Milford chronicle., 1893-08-11
nha praslaenRs Measaae.

WAsHrNeroN August 8. The message Of
President Clese and was sent to both Houses
Of Congress ir sdialely after they opened
at neon to-dey 8 read. It is as follows
10 ffs congsa IS offHe United States. The
existence OF IL alarming aud extraordinary
business sitpaa i,irvoivine the welfare and
pros peuiy Of y 3rl people, has coustrained
me TO can toy x in extra session the peo-
pIe's rerreeeis tsin Congress, 10 the e1d
that througi. q Sc .se and patriotic exercise 81
The legislative rty with Thich they solely
IRE charged, present evils may be miiiFaie3
and dangeis threatening The future may be
aveued.
a SURPRISING SITUATION.
Oar unhrFese 6nancial plight is not the
result Of prisv~Id events nor Of conditions
related 20 our nalsTal resources; nor is it
trsccaile 10 ary cf The affections which ire
quently check national growth and prosper
ity. With plenteous crops, with abundant
promise of remuuerative production and
manufacture, with unusual invitation to safe
investment ard with satisfactory assurance
TO business enterprises, suddenly financial
disirust end fear have sprune UP on every
side. Numerous money institutions have
suspended because abundant assets were not
Immediately available to meet demands Of
frightened depositors.
Surviving corporations aud individuals
are content to keep in hand the money they
are usually anxious to loan, and those en-
gagged in legitimate business, are surprised
TO hnd that the securities they offer for the
loans, though heretofore satisfactory, are no
longer accepted. Values supposed to be fixed
are fast becoming coujectural and loss aud
failurs have involved every branch Of bust
ness.
CHARGKABLE TO SILVER LEGIsLA-
TION.
believe these things are principally
chaTgeable to Congressional legislation touch
ing the purchase and coinage of silver BY
the genersl government.
This legislation is embodied in a statute
passed on the I4th day ofJuly 1890, which
was the elimination of much agitation on
the subject involved. and which may be con
sidered a truce, after long struggle, between
the advocates of free silver coinage aud those
intending &c be more conservative.
EVIL BFFECTs AcCUAIULATING
Undoubtedly the money purchases by the
government of 4, SOC, 900 ounces of silver, en-
forced under that statute, were regarded by
those interested ia silver production as a GER
tain guaranty Of its increase in price The
result however has been entirely different.
for immediately following a 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
disappointed result has led to renewed and
persistent effort in the direction Of free sill
yer coinage Meanwhile, not only are the
evil effects Of tie operation of the present
law constantly accumulating but the result to
which its execution must inevitably lead is
becoming palpable TO all who give the least
heed 10 financial subjects.
This law provides that IN payment for the
4. 500, 900 ounces of silver bullion which the
Secretary of the Treasury i9 commanded 10
purchase monthly. there shall be issued treas.
nTy notes redeemsble on demand in gold or
silver coin, at the discretion of the Secretary
Of the Treasury aud that said notes may be
reissned, II 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 provided by law. " |
This declaration so controls the action Of the /
Secretary Of the Treasury as TO prevent his /
exercising the discretion nomiuallY vested in 4
him, if by such action the parity between /
gold and silver may be disturbed. Mani /
testify refusal by the Secretary to pay these /
treasury notes in gold, if demanded would .
necessarily result in their discTedit and de /
probation, as obligations payable only in sill I
yer would destroy the party between the |
two metals by establishing a discrimination 1
in favor of gold.
ENCROACHING ON THE GOLD RESERVE. 1
pp TO the 18th day Of July, 1895 these notes
had been issued IN payment Of silver bullion
purchases to the amount Of more than SI45. /
100000. While all but a very small quantity I
OF this bullion remains uncoiued and without
usefulness in the treasury, many Of the notes
given in its purchase have been paid in gold. /
This Is Illustrated by the statement that be |
tween the Ist day Of MAY, 1892, and the 18th .
day Of July, 1851 notes ofthis kind issued .
IN payment tor silver bullion amounted 10 a
little more than S54, @, 600, and that during
that same period about $40, ooo, 900 were paid I
by the Treasury IN gold for the redemption
Of such notes. The policy necessarily /
adopted Of paying these notes in gold has
not spared the gold reserve of SIoo, 600 600.
iong ago set aside by tile government for re-
demption Of other notes, for this fund has al
ready been subjected to the payment of new
obligations amounting to about SI5o, 900, 900,
on account Of silver purchases, and has as a
consequence for the FIRST time since its crea-
tion been eneroached upon.
HELPED OTHER NATIONS TO OUR GOLD.
We have thus made the depletion of our
gold easy and have tempted other and more
arPfeciatiVe nations to add it to their stock.
That the opportunity We have offered has not
y
of gold which have been recently drawn from
our treasury and exported to increase the
financial strength of foreign nations. The
excess of exports OF gold over its imports for
the year ended June goth, 1893, amounted to
more than eighty-seveu and a-half million Of
dollars. Between the FIRST day of July, 1900
and the 18th day ofJuly, 1898, the gold coin
and bullion in our treasury decreased more
than SI32, 900, 900, while during the same per
iod the silver coin and bullion in the treas
ury increased more than SI47 900, 600. Unless
government bonds are to be constantly issued
and sold to Teplenish our exhausted gold only
to be again exhausted, it is apparent that the
operation of the Silver Purchase law now in
force, leads in the direction Of the entire sub
stitution of silver foi the gold in the gov :
ernment treasury, and that this must be fol- ,
lowed bv the payment Of all government OBJ
legations in deprecated silver
GOLD AND SILVER MUST PziR'rr, ]
At this stage gold ard silver must part
,ompany and the government must fall in [
ia established policy 10 maintain the two
q etas on a parity with each other Given
over to the exclusive use Of a currency
greatly deprecated according to the stand :
lrd Ofthe commercial world, we could no z
onger claim place among nations of the I
irst class, nor could our government claim I
/ performance of its obligation, so far as c
+, to provide for the use Of the people the !
'est aud safest money
WHAT THIS COUNTRY CANNOT DO. +
II, as many of its friends claim, silver e
'ught to occupy larger place in our cur. c
ency and the currency of the world. Il
trough general international cooperation F
md agreement, 1t is Obvious that the I
United States will not be in a position to c
ain hearing IN favor Of such an arrange.
uent so long as we are willing 10 continue d
ur attempt TO accomplish the result b
The knowledge in business p
ircleF among our own people thai our Il
overnmeut canEot make its fiat cquiva- G
ent 10 intrinsic velue, ror keep inferior a
ioney on parity with superior money bv ST
S own independent forts, has resulted d
UGH A LACK OF CONFIDENCE Ar HOME -
the stability of currency values, thai ~
lpital refuses its aid to new emf r,,rfeAe =