Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1893-08-16
THE MESSAGE.
Cleveland Gives Congress His Fin.
ancial Views.
Free Silver Not Favored. Wants
Sound Currency.

Washington, August, S.-The Presi-
dent sends the following message TO
Congress today.
To the Congress of the United States:
The existence of an alarming and
extraordinary business situation in.
volving the welfare and prosperity Of
all our people, has constra ned me to
call together in extra session, TIA. peo-
pies representatives in Congress, to the
end that through 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 averted.
Our unfortunate financial plight is not
the result of untoward events, nor of
conditions related to our national re-
sources. Nor is it traceable to any of
the Affections which frequently check
national growth and prosperity With
plenteOus crops, with abundant prom
ise of remunerative production and
manufacture, with unusual invitation
to safe investment, and with salts
factory assurance to business enter
prise, suddenly financial distrust and
fear have sprung up on every side
Numerous moneyed institutions have
ouonaudad hocanca abundant oooatu
were not Immediately available to
meet the demands of frightened de-
positors. Surviving corporations and
individuals are content to keep in hand
the money they are usually anxious to
loan, and those engaged in legitimate
business are surprised that the securi-
ties they offer for loans, though here
tofore satisfactory, are no longer ac-
cepted. Values supposed to be fixed
are fast becoming conjectural, and
loss and failure have invaded every
branch of business. | believe these
things are principally chargeable to
congressional legislation touching the
purchase and coinage of silver by the
general Government.
This legislation is embodied in a
statue passed on the 14th day of July,
1890, which was the elimination of
much agitation on the subject inv olved
and which may be considered truce,
after long struggle, between the ad
vocates OF free silver coinage and those
intending to be more conservative.
Undoubtedly the months purchases
by the Government of 4,500, 900 ounces
Of silver enforced under that statue,
we're regarded by those interested in
silver production as a certain guaranty
of its increase in price. The result,
however, has been entirely different
for Immediately following spasmodic
and slight rise, the price of silver be-
gan to fall after the passage of the
act, and has since reached the lowest
point ever known.
This disappointing result has led tC
renewed and persistent effort in the
direction of free silver coinage. Mean
while, not only are the evil effects O.
the operation of the present law con
stantly accumulating, but the result tt
which its execution must inevitabl,
lead is becoming palpable to all wht
give the least heed to financial sub
jects. This law provides that in pay
ment for the 4,5OO,OOO ounces of silve
bullion which the secretary of tn
treasury is commanded to purchas
monthly, there shall be issued treasur.
notes redeemable on demand in gOl
or silver coin, at the discretion of tn
secretary of the treasury, and sal
notes may be reissued. II is, how
ever, declared in the act to be 18th
Established Policy" of the Unite
States to maintain the two metals on
parity with each other upon the preser
legal ratio, or such ratio as may b
provided by law. This declaration 6
| controls the action of the secretary @
! the treasury, as to prevent his exerci
ing the discretion nOminally veste
in him, If by such action the part
between gold and silver may be di
turbed. Manifestly refusal by tn
secretary to pay these treasury nots
in gold, if demanded would necessaril
result in their discredit and depreci
j. ton as obligations payable only in 81
yer. and would destroy the parity b.
= tween the two metals, by establishir
a discrimination in favor of gold.
Up.to the 10th day of July, 1893, the
notes had been issued in payment
silver bullion purchases to the amour
J. of more than $l47, 100000. While Q
but very small quantity of this br
N tion remain uncoined and witho
= usefulness in the treasury, many of Il
notes given in purchase have been pa
in gold. This Is illustrated by q
statement that between the 1st day
' May, 1892, and. tine 10Th day of Jul
y 1893, the notes of this kind issued
payment for silver bullion amount
]. to u little more than S54, ,0OO, 900, al
:, that during the same period abo
$49, ,000, 900 were paid by the treasu
in gold for the redemption of su
IS notes. The policy necessarily adopt
of paying these notes in gold has n
Y. spared the gold reserve of OO,OOO,O ,O
ro long ago set aside by the Governme
= for the redemption of other notes,
this fund has already been subject
to the payment of new obligatio
n amounting to about $15O,OOO,OO0
U, account of silver purchases, and h
as a consequence, for the first ii