Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1893-08-11
The Presidents MESSAGE.
Repeal the Sherman Law.


age sent to Congress.
WASHINGTON. d. c. Aug. s, 1893.
To the Congress ofth United States &:
The existence of an alarming and eX-
traOrdinary business situation involving
the welfare and prosperity OF all our
people has constrained me to call TO-
gether in extra session the peoples
representatives in Congress to the end
that through wise and patriotic exer-
else of the legislative duty with which
they solely are charged, presentevils may
be mitigated and 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 re-
sources, nor is it traceable to any OF the
Affections which frequently check ma
tiOnal growth and prosperity. With
plenteous crops, with abundant promise
OF remunerative production and manu-
facture, with unusual invitation to safe
investment and with satisfactory ASST
rance 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 fright
ened depOsitors. Surviving corporations
and individuals arc content to keep in
hand 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 satisfactory, are no longer
accepted. Values supposed to be fixed
are fast becoming coniectural, and loss
and failure have involved every branch
of business.
l believe these things are principally
chargeable to congressional Legislation
touching the purchase and coinage o
silver by the general government.
This legislation is embodied in a statute
passed on the 18th day of July, 1890
which was the elimination OF mucl
agitation on the subject involved, anC
which NAV be considered a truce, afte
long struggle between the advocates o
, free silver coinage and those intendin
, to be more conservative.
Undoubtedly the monthly purchase
by the government of four millions ant
enforced under that statute, wero re
] garded by those interested in silver pro
ductiOn as certain guaranty OF its IN
crease in price. The result, however
has been entirely different, for i'm
, mediately following spasmodic an(
slight rise the price of silver began to fal
after the passage OF the act, and has since
reached the lowest point ever known
This disappointing result has led to re
newed and persistent effort in the direc
ton OF free silver coinage.
Meanwhile, not only arc the evil eft
fects of the operation OF the present Law
constantly accumulating, but the resul
to which its execution must inevitably
| lead is becoming palpable to all whC
. give the least heed to financial subjects
t This law provides that in payment fo
the four million and five hundred thous
and ounces OF silver bullion which thu
Secretary Of the Treasury is commanded
to purchase monthly, there shall be Is
, sued treasury notes redeema5le on de
mand i'm gold or silver coin at the dis
erection OF the Secretary OF the Treasury
and that said notes may be re-issued. !
is. however, declared in the act to b'
the established policy OF the Unitet
] States to maintain the two metals on
parity with each other upon the presen
legal ratio, or such ratio as may be pro
vided by law" This declaration so con
: trolls the action of the Secretary OF th'
Treasury as to prevent his exercising thu
discretion nomal'y vested in him ant
bv such action the parity between Sol(
rnd silver NAV be disturbed, Manifest
" a refusal by the Secretary to pay thest
treasury notes in gold, il demanded
, would necessarily result in their dis
credit and depreciation as obligations
PAYABLE only in silver and would destroy
the parity between the two metals by
establishing a discrimination In favor Of
gold.
I'D to the 18th day Of July, 1893, these
notes had been issued in payment oil
silver bullion purchased to the amount o.
more than one hundred and fOrty-seyer
millirns OF dollars. While all but very
small quantity OF this bullion remains
uncOned and without usefulness In the
treasury. many of the notes given in III
purchase have been paid in gold. Inns
is illustrated by the statement that be-
tween the lst day of May, 1892, and the
18th day Of July, 1893, the notes OF this
kind issued in payment for silver bullion
amounted to 4 little more than fifty-fouI
: millions Of dollars. and that during the
same period about fOrty-nine millions Of
dollars were paid by the treasury IL
gold for the redemption OF such notes.
The policy necessarily adopted OF pay
ing these notes in gold has not sparcdtht
cold 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 Obligation;
, amounting to about one hundred and
fifty millions OF dollars on account OF sill
yer purchases, and has, as a consequence
for the first time since its creation, been
encroached upon,
We have thus made the depletion o.
our gold easy and have tempted Othel
and more appreciatiYe nations to add il
TO their stock. That the opportunity we
have offered has not been neglected i
shown by the large amounts OF gold
which have been recently drawn from
orr treasury and exported to inc ease
the financial strength Of foreign nations
The excess of exports OF gold over its
imports for the year ended June 30, 1893
amounted to more than eighty-seyen and
a half millions of dollars.
Between the first day OF July. 1890
and the 10Th day Of July, 1898, the gold
coin and bullion in our treasury decreas-
ed more than one hundred and thirty
two mi lions of dollars, while during the
same period the silver coin and bullion
in the treasury increased more than one
hundred and forty-seyen millions Of dol
lars. Unless government bonds are to
be constantly issued and sold to replen'
ish our exhausted gold, only to be again
exhausted, it is apparent that the Ope-
ration OF the silver-purchase law now in
force leads in the direction OF the entire
substitution OF silver for the gold in the
government treasury, and that this must
be followed by the payment of all
government obligations in deprecated
silver.
At this stage gold and silver must part
company and the government must fail
lin its established policy to maintain the
tu,o metals on n MARTY with each other