Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-08-09
BRIEF AND URGENT
Cleveland's Remarks to the Ma.
tional Lawmakers.
BUT A SINGLE SUBJECT DISCUSSED.
Prompt and Unconditional Repeal Of
the Sherman Act the Only Rec
ommendation Made.

but Can Wait on the Finance Solution
Hill and Stewart Introduce Bills and
a Long Debate Takes Place in the SEN
ate-General Comment.
WASHINGTON, Aug. "A few unimpor-
tant business matters occupied the senate
for short time after assembling, aud
then recess was taken, at the end Of
which it was announced that the presi-
dents message was at hand. II was what
the senate was waiting for and its reading
was Immediately begun by Chief Clerk
johnson. The following is the text:
WASHINGTON, Aug. s.-President Cleve-
lands message to congress in extra session
was read in both houses and is as follows:
To THE CONGRESS or THE UNITED STATES:
The existence Of an alarming and extraordi-
nary business situation. involving the welfare
and prosperity OF all our people. has con
strained me 10 call together in extra session
the peoples representatives in con
gress, TO the end that through
wise and patriotic exercise II
the legislative duty with which they
solely are charged, present evils may be miti-
gated and dam ers threatening the future may
beayerted.
Our unfortunate financial plight is not the
result Of untOward events nor Of conditions re-
lated 70 our natural resources; nor il il trace
able 70 any Of the Affections which frequently
check national growth and prosper
ity. With plenteous crops with abund-
ant promise OF remunerative produc-
ton and manufacture, with unusual
invitation to safe investment and with salts
factory assurance 10 business enterprise, sud
denly financial distrust and fear have sprung
up on every side. Numerous moneyed iustitu-
tons have suspended because abundant assets
were not Immediately available 20 meet the de
mands OF frightened depOsitors. Surviving
corporations and individuals are content 70
keep in hand the money they are usually anx.
ious to loan. and those engaged in legitimate
business are surprised 90 find that the securities
they offer for loans, though heretofore salts
factory, are no longer accepted Values sup
posed % be fixed are fast becoming coniectur-
al, and loss and failure have invaded every
branch Of business.
l believe these things are principally charge
able 20 congressional legislation touching the
purchase and coinage OF silver by the general
government. This legislation is embodied in
a statute passed on the l4th DAY OF
July, leyO which was the elimination OF much
agitation on the subject involved and which
may be considered truce, after long struggle
between the advocates OF free silver coinage
and those intending to be more conservative
Undoubtedly the monthly purchases by the
government OF 10000 ounces Of silver, en-
forced under that statute, were regarded by
those interested in silver production as a GER
=
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 20 renewed and persistent effort
in the direction Of free silver coinage. Mean
while, not only are the evil effects OF the ou-
Grafton OF the present law constantly ac-
cumulatiug, but the result to which its execu-
ton must inevitably lead is becoming palpable
70 all who give the least heed TO financial
subjects
This law provides that in payment for the
$4,000 ounces Of silver bullion which the sec
Rotary Of the treasury is commanded to pur-
chase monthly there shall be issued treasury
notes redeemable on demand in 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 10
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 nominal
" vested in him, if by such action the parity
between 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 obligations payable only in sill
yer, and would destroy the parity between
the two metals by establishing a discrimina-
ton in favor of gold
Up to the 18th day Of July, 1898. these notes
had been issued in payment Of silver bullion
purchases 10 the amount of more than forty
seven millions Of dollars. While all but a very
small quantity of this bullion remains uncoined
and without usefulness 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 LIST day OF Nav. lsa2 and
the 18th day OF July 1893 the notes Of this kind
issued in payment 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 dollars were paid by the treas
ury 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
SlOOOD,UJ 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 obligations amounting to
about one hundred and fifty million, OF dollars
on account Of silver purchases, AMI his a.
consequence, for the first time since its crea-
ton, been encroached upon.
We have thus made the depletion Of our gold
easy, and have tempted other and more ap-
preciatiye nations to add it 10 their stock.
That the opportunity we have offered has not
been neglected, is shown by the large amounts
of gold which have been recently drawn from
our treasury and exported To increase the
financial strength of foreign nations The ex.
cess OF tApOTIS OF ROlu over Us imports Tor
the year ending June "a, 1893 amounted to
more than eighty-seven and q half millions Of
dollars. Between the lst day Of July, 1890
and the 18th day of July. 1893, the gold coin
and bullion in our treasury de-
creased more than one hundred and thirty
two millions OF dollars while during the same
period the silver coin and bullion in the treas
ury increased more than one hundred and
forty seven millions Of dollars. Unless govern
ment bonds are TO be constantly issued and sold
to replenish our exhausted gold. only to he
again exhausted It is apparent that the opera
tion of the silver purchase law now in force
leads in the direction of the entire substitution
OF silver for 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 COM
pany and the government must fail in its es-
tablished policy to maintain the two metals on
o parity with each other Given over to the
exclusive use Of q currency greatly depreciat-
ed according to the standard of the CONNER
cial world, we could no longer claim q place
mn, v1af pft ha ola