New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-09
THE PRESIDENTS MESSAGE.
REPEAL rs STRONGLY URGED.
CONTINUED PURCHASE OF SILVER A DAN.
GEROUS POLICY.
PROMPT ACTION THE GREAT NEcEssITE

NANCIAL DISTRESS-ITS REPEAL
URGED, But NO SUBSTITUTE
sUGGEsTED-TARIFF RE-
FORM POSTPONED, BUT
NOT ABANDONED
Washington, Aug s.-President Cleveland'a
anxiousy awaited message the silver question
was transmitted TO Congress to-day. Its full text
is as follows:
To the Congress of the United States
The existence Of an alarming and extraordinary
business situation, involving the welfare and pros
perity of all our people, has constrained me TO
call together in extra session the peoples repre-.
sentatives in Congress to the end that through
q wise and patriotic exercise of the legislative
duty with which they solely are charged present
evils may be mitigatcd and dangers threatening
the future may be averted.
Our unfortunate financial plight Is not the re-
suit Of untOward events nor conditions related to
our natural res urces mol is 1t fraceable to any
of the Affections which frequently check National
growth and prosperity. With plenteous crops
with abundant promise of remunerative produc-
tion and manufacture, with unusual lnVitation
10 safe investment, and with satisfactory assur-
ance TO business enterprise, suddenly nnancla
distress and fear have sprung up on every side.
because abundant assets were not Immediately
available TO meet the demands of frightened de-
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 sup
posed to be fixed are fast becoming conlectural'
and loss and failure have involved every branch
of business.
THE SHERMAN ACT" HELD AT FAULT.
believe these things are principally charseablo
10 Congressional legislation touching the pur-
chase and coinage of silver by the General
Government.
This legislation is embodied in statute passed
on the 18th day of July, 1890, which was the
elimination of much agitation on the subjeco
involved and which may be considered truce,
after a long struggle, between the advocates OK
free silver coinage and those intending to be more
conservative.
Undoubtedly the monthly purchases by the Gov.
ernment of 45O0,00C ounces of silver, enforce"
under that statute, were regarded by those IN
terested in silver production as certain guarantee
Of it's increase in price. The result, however,
has been entirely different for, Immediately iol-
lowing spasmodic and slight rise, the price
act. and has since reached the lowest point ever
known This disappointing result has LED ID
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 accuihuiat
ing. but the result to which its execution muse
inevitably lead is becoming palpabe to all VINO
give the least heed to financial subjects
This law provides that in payment Tor the
four million and five hundred thousand ounces
of silver bullion which the Secretary OK
the Treasury is commanded TO purchase
monthly there shall be issued Treasury notes re-
deemable on demand in gold or silver coih' aS
the discretion Of the Secretary OF the treasury
and that said notes may be reissued. Ii Is, now
ever. declared in the act TO be " the established
policy of the United States to maintain the two
metals on parity with each other upon the
present legal ratio, or such ratio as may be pro-
yided by law" This declaration so controls tho
actica 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
fcstly "a refusal by the Secretary to pay these
Treasury notes in gold if demanded would neccs-
sariN result in their discrcdt and depreciation as
obligations payable only in silver and would de-
stroy the parity between the two metals by eS
tablishing q discrimination in favor Of gold.
EXHAUSTION OF THE GOLD SUPPLY.
Up to the fifteenth day of July, 1893, these
notes had been issued in payment of silver bull
ion purchases TO the amount of more than one
hundred and forty-scven millions Of dollars.
While all but very small quantity of this bull
ion remains uncoined and without usefulness i'm
the Treasury, many of the notes given in its
purchase have been paid in gold. This is illus.
trat.d by the statement that between the first
day of May, 1892, and the fifteenth day of july,
! 1913, the notes of this kind issued in paymene
for silver bullion amounted to a little more tha1
fifty -four millions of dollars, and that during tho
same period about forty-nine millions Of dollars
were paid by the Treasury in gold for the re-
dcmption of such notes
The policy necessarily adopted Of paying fhese
notes in gold has not spared the gold reserve OF
one hundred millions Of dollars long ago Ses
aside by the Government for the redemption VI
other notes. for this fund has already been SUD-
jectcd to the payment of new obligations smou"
ing 10 about one hundred and fifty millions or
dollars on acoount Of silver purchases, and has, a.
a conseQ uence for the first time since i's cre"'i'"
been encroached upon Ia
We bavo Tins made the depletion OF our goo
easy and have tempted other and more appres'
,tive nations TO add il 10 their stock. lha' u
onror,u !, W. have offered has not Deen ho
lected is shown by the large amounts o, so'u
which have been recently drawn from our IVA,
nrv and exported to increase the financial strength
of forc;gn nations. The excess OF eAPor's vi soi~
over q, "i i,s imports for the year ending June 80.
ooe. s,, ~. n.,n,cd 70 more than eighty-seven and
half millions of dollars ,
"I, %, xeop the first day of July. 1890. and the
c..,,n,h doy Of July, 1885, the gold coin and
.,,on in our Treasury decreased more than one
,,,,Ir.d and thirty-two millions of dollars while
1urug the same period the silver coin ard bull
or IN the Treasury increased more than ono
hundred and forty-seven millions OF dollars.
Unless Government bonds are to be constantly
ssued and sold to replenish our exhausted gold.