The Bolivar bulletin. (Bolivar, Tenn.) 1888-1946, 1893-08-11

Washington, Aug. S.-Following is the
| presidents message sent to congress to-
| day:
To the Congress of the United States:
The existence of an alarming and ex-
| traOrdinary business situation, involving
the welfare and prosperity of all our peo-
pie, has constrained me to call together
in extra session the peoples representa-
| tives in congress, 10 the end that their
wise and patriotic exercise of the legisla-
| tive duty with which they solely are
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, 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 assur-
ance to business enterprises, suddenly
financial distrust and fear have sprung up
on every side. Numerous moneyed lnsti-
tutions have suspended because abundant
assets were not Immediately available to
meet the demands of frightened deposit
Ors. Surviving corporations and individ-
uals are 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. Val
ues supposed to be fixed are fast becom-
ing conjectural, and loss and failure have
invaded every branch of business. l be-
lieve these things are principally charge
able to congressional legislation touching
the purchase and coinage of silver by the
general government.
The sherman Act.
This legislation is embodied in stat
ute passed OH the 14th day of July, 1890,
which was the elimination of much agi-
tation on the subject involved, and which
may be considered a truce, after the
long struggle, between the advocates of
fsee silver coinage and those intending to
be more conservative.
Undoubtedly the monthly purchases
by the government of 100000 ounces
of silver, enforced under that statute
were regarded by those interested in
silver production as a certain guarantee
of its increase in price. The result,
however, has been entirely different, for
Immediately following a spasmodic and
TO fall after the passage of the act and
has since reached the lowest point ever
known. This disappointing result has
led 10 renewed and persistent effort In
the direction of free coinage.
Meanwhile. not only are the evil effects
of the operation of the present law con-
stantIy accommodating but the result to
which its execution must inevitably lead
is becoming palpable to all who give the
least heed to financial subjects.
This law provides that in payment
for the 100000 ounces of silver bull
lion which the secretary of the treasury
il commanded to purchase monthly, there
shall be issued treasury notes redeemable
on demand i'm 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 the two metals on a
parity with each other on the present
legal ratio or such ratio as may be pro-
vided by law" This declaration so con-
trolls the action of the secretary of the
treasury as to prevent his exercising the
discretion nominally vested in him. if by
such action the parity between gold and
silver may be disturbed. Manifestly, a
refusal by the secretary 10 pay these
treasury notes in gold, If demanded,
would necessarily result in their discredit
and depreciation as obligations payable
only in silver and would destroy the par
ity between the two metals by establish
ing discrimination i'm favor of gold.
It's BaIeful Effects.
Up to the fifteenth day of july, 1893,
these notes had been issued in payment
of silver bullion purchases, to the ending
June 80. 1893. amounted TO more than
$ST. 100000. Between the first day of
July, 1890, and the fifteenth day Of
July. 1893. the gold coin and bullion in
our treasury decreased more than $l32.-
100000, while during the same period
the silver coin and bullion in the treasury
increased more than $147,0O0, 900. Unless
government bonds are TO be constantly
issued and sold to replenish our exhaust
ed gold. only 10 be again exhausted, it
Is apparent that the operation of the sill
vcr 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 obli-
cations in deprecated silver.
At this stage gold and silver must
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