects. This
law provides that in payment tor the
4,5OO, 600 ounces of silver bullion which
the secretary Of treasury is command
ed to purchase monthly, there shall be
issued treasury notes redeemable on
demand In gold or silver coin, at the
discretion of the secretaty Of the treas
ury, and that said notes, may be reis'
sued. 1t is, however, declared in the
ect to be 1.-The established policy of the
United States to maintain the two
metals on a parity with each other
epon the present legal ratio or such
ratio as may be provided by law"
This declaration so controls the ac-
ton of the secretary of the treasury as
to prevent his exercising the discretion
nominally vested in him, if by such ac-
ton the parity between gold and sill
yer may be disturbed. Manifestly q
refusal by the secretary to pay these
treasury notes in gold, if demanded,
would necessarily result in their dis
credit and depreciation as obligations
payable only in silver, and would des-
troy the parity between the two met
ais by establishing discrimination in
favor Of gold. Up to the 18th day Of
July, 1893, these notes had been issued
In payment of silver bullion purchases
to the amount of more than one hun
dred and forty-seven millions of dollars.
While all but very small quantity
Of this bullion remains uncoined and
without usefulness in the treasury,
many of the notes given in its purchase
have been paid in gold. This Is illus
trated by the statement that between
May 1st, 1892, and the 18th day of July,
1898, the notes of this kind issued in
payment for silver bullion amounted
70 little more than fifty-four millions
Of dollars, and that during the same
period about fortY-nine millions of dol
lars were paid by the treasury in gold
for redemption of such notes.
The policy necessarily adopted of
paying these notes in gold has not
spared the gold reserve of one hundred
millions of dollars long ago set aside
by the government for the redemption
of other notes, for this fund has already