St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-09
GROWERS GREETING,
Alarming Business Situation
Demands Prompt Action.
CAUSES or THE GREAT CRISIS.
Evil Effects Of the Operation
Of the Present Law.
SOUND AND STABLE CURRENCY
Recognized in Every Marke!
in the World.
CAUSES or THE GREAT CRISIS.
SOUND AND STABLE CURRENCY
MUST BE GIVEN TO our PEOPLE.

WASHINGTON, Aug. S.-The presf.
dents message was delivered to con-
gresS soon after the two bodies were
called to order at noon. Its reading
was proceeded with. 1t is as follows:
10 the Congress of the United States:
Inc existence of an alarming, an eX-
traordinary. business situation, lnvolv-
ing the welfare and prosperity of all
our people, has constrained me to call
together, in extra session, the peoples
representatives in congress, to the end
that through wide and patriotic exer-
else of the legislative duty with which
they solely are charged, present evils
may be mitigated, and dangers threat
ening the future may be averted. Our
unfortunate
Financial Plight
is not the result of untoward events nor
of conditions related to our natural re-
sources; nor is it traceable to any of
the Affections which frequently check
national growth and prosperity. With
plenteous crops, with abundant promise
OF remunerative production and manu-.
facture; with unusual invitation to
safe Investment, and with satisfactory 1
assurance to business enterprise, sud-t
denly financial distrust and fear have
sprung upon every side. Numerous
moneyed institutions have suspended
because their abundant assets were not
Immediately available to meet the de-
mands of frightened depositors; sur
ViVlnp pOrOOratiOpc and
too content to keep in hand the money
they are 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 fast be-
coming coniectural, and loss and fall
ure have invaded every branch of busi-
ness. believe these things are prin-
cipally chargeable to
Congressional Legislation
touching the purchase and coinage Of
silver by the general government.
This legislation is embodied in a
statute passed on the 14th day of July,
1890, which was the elimination of
much agitation on the subject involved,
and which may be considered a truce
after the long struggle between the ad-
vocates of free silver coinage and those
intending to be more conservative.
Undoubtedly the monthly purchases
by the government of 4,5O0,OO0 ounces
of silver forced under that statute were
regarded by those interested in silver
production as certain guaranty of its
increase in price. The result, however,
has been entirely different, for immedi-
ately following spasmodlc 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 effort in
the direction of free silver coinage.
Meanwhile, not only are the evil eff
fects of the operation of
The Present Law
constantly accumulating, but the result
to which its execution must inevitably
lead is becoming palpahle to all who
give the least heed to financial subjects.
This law provides that in payment of
the 4,500,OO0 ounces of silver bullion
which the secretary of the treasury is
commanded to purchase monthly, there
shall be issued treasury notes, redeem
able, on demand, in gold or silver coin,
at the discretion of the secretary of the
treasury, and that the said notes may be
reissued. 1t is, however, declared in
the act to be 1.-The established policy of
the United 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"
This declaration so controls the action
of the secretary of the treasury as to
prevent his exercising the discretion
nominally vested in him, if by such
action the parity between gold and
silver may be disturbed. Manifestly a
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 silver, and would destroy the
parity between the two metals by es-
tablishing a discrimination in favor of
gold.
Up to the 18th day of July, 1898,
these notes had been issued in payment
of silver bullion purchased to the
amount of more than one hundred and
forty-seven millions Of dollars. While
all but very small quantity of this
bullion remains uncoired 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 between the 1st day of
May, 1892. and the Is day of July, 1898,
the notes of this kind issued in payment
for silver bullion amounted to little
more than s54, 100000. and that during
the same period about S40,0000OO were
paid by the treasury in gold for the re-
demption of such notes.
The policy necessarily adopted of
paying these notes in gold has not
spared the gold reserve of 800, 100000
long ago set aside by the government
for the redemption of other notes, for
this fund has already been subjected to
the payment of new obligations amount
ing to about S150,000,000 on account of
silver purchases. and has as a conse-
quence, 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 appreciatiye nations to add it to
their stock. That the opportunity we
have afforded has not been neglected is