The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1893-08-10
GROVER CLEVELAND SPEAKS
Ills Eagerly Awaited Message as Sent
to Congress.
SILVER REPEAL THE FIRST OF ALL.

Charges the Country's Financial Dis
tress to the Sherman and Other
Bad Laws-Tariff Reform Remem-
bered-Pledgeso of the Chicago Con.
vention Must be Carried Out.
WASHINGTON, D. c., August $40
the Congress of the United States
The existence of an alarming and ex-
traordinary business situation, involv
ing the welfare and prosperity 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 ex-
ercise 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 is
not the result of untoward events. nor
of conditions related to our natural
resources; nor is it traceable to any of
the affections which frequently check
the national growth and prosperity.
With plenteOus crops, with abundant
promise of remuneratiye production
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
depositors. Surviving corporations
and individuals are content
to keep in hand the mon
ey they are usually anxious to loan,
and those engaged in legitimate bust
ness are surprised to find that the Sc
curities 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. / believe these things are
principally chargeable to COngressiOn-
al legislation touching the purchase
and coinage of silver by the general
government. This legislation is en-
bodied in a statute passed on the 14th
day of July. 1890, which was the Gull
mination of much agitation on the
subject involved, and which may be
considered a truce, after long strug-
gle, between the advocates of free sill
yer coinage and those intending to be
more conservative. Undoubtedly the
monthly purchases by the government
of four million and five hundred thou
sand ounces of silver, enforced 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 different, for Immediately
following 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. Mean
while, not only are the evil effect of
the operation of the present law con-
Stantly accommodating, but the result
to which its execution must inevita-
bly, lead, is becoming palpable to all
who give the least heed to financial
subjects. This 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 treas
ury notes, redeemable on demand in
gold or 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
tthe established policy of the United
States to maintain the two metals on
a parity with each other upon the
present legal ratio, or such ratio as
may be provided by law" This dec
1aratiOr so controls the action of the
Secretary of the Treasury as to pre-
inally vested in him, if, by such &C
tion, the parity between gold and sill
yer may be disturbed. Manifestly a
refusal by the secretary to pay these
treasury notes in gold, if demanded,
would necessarily result in their dis
credit and depreciation as obligations
paya BILE only in silver, and would de-
stroy the parity between the two met
ais by establishing a discrimination
in favor of gold.
Up to the fifteenth day of July, 1898,
these notes had been issued in pay
ment of silver bullion purchases, to
the amount of more than one hundred
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 giXen in its pur-
chases have been paid in gold. This
is illustrated by the statement that
between the first day of May, 1892, and
the 18th day of July, 1898, the notes
of this kind issued in payment for
more than fffty-four millions of dol
lars. and that during the same period
about forty nine millions of dollars
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 dol
lars long agr seL aside by the govern
ment for tue redemption of other
notes, for this fund has already been
| subjected to the payment of new obi
| bred and fifty million dollars on &C
| count of silver purchases, and has in
| consequence for the first time since its
| creation, been encrOached upon. We
| have thus made the depletion of oul
| gold easy, and have tempted other anC
| more appreciatiYe nations to add it tt
| their stock. That the opportunity we
| have offered has not been neglected, i:
shown by the large amounts of golC
which have been recently drawn from
| our Treasury and exported to increase
the financial strength of foreign ma
| tions. The excess of the exports o
gold over its imports for the year end
| ing June 30, 1893, amounted to NOR,
] than eighty-seven and half millions
| of dollars.
Between the arst day of July, 1890
| and the fifteenth day of July, 1898, TIN
gold coin and bullion in our treasur,
decreased more than one hundred ant
thirty-two millions of dollars, Will
during the same period the silver coil
and bullion in the treasury Increases
more than one hundred and forty
seven millions of dollars. Unles
bonds are to be constantly issued an,
sold Go replenish our exhausted gold
only to be exhausted again, it is az
parent that the operation of the sill
yer purchase OF the law now in force
| jaa6C in tho diropti0p of tho apfir