The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-08-09
THE MESSAGE.
In Favor of a Gold
Standard.
MR.. CLEVELAND'SIDEA
Silver Men Will Fight
to the Death.
SUGGESTS NO COMPROMISE.
The Sherman Act Must Be Re-
pealed.
THAT CAUSES ALL THE TROUBLE.
This Country Cannot Carry the
Double Standard Against the En-
tire Commercial World.
The Sherman Act Must Be Re-
pealed.
THAT CAUSES ALL THE TROUBLE.
Special to The MORNING CALL.

WASHINGTON. Aug. Sin the House,
after the reading of the journal, a recess
was taken till - As P. NJ, pending the re-
ceipt of the Presidents message. the joint
committee of the two Houses having un-
avoidably been delayed in the business of
notifying the chief magistrate that Con-
greSs was organized and ready to hear
from him. When the House reconvened
the Presidents message was received and
read. 1t was as follows:
To the Congress Of the United States ::
The existence OF an alarming and extraor-
binary business situation, involving the
welfare and prosperity of all our people.
has onstrained me to call together in
extra session the peoples represen tatives
in Congress. to the end that through wise
and patriotic exercise of the legislative
duty with which they solely are charged.
present evils may be mtigated and the
dangers threatening the future may be
aver;ed.
Our unfortunate financial plight is not
the result of untoward events nor of coD-
ditions related to our natural resources.
nor is il 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 unusual
invitation TO safe Investment, and with
satisfactory assurance to business enter
prise, suddenly financial distrust and
fear have sprung up on every side, numer-
Gus moneyed institutions have suspended
because abundant assets possessed were
not Immediately available to meet the de-
mands of frightened depositors. surviving
corporations and individuals are content
to keep in hand the money they are
usually anxious 20 loan. and those en-
gagged in legitimate business are surprised
10 find that the securities they offer for
loans. though heretofore satisfactory. are
no longer accented Values supposed to
be fixed are fast becoming cOnjectural, and
loss and failure have invaded every branch
of business.
| believe that these things are princi-
pally chargeabe to congressional legisla-
tion touching the purchase and coinage of
silver by the General Government. This
legislation is embodied in the statute
passed On the 14th day of July, 1890.
which was the culmin alton of much agita-
tion On the subject involved, and which
may be considered a truce, after long
struggle. between the advocates of free
silver coinage and those in tending to be
more conservative. Undoubtedly the
monthly purchases by the Government
of q, 100000 ounces of silver, forced under
that statute. were regarded by those inter
ested in silver production as a certain
guaranty of its increase in price. The re-
suit, however. has been entirely different,
for Immediately following spasmodic
and slight Use the price of silver began to
fall. after the passage of the act and it has
since reached the lowest point ever known
This disappointing result has led to re-
newed and persistent effort in the direc-
tion Of free silver coinage.
Meanwhile not only are the evil effects
of the operation of the present law con-
stanly accumHlating, but tie result to
which its execution must inevitably lead
is becoming palpabe to all who give the
least heed to financial subjects. This law
provides that in payment for the 81, 100000
ounces of silver bullion which the Sec. e.
tary of the Treasury is commanded to
purchase monthly there shall be issued
treasury 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 "the established
policy of the United States to maintain
lhe two metals upon parity with each
o'her upon the present legal ratio or upon
sucn ratio as may be provided by law"
This declaration so controls the action of
the oecretary OF the Treasury as to prevent
bis exercising the discretion nominally
vested In him, II by such exercise 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 III silver. and would destroy
the parity between the two metals by
establishing a discrimination in favor Of
gold.
Up to the 18th cay of July. 1898, these
notes had been issued in payment for sill
Yer bullion purchased to the amount Of
more than S147, 600, 600. While all but a
very small quantity of this bullion remains
Gncolned and without usefulness in the
treasury, many of the notes given In lis
purchase have been paid in gold. This is
illustrated by the statement that between
the lst day Of May, 1892. and the 18th day
Oh July, 1899, the notes OF this kind issued
Ih payment of silver bullion amounted to Il
iittie more than S54,0O0,000. and that dur
Ing the same period about S49.0O0.000 was
paid oy the treasury in gold for the re-
demption of such notes.
ne pollcy necessarily adopted Of pay ing
these notes IN gold has not spared the gold
reserve OF SioO'OO0,00O long ago set aside by
the Govern ment Tor the redemption of
other notes, Tor this fund has already been
subjected TO the payment of new obliga-
tions amounting to about $50. .O0O. .O00 on
account Of silver purchases, and has. as
consequence. for the first time since its