Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-08-16
THE PRESIDENTS MESSAGE.


and prosperity of all our people, has con-
strained me to call together in extra session
the peoples representatives. in congress to the
end that through wise and patriotic exercise
Of the legislative duty with which they are
solely charged, present evils may be mitigated
and dangers threatening the future may be
averted.
Our unfortunate financial plight is not the
result Of untoward events or of conditions re-
lated to our national resources; nor is 1t trace
able to any OF the af1ictions which frequently
check national growth and prosperity. With
plenteous crops, with abundant promise OF re-
muneratiye production and manufacture with
unusual invitation to safe investment and with
satisfactory assurance to business enterprise,
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 money they are usually anx-
ious to loan. and those engaged in legitimate
business are surprised to find that the securi-
ties they offer for loans. though heretofore sat-
factory, are no longer accepted Values sup
posed to be fixed are fast becoming conjectural
and loss and failure have invaded every branch
of business.
believe these things are principally charge
able to congressional legislation touching the
purchase and coinage of silver by the general
statute passed on the 18th day OF July, 1890,
which was the elimination OF much agitation
OF the subject involved and which may be con.
sidered truce after the long struggle between
the advocates of free silver coinage and those
intending to be more conservative.
Undoubtedly the monthly purchases by the
government of 500, 900 ounces of silver forced
under that statute were regarded by those In
terested in silver production as a certain guar
snty OF Its increase in price. The result how
ever, has been entirely different for immedi-
ately following q spasmocic 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 effects of
the operation Of the present law constantly &C.
cumulating, but the result to which its execu-
ton must inevitably lead, is becoming palpable
to all who give the least heed to financial sub
jects
This law provides that in payment for the
45O0,0O0 ounces Of silver bullion which the Sec
rotary OF the treasury is commanded to pur-
chase monthly there shall be issued treasury
notes redeemable on demand in gold or silver
CON- at the discretion of the secretary of
the treasury, and that the 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 as may be provided by law"
This declaration SO controls the actions
OF the secretary of the treasury as to
prevent his exercising the discretion nominally
vested in him If By such action the parity be-
tween gold and silver may be disturbed. Mani
testify, refusal by the secretary to pay these
treasury notes in gold il demanded would
necessarily result in their discredit and de.
probation, as obligations payable only in sill
yer, and would destroy the parity between the
NtrO hr ,1iub
favor of gold.
Up to the 18th day of July, 1893 these notes
had been issued in payment Of silver bullion
purchased to the amount Of more than Sl47, O00,-
OOo While all but very small quantity OF
this bullion romans uncoined and without use
fulness in the treasury many of the notes
given in its purchase have been paid in gold
This is illustrated by the statement that be-
tween the LIST of May, 1892 and the 18th day of
July, 1893, the notes of this kind issued in pay.
ment for silver bullion amounted to a little
more than So, 200. 900, and that during the same
period about s49, 900 were paid by the treas
ury in gold for the redemption of such notes
The policy necessarily adopted of paying
these notes in gold has not spared the gold re-
serve of 100000, 000 long ago set aside by the
government for the redemption of other notes,
for this fund has already been subjected to the
payment of new obligations amounting to about
sI10,O0oO0O on account of silver purchases, and
has as consequence, for the first time since its
creation, been encroached upon.
Ave have thus made the depletion of our gold
easy and have tempted other and more appre.
ciative nations to add it to their stock That
the opportunity we have offered has no. 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 ex-
cess of exports OF gold over its imports for
the year ended June 3d. 1893, amounted to
Ratr fha Arot
of January, $780, and the 15t day Of July 1893,
the gold coin and bullion In our treasury de-
creased more than 1882 200, 900, while during
the same period the silver coin and bullion in
the treasury increased more than St47, 900, O00.
Unless government bonds are to be constant
iy issued and sold to replenish our exhausted
gold, only to be again exhausted, it is apparent
that the operation of the silver purchase law
noy in force leads in the direction Of the entire
substitution Of silver for the gold in the gov:
eminent treasury and that this must be fol-
lowed by the payment of all government obi.
cations in deprecated silver.
At this stage gold and silver must part COM
pany and the government must fail in its es tab-
hshed policy to maintain the two metals on a
parity with each other.
Given over to the exclusive use of a cur
rency greatly deprecated according to the
standard of the commercial world, we could
no longer claim a place among the nations Of
the first class nor could our government claim
0 performance of its obligation, so far as such
an obligation has been imposed upon it, TO
provide for the use of the people the best and
safest money. If, many of it's friends claim
silver ought to occupy higher place in our
currency and the currency Of the world through
general international Co operation and agree
ment 1t is obvious that the United States will
not be in a position to gain hearing in favor
Of such an arrangement so long as are will
ing to continue our attempt to accomplish the
result single handed.
The knowledge in business circles among our
own people that our government cannot make
its fat equivalent to intrinsic values nor keep
inferior money on parity with superior money
by its own independent efforts has resulted in
such lack of confidence at home, in the
stability of currency values that capital refuses
Its aid TO new enterprises while millions
are actually withdrawn from the channels Of
trade and commerce to become idle and unpro-
ductive in the hands of :imid owners. Foreign
investors, equally alert, BOT only decline to
purchase American securities, but make haste
to sacrifice those which they already have
1t does not meet the situation to say that ap
prehension in regard to the future of our
finances is groundless and that there is no
reason for lack of confidence in the purposes
or power OF tle government in the premises
The very existence OF this apprehension and
lack OF confidence, however caused, Is menace
which ought not for moment DE disregarded
Possibly II the undertaking we have in hand
were the maintenance OF SPECIFIC known
quantity of silver at parity with gold, our
ability TO do so might be estimated and gagged
and perhaps, in view of our unparalleled grow III
and resources, might be faEorabiy passed upon.
But, when our avowed endeavor Is to maintain
such parity In regard to an amount OF silver in
creasing at the rate Of S50,00o,0O0 yearly, with
fixed termination to such increase. it can
hardly be said that a problem is presented
whose solution is free from doubt
The people of the United States are entitled
to a sound ana sl&bls currency anu to money
recognized as such on every exchange and in
every market of the world Their government
has no right TO injure them by financial expert
ments opposed to the policy and practice of
other civilized states. Nor IS 1t justified in
permitting an exaggerated and unreasonable
reliance on our national strength and ability 10
jeopardize the soundness Of the peoples money.
This matter rises above the plane of party
politics 1t yitally concerns every business and
calling and enters erer7 household in the land
There is one important aspect OF the subject
which especially should never be overlooked