Passaic City record., 1893-08-12
The MESSAGE.
President CleVeland's Recon-.
mendations to Congress.
NOT A PARTY MATTER.
Urging the Immediate Repeal
OF the Sherman Law.

Silver Legislation is Declared the
Cause of the Present Crisis-Evil
Effects of the Present Law Are
Asserted to be Constantly Ac-
cumulating-Tar Reform Ur-
gent, But 1t Must Wait Until the
Financial Difficulty is Overcome.
President Cleveland has sent this message
to the special 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 an extra ses-
sion OF the peoples representatives, in Con-
gress, to the end that through 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 averted
FINANCIAL SITUATION EXCEPTIONAL.
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 aflictions which fre-
quently check National growth and pros
perity.
With plenteous crops, with abundant prom
ise of remunerative production and manu-
facture with unusual invitation to safe in
vestment and with satisfactory assurance to
business enterprise, suddenly financial dis
trust and fear have sprung up on every side.
Numerous moneyed institutions have sus-
pended because abundant assets were not
Immediately available to meet the demands
of the frightened depositors.
BUSINESS CREDIT WEAKENED
Surviving corporations and individuals are
content to keep in land 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 satisfact Dry, are no longer
accepted. Values supposed to be fixed are
fast becoming conjectural, and loss and
failure have involved every branch of busi-
ness.
LEGISLATION TO BLAME.
believe these things are principally
chargable to Congressional legislation touch
ing the purchase and coinage of silver by the
general Government.
THE SHERMAN LAW.
This legislation is embodied in statute
passed on the 14th day of July, 1890, which
was elimination of much agitation on the
subject involved, and which may be consid-
cred truce after a long struggle, between
the advocates of free silver coinage andthose
intending to be more conservative.
Undoubtedly the monthly purchases by the
Government of 800 900 ounces of silver en-
forced under the statute were regarded by
those interested in silver production as GER
tain guaranty of its increase in price.
THE FALL IN SILVER.
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
direction of free silver coinage.
EVIL EFFECTS OF THE Law.
Meanwhile not only are the evil effects OF
the operation of the present law constantly
aecumulating, but the result to which its
eAecution must inevitably lead is becoming
palpable to all who give the least heed to
financial subjects.
ITS PROVISIONS.
The law provides that in payment for the
four million and five hundred thousand
ounces of silver bullion which the Secretary
of the Treasury is commanded to purchase
monthly, there shall be issued Treasury
notes redeemable or demand in gold or sill
yer 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 1.-The established policy of the United
States to maintain the two metals on par
ity with each other, upon the present legal
ratio, or such ratio as may be provided by
law"
TREASURY HAMPERED BY THE LAW.
This declaration so controls the action of
the Secretary of the Treasury to prevent his
exercising the discretion nominaliy vested in
him, if by such action the parity between
gold and silver may be disturbed.
Manifestly, a refusal by the Secretary to
pay these Treasury notes in gold, If de-
manded, would necessarily result in their
discredit and depreciation as obligations
payable only in silver, and would destroy the
parity between the two metals by establish.
ing discrimination in favor of gold.
Up to the 10Th day of July. 1898. these
notes had been issued in payment OF silver
bullion purchases to the amount OF more
than $147, ,000,O 900.
While all but very small quantity of this
bullion remains uncoined and without use
fulness In the Treasury, many OF the notes
given in its purchase have been paid in gold.
GOLD RESERVE NOT SPARED.
The policy necessarily adopted of paying
these notes in gold has not spared the gold
reserve of $100, ,000, 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 OF new obligations,
amounting to about $150, ,000, 900 on account
ofsilver purchases, and as consequence for
the first time since its creation been en-
croached upon.
OTHER NATIONS PRoFITED.
We have thus made the depletion of our
gold easy, and have tempted other and more
appreciative Nations to add 1t to their stock.
That the opportunity we have offered has
not been neglected is shown by the large
amounts Of gold which have been recently
drawn from our Treasury, and exported to
increase the financial strength OF foreign
Nations. The excess of exports Of gold over
its imports for the year ending June 80, 1898,
amountedto more than s87, 500, 900.
THE SILVER DANGER.
Between July /, $780, and July Is, 1898.
the gold coin and bullion in our Treasury