The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-08-09

Which Every Household Is Concerned.
Washington, August s.-Following s. is
the full text of President Cleveland S mes
sage to Congress delivered at noon to-
day:
To the Congress of the United States:
The existence of an alarming business
situation involving the welfare and pros
perity of all our people, has constrained
me to call together in extra session the
peoples representatives in Congress, to
the end that through a wise and patriotic
exercise of the legislative duty with
which they solely are charged, present
evils may be mitigated and dangers
threatening the future may be avoided.
Our unfortunate financial plight is not
the result of untoward events nor of con-
ditions related to our national 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 un-
| usual invitation to safe Investments,
and with satisfactory assurance to busi-
ness enterprise, suddenly financial dis
trust 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 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 securities they
offer for loans, though heretofore salts
factory, are no longer accepted. Values
supposed to be fixed are fast becoming
conjectural, and loss and failure have
involved every branch of business
1 believe these things are principally
changeable to congressional legislation
touching the purchase and coinage of
silver by the general government. This
legislation is embodied in statute
passed on the 18th day of July, 1890,
which was the elimination of much
agitation of the subject involved, and
which may be considered truce after
long struggle between the advocates of
free silver coinage and of those intending
to be more conservative.
Undoubtedly the monthly purchases by
the government of four million five
hundred thousand ounces of silver, en-
forced under this statute, were regarded
by those interested in silver production
as a certain guaranty of it's increase in
price. The result, however, has been en-
tirely different for Immediately follow
ing 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 disap-
pointing 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 law con-
stantly accommodating, but the result to
which it's execution must inevitably lead
is becoming palpable to all who give
the least heed to financial subjects. The
law provides that in payment for the
four million five hundred Thousand
ounces of silver bullion, which the secre-
of tba troo iS Q6 In
purchase monthly, there shall be issued
treasury notes redeemable on demand in
gold or silver at the discretion of the sec
retary 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 at a parity with each
other upon 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 to pre-
vent his exercising the discretion nomi-
nally vested in him if by such action
the parity between gold and silver may
be disturbed Manifestly refusal by
the secretary to pay these treasury notes
in gold, if demanded, would necessarily
result in their discredit and depression
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, 1858, these
notes had been issued in payment Of sill
yer bullion purchased to the amount of
more than S147, 100000. While all but
very small quantity of this bullion re-
mained uncoined and without usefull-
ness in the treasury, many of the notes
given in the purchase have been paid in
gold Thus is illustrated the statement
that between the 1st day of May, 1922,
and the 18th day of July, 1898, the notes
of this kind issued in payment for silver
bullion amounted to little more than
S54, 900, 600 and that during the same
period about $40, 000,0 900 were paid by the
treasury in gold for the redemption of
such notes.
The policy necessarily adopted of pay
ing the notes in gold has not spared the
gold reserve of one hundred millions of
dollars long ago set aside by the govern
ment for the redemption of other notes;
for this fund has already been subjected
to the payment of new obligations
amounting to about $50 millions on ac-
count of the silver purchase and has, as
a consequence, for the first time aimee its
creation been encroached upon.
We have thus made the depletion of our
gold easy and have tempted other more
appreciative nations to add to their
stock That the opportunity we have