The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1893-08-17
THE N. ESSAGE.

THE Elk N ESSA gle.
President Cleveland Discusses the
Financial Problem.
Attributes Panic to Congressional silvor
Leglslation-Rscom Repeal
Of Purchasing Clause.
6 THE PREsIDENT's VIEWS.
To THE CONGRESS OF THE UNITED STAIRS:
The existence Of an alarming and ex-
traordinary business situation, involy-
ing the welfare and prosperity Of al
our people, has constrained me to call
together in extra session the peoples
representatives in congress, to the end
that, through q wise and patriotic exer-
else of the legislative duty with which
they solely are charged, present evils
may be mitigated and dangers threaten
ing the future may be averted.
The Unfortunate Financial Plight.
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
national growth and prosperity. With
plenteous crops, with abundant prom
ise OF remunerative production and
manufacture, with unusual invitation
to safe investment and with satisfac-
tory assurance to business enter
prise, 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 do
positors. Surviving corporations and
| individuals 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. Values supposed to be fixed
are fast becoming conjectural, and loss
and failure have invaded every branch
of business.
Attributed to Congressional Legislation.
believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage Of
silver by the general government This
legislation is embodied in statute
passed on the 14th day of July, $780,.
which was the elimination of much
agitation on the subject involved, and
which may be considered truce, after
q long struggle, between the advocates
of free silver coinage aud those intend
ing to be more conservative
Silver Depreciation.
Undoubtedly the monthly purchases
by the government of 4,500,0 900 ounces
of silver, enforced under that statute,
were regarded by those interested in
silver production as a certain guaranty
OF it's 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.
| Future Results.
Meanwhile, not only are the evil ef-
fects of the operation of the present
law constantly accommodating, but the
result to which it's execution must in
evitably lead is becoming palpable to
all who give the least heed to financial
subjects. This law provides that in
payment for the 4, 500, 900 ounces of sill
yer bullion, which the secretary 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 Sec
rotary of the treasury, and that said
notes may be reissued.
Parity Between Gold and Silver.
It 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 upon the present
legal ratio, or such ratio as may be pro-
vided by law" This declaration so
controls the action of the secretary of
the treasury as to prevent his exercis-
ing the discretion nominally vested in
him, if by such action the parity be-
tween gold and silver may be disturbed.
Manifestly refusal by the secretary
to pay these treasury notes in gold, if
demanded, would necessarily result in
their discredit and depreciation as OBJ
legations payable only in silver, and
would destroy the parity between the
two metals by establishing discrimi-
nation in favor of gold.
Redemption in Gold.
Up to the fifteenth day of July, 1898,
these notes had been issued in payment
of silver bullion purchases, to the
amount of more than one hundred aud
forty-seven millions of dollars While all
but q very small quantity of this bullion
remains uncoined and without useful
ness in the treasury, many of the notes
given in its purchase have been paid in
gold. This is illustrated by the state
ment that between the first day of May,
1892, and the fifteenth day of July, 1893,
the notes of this kind issued in pay
ment for silver bullion, amounted to a
little more than fifty-four millions of
dollars, and that during the same
period about forty-nine millions of dol
lars were paid by the treasury in gold
for the redemption of such notes.
Gold Depletion.
The policy necessarily ador ted of pay.
ing these notes in gold has not spared
the gold reserve of 500, 600. 900 long ago
set aside by the government for the re-
demption of other notes, for this fund
has already been subjected to the pay
ment of new obligations amounting to
about $3.50, OOO, 600 on account of silver
purchases, and has, as q consequence,
for the first time since it's creation
been encroached upon. s
We have thus made the depletion of
our gold easy and have. tempted other
and more appreciative nations to add
it to their stock. That the opportunity
we have offered has not been neglected
is shown by the large amounts of gold