The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1893-08-10
THE PRESIDENTS MESSAGE.

THE PRESIDENTS MESSAGE.
WASHINGTON. ID C.. Aug. $50 th,
Congress Of the United States: The ex.
istence OF an alarming and extraordinary
business situation. involving the welfare
and prosperity of all our people. has con.
strained me to call together In extra ses.
sion the peoples representatives In con.
gress. to the end that through the wise
and patriotic exercise Of legislative duty.
with which they are solely charged. the
present evils may be mitigated and dan.
gers threatening the future may be
avoided. Our unfortunate financial
plight Is not the result of untoward cir.
cumstances nor Of conditions related to
our natural resources. nor Is II iracesblt
to any Of the Affections which frequently
check national growth and prosperity.
With plenteous crops. with abundan,
promise Of remuuerstive production aud
manufactures, with unusual invitation Ia
safe investment and satisfactory assur-
ance to business enterprise. suddeui, a
financial distrust and fear have sprung
up on every side. Numerous financial
institutions have suspended because
abundant asscts were not Immediately
available TO meet the demands Of fright.
ened deposltors. Surviving individuals
and corporations are conten, TO keep IN
hand their money. They are usually
anxious to loan. and those engaged Ia
legitimate business are surprised to find
that the security they offer for loans.
though heretofore satisfactory. are no
longer accepted. Values supposed to be
Fixed are fast becoming conjecture, aud
loss and failure have invaded every
branch of business.
COMES TO ruE POINT.
l believe these things principally
chargeable TO congressional legislation
touching the purchase and coinage Of
silver by the general government This
legislation is embodied 10 the statut,
passed the l4lh day Of July. 1890. which
was the elimination of much sgitation
on the subject involved. and which ma,
be considered a truce. after "a long struy.
gle. between the advocates of free silver
coinsge and those intending TO be mor
conservative. Undoubtedly the immedi
ATE purchases by the government Of
4 sec, 900 ounces of silver forced under
that statute were regarded by those in.
lerested in silver production as certain
guarantee of its increase III price. TIL,
result. however. has been entirely differ
ent, for Immediately following the spas
modic aud slight rise. the price Of silve'
began TO fall after the passage of thi,
act and has since reached the Lowest
point ever known. This Disappointing
result has led to renewed and persisten
: fort in the direction Of free silver coin
age. Meanwhile. moi only are the evi
effects OF the operation of the presen,
law constantly accommodating, but the re-
sult 10 which its execution must ine,i
tabiy lead is becoming palpable to all
who give the least heed to the financial
subject
This law provides that IN pay ment for
4, 500, 600 ounces OF silver bullion which
he secretary of the treasury Is com
manded to purchase monthly. Their
shall be Issued treasury notes redeemablt
on demand, 10 gold or silver coin as de
sired, on the part of the secretary, and
that said notes may he reissued. Il is
however. declared In the act to be the
established policy of the United States
to keep the two metals upon part,
with each other upon the present legal
ratio. or such ratio as may be provides
by law" This declaration so confines
the action Of the secretary of the treas
ury as TO prevent his exercising the die
erection nominally vested in him. II by
such action the parity of gold aud silver
may be disturbed, manifeslly the refusa
by the secretary OF the treasury to pay
these notes in gold as demanded would
necessarily result In their discredit, as
The obligations are payable only 10 silver.
and would destroy the parity between th.
Two metals, and establish discrepanc,
in favor OF gold
Up 10 the 18th dsy of July. 1898. these
notes had been issued in payment
Of silver bullion purchased TO the amount
Of more than si47. 900. 900. While all
but very small quantity of this bullion
remains uncoined aud without usefulness
10 the treasury, these notes given in it,
purchases have been paid In gold. This
is illustrated by the statement that be-.
tween the LIST day of May. 1892. and the
18th day of July. 1893. notes of this
kind issued IN payment of silver bullion
amounted to little more than s54 900,
900 and that during the same period
about s49. 900. 900 were paid by the treas
ury in gold for the redemption of such
notes.
THE GOLD RESERVE INVADED.
The policy necessarily adopted of pay
ing these notes in gold has not shared
the goid reserve of 500. 600. 600 long ag.,
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 Ia
about $3.50. noe. 900 on account of silver
purchases, aud has. as consequence,
for the first time since its creation been
eucroached upon. We have thus made
the depletion Of our gold easy and have
asked other and more apprecistive Ma.
tons to add Il 10 their stock. That the
opportunity We have offered has no,
been neglected is shown by the large
amounts OF gold which have recently
been drawn from our treasury and ex.
ported to increase the financial strength