Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1893-08-18

Cause of the Present Crisis-Evil
Effects of the Present Law Are
Asserted to be Constantly Ac-
cumulating Reform Ur-
gent, But II Must Wait Until the
Financial Difficulty is Overcome.
President Cleveland has ant this message
TO the special session Of Congress:
TO the Congress Of the United States:
The existence OF an alarming and extra.
ordinary business situation. involving the
welfare and prosperity Of all our people. has
constrained me to call together an extra ses-
sion Of the peoples representatives, in Con-
gress. to the end that through a wise and
patriotic exercise Of the legislative duty with
which they solely are charged. present evils
may be mitigated and dangers threatening
the future may be ayertet.
FINANCIAL SITUATION EXCEPTIONAL.
Our unfortunate financial plight is not the
result Of untoward events nor Of conditions
related to our natural resources. nor is it
traceable to any Of the Affections which fre-
quently check National growth and pros
perity.
With p.cnteous crops. with abundant prom
ise Of remunerltiye production and manu-
facture. with unusual invitation 10 safe in
yestment and with satisfactory assurance to
business enterprise. suddenly financial dis
trust and fear have sprung up on every side.
Numerous mOneyct institutions have sus-
pended because abundant assets were not
Immediately available TO meet the demands
Of the frightened depositors.
BUSINESS CREDIT WEAKENED.
Surviving corporations and individuals are
content to keep in hand the money they are
usually anxious 10 loan. and those engaged
in legitimate business are surprised 10 inl
that the securities they offer for loans,
though heretofore satisfact )ry. are no longer
accepted. Values supposed TO be fixed are
fast becoming cOnjectural. and loss and
failure have involved every branch Of busi-
ness.
LEGISLATION 70 pLAIE.
believe these things ar, principally
chargahle to Congr, ssional legislation touch
Ing the purchase and coinage of silver by the
general Government.
THE SHERMAN Law.
This legislation Is embodied in a statute
passed on the l4th day of July. 1890. which
MuT fuAL4iuA ALUM va l4urM h-A0A-Nu UA AAn
subject involved. and which may be consid-
cred a truce after long struggle. between
the advocates of free silver coinage andthose
intending TO be more conservative
Undoubtedly the monthly purchases blythe
Governments of i.50J.O0) ounces OF silver en-
forced under the statute were regarded by
those Interested in silver production as acer-
tain guaranty OF its increase in price.
TIE FALL IL SILVER.
The result. however. has been entirely diff
ferent for Immediately following a spas
modic and slight rise the price Of silver be-
gan 10 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 effort IN the
direction Of free silver coinage.
EVIL EFFEcrs OF THE LAW.
Meanwhile not only are the evil effects Of
the operation Of the present law constantly
accumuating, but the result to wlich is
execution must inevitably lead is becoming
palpablo to all who give tho least heed 70
financial subjects.
ITS PROVISIONS.
The aw provides that in payment for the
four million and five hundred thousand
ounces Of silver bullion which the Secretary
of the Treasury is commanded TO purchase
monthly. there shall be issued Treasury
notes redeemable on demand in gold or sill
Yer coin. at the discretion OF the Secretary
Of the Treasury. and that said notes may be
reissued. II l.. however. declared In the act
TO be- the established policy Of the United
States to maintain the two metals on par
ity with each other upon the present legal
ratio. or such ratio rs may be provided by
law.
TREASURY HAMpEGED By rHL LAW.
This declaration 50 controls the action Of
the Secretary OF the Treasury 10 prevent his
exercising the discretion nominaliy vested IN
him. if by such action the parity between
goa ana silver may be- DISTURBED.
Nanifcstly. refusal by the Secretary to
pay iheso Treasury notes IN gold. II de-
manded, would necessarily result in their
the hands of timid owners. Foreign inyes-
tors. equally alert. not only decline TO pur-
chase American securities. but make haste 10
sacrifice those which they already have.
It does not meet the situation to say that
apprehension in regard to the future Of our
finances is grOundless and that there Is no
reason for lack Of confidence in the purposes
or power Of the Government in the premises.
The very existence Of this apprehension and
lack of confidence. however caused, Is a
menace which ought not for moment to be
disregarded.
PARITY IMPOSSIBLE.
Possibly il the undertaking We have in
hand were the maintenance Of specific
known quantity Of silver rs the parity with
gold. our ability to DO so might be estimated
and gauged. and perhaps in view OF our I'M
paralleled growth and resources might be
iavorably passed upon. But when oul
avowed endeavOr is 10 maintain such parity
in regard TO an amount Of silver increasing
at the rate OF $50, 600. 900 yearly with nc
fixed termination 70 such increase, It car
hardly be said that problem is presented
whose solution is free from doubt.
MUST REGARD OTHER STATES.
The people Of the United States are enti
tied TO sound and stable currency and t.
decreased more than sIS2,000 900. while
during the same period the silver coin aud
bullion in the Treasury increased more than
Sli7 900. 900. Unless Government bonds are
10 be constantly issued and sold to replenlsh
our exhausted gold. only 10 be again eN-
haustei. Il is apparent that the 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 Treas
ury. and that this must be followed by the
payment OF all Government obligations IN
deprecated silver.
At this stage gold and silver must part
company and the Government must fail in
its established policy TO maintain the two
metals on parity with each other. Given
over TO the exclusive use OF currency
greatly deprecated according 10 the stand
ard OF the commercial world, We could no
longer claim place among Nations OF tho
first class, nor could our Government claim
a performance OF its obligations 50 far as
such an obligation has been imposed upon
1t. to provide for the use Of the people the
best and safest money.
CAN'T GO sISGLE-HANDED.
II. as many Of its friends claim. silver
ought to occupy larger place in our cur
rency aud the currency OF the world through
general international cooperation and agree
ment, II is obvious that the United States
will not be in a position to gain hearing IN
fo.,,~ . at,oh an arranOpmonf long we