Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1893-08-10
REPEAL THE SILVER LAW.
Action Urged Upon Congress in the Pres.
dents Message.

WASHINGTON, ID. c., Aug. S.-The
Presidents message to Congress was
read to-day 1t deals entirely with the
financial situation and urges the imme-
diatc repeal of the Sherman silver pur-
chase act. 1t is as follows
TO THE CONGRESS OF THE UNITED STATES: The
existence of an alarming and extraordinary bust
ness situation, involving the welfare and pros
pcritv Of all our people, has constrained me to
call together in extra session the people repre-
seu,Utivcs in Congress, to the end that through
wise and patriotic exercise of the legislative
duty With which they solely are charged. pres
eut evils may be mitigated and dangers threat
cniua the future may be aycrted.
our unfortunate financial plight is not the
suit of untoward events nor of conditions re-
lated to our natural resources nor is it trace
able 10 any of the Affections which frequently
chect national growth and prosperity With
plentcouS crops, with abundant promise
of femuncratiye production and manutnct-
ure, with unusual invitation to safe
Investment and with satisfactory assurance to
business enterprise. suddenly financial distrust
and fear have sprung up on every side. MI
mcrous moneycd institutions have suspended
because abundant assets were not immcdiatly
available to meet the demands of fright
cucd dcpositors; surviving corporations and
individuals content to keep in hand
the money they 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 taSi becoming COIlpttHtai, ana loss ana
failur" have invaded every branch of business.
believe these things are principally charge
able TO congressional legislation touching the
purchase and coinage OF silver by the general
government This legislation is embodied in n
statute passed the lith day of July, 1890
which was the elimination of much agitation
OF the subject involved, and which may be con
sdcrcd Il truce, after the long struggle, between
the advocates Of free silver coinage and those in
tending to he more conservative.
Undoubtedly the monthly purchases by the
government of 100000 ounces of silver, forced
under that statute. were regarded by those in
tcrcstcd in silver production as n certain
guaranty of its increase in price. The result
however has been entirely different, for
immediately following spasinodic 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 efforts
in the direction of free silver coinage.
Meanwhile not only are the evil effects of The
operation of the present law constantly accu-
muatiuc, but the result to which its execution
must inevitably lead is becoming pal pablo to all
who give the least heed to financial subjects.
This law provides that In payment for the 1880,
600 ounces of silver bullion which the secretary of
the treasury is commanded To purchase monthly,
there shall be issued treasury notes rcdcemablc
on demand in gold or silver coin at the discrc-
ton of the secretary Of the treasury and that
said notes may he rc-iSSucd. 1t is, however, de
clarcd in the act to be 'the established policy of
the tinted States to maintain the TWO metals
upon parity with each other upon the present
legal ratio or such ratio as may be provided by
law Hi~ declaration SO controls the action of
the secretary 81 the treasury as to prevent his cX
crctSlug IN" disc elton nominally vested in him.
ifby such action the parity between gold ana
silver may be disturbed Manfestly refusal
by tn" secretary to pay these treasury notes III
gold, il demanded, would necessarily result
in their discrcdit and dcpreciation as OBJ
legations payable only III silver, and
would destroy the parity between the two met
ais by establishing n discrimination in favor OF
gold.
TIP to the 18th day of July. 1898, these notes
had been issued irr payment of silver bullion
purchased, to the amount of more than Sti7,-
100000. While nj but a very SINAI quantity OF
this bullion remains uncoined and without use
fuucsS in the treasury many of the notes given
in its purchase have been paid in gold.
This is illustrated by the statement that he
day of July. 1898 the notes of this kind issued
in payment for silver bullion amounted to Il lit
tie more than S5i, 100000, and that during the
same period about 5000 900 were paid by the
treasury III gold for the redemption of such
notes.
The policy necessarily adopted of paying these
notes in gold has not spared the gold reserve of
Si00.0000 600 long ago set aSideby the government
for the redemption of other notes for this fund
has already been subjected to the payment Of
new obligations amounting to about Sl5O.0O0.00o
on account of silver purchases and has as
consequence for the lirSt time since its creation,
been cHCroachcd upou.
We have thus made the depletion of our gold
easy, and have tempted others and more appre,
ciativc nations to add il to their stock, That the
opportunity we have offered has not been neglect
ed is shown by the large amounts OF gold which
have been recently withdrawn from our treas
airy and exported TO Increase the financial
strength of foreign nations. The excess of eN-
ports OF gold over its imports for the year end
ing June 30, 1898. amounted to moro than So
100000 Between the list day of July, 1890, aud
the 18th day Of July, 1893, the gold coin and
bullion IN our treasury decreased more than
S132,00O,0O0, while during the Same period the sill
coin and bullion in the treasury increased
more than $1t7,0Ol.0aO. Unless government
bonds are To be constantly issued aud sold to
replcnjsh our exhausted gold only to be again
exhausted, it is apparent that Che operation Of
the silver purchase law now in force leads in
the direction OF the entire substitution of silver
for the gold in the government treasury, and
that this must he followed by the payment of
all government obligations i'll dcprc cmtcd
silver.
Al this stage gold and silver must part com
pAny and the government must fail in its cstah-
iiShcd policy to maintain the two metals "
parity with each other. Given over to the eNclu-
sivr use of II currency greatly deprecated &C
cordiuG to the standard of the commcrclal world,
We could no longer claim place among the ma
lions OF the trStciasS, nor could our
government claim n performance OF Its
obligation SO far as such an obilEatou
has been imposed upon 1t, to provide tor
the use OF the people the best ami safest money.
IT, AS many Of It's friends claim. silver ought to
occupy Il larger place in our currency and the
currency of the world through general intcrna-
tiouat cooperation aud agreement, IL is obvious
that the United states will not be III Il position to
gain hearing i'll favor OF such an arrangement
SO long as we are willing To continue our at
tempt TO accomplish the result single handed,
The knowledge in business circles, among our
own pcoplc, that our government cannot make
its fiat cQuiNaleut to Intrinsic value, nor keep
inferior money on y parity with superior money
hy its own independent efforts, has resulted III
siich n lack of ouiidcnCc at home in the sta
biltty Of currency values that capital refuses Its
aid to new enterprises While the mlLhons are
actually withdrawn from the channels ot trade
and commerce. to become idle and unprnuuctNe
in the hands of tor(d owners. Foreign invest
-&1arsiS'aR Securities but make haste to sacrifice
&ho, ( ahch tEey already have.
iCGaAS not meet the situation TO say that APP
l,,eht,u>iun in regard to the future of our
~ - - and that