Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1893-08-12
THE MESSAGE.
President Cleveland Discusses the
Financial Problem.
Attributes Panic to Congressional Silver
iation-Recommends Repeal
of Purchasing Clause.
THE PRESIDENTS VIEWS.

To THE CONGRESS OF THE UNITED STATES:
The existence of an alarming and en-
traordinary business situation, involv-
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, througha wise and patriotic cXer-
else of the legislative duty with which
they solely are charged, present evils
may be mitigated and dangers threaten
ing the future may be averted.
The Unfortunate Financial Plight.
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 atllictions which frequently check
national growth and prosperity. With
plenteous crops, with abundant prom
Use of remunerative production and
manufacture, with unusual invitation
to safe investment and with satisfac-
tory assurance to business enter.
prise, suddenly financial distrust
and fear have sprung up on every
side. Numerous moneyed institutions
have suspended because abundant
assets 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 to find that the
securities they offer for loans, though
heretofore satisfactory. are no longer
accepted. Values supposed to be fixed
are fast becoming conjectural, and loss
and failure have invaded every branch
of business.
Attributed to Congressional Legislation.
believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of
silver by theEeneral government. This
legislation is embodied in statute
passed on the 18th day of July, 1890,
which was the elimination of much
agitation on the subject involved, and
which may be considered a truce, after
long struggle, between the advocates
of free silver coinage aud those intend
ing to be more conservative.
Silver Depreciation.
Undoubtedly the monthly purchases
by the government of 1900, 900 ounces
of silver, enforced 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, Immediately following spasmodic
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.
Future Results.
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 in
evitably lead is becoming palpable to
all who give the least heed to financial
subjects. This law provides that in
payment for the 800, 900 ounces of sill
yer bullion, which the secretary of the
treasury is commanded to purchase
monthly, there shall be issued treasury
notes redeemable on demand in gold or
silver coin, at the discretion of the sec
retary of the treasury, and that said
notes may be reissued.
Parity Between Gold and Silver.
1t is, however, declared in the act to
be ''the established policy of the United
States to maintain the two metals on
parity with each other upon the present
legal ratio, or such ratio as may be pro-
yided by law" This declara ton so
controls the action of the secretary of
the treasury as to prevent his eXercis-
ing the discretion nominally vested in
him, if by such action the parity be-
tween gold and silver may be disturbed.
Manifestly refusal by the secretary
to pay these treasury notes in gold, if
demanded, would necessarily result in
their discredit and depreciation as OBJ
legations payable only in silver, and
would destroy the parity between the
two metals by establishing discrimi-
nation IN favor of gold.
Redemption in Gold.
Up to the fifteenth day of July, 1898,
these notes had been issued in payment
of silver bullion purchases, to the
amount of more than one hundred and
forty-seven millions of dollars While all
but very small quantity of this bullion
remains uncoined and without useful
ness in the treasury, many of the notes
given in its purchase have been paid in
gold. This is illustrated by the state
ment that between the first day of May
1892, and the fifteenth day of July, 1898
the notes of this kind issued in pay
ment for silver bullion, amounted to
little more than fifty-four millions o
dollars, and that during the same
period about forty-nine millions of dol
lars were paid by the treasury in golC
for the redemption of such notes
Gold Depletion.
The policy necessarily adopted of pay
ing these notes in gold has not spared
the gold reserve of 800, 0O0, 600 long az,
set aside by the government for the he
demption of other notes, for this funt
has already been subjected to the pay
ment of new obligations amounting Il
about $3.50, 900, 900 on account of silve
purchases, and has, as consequence
for tho first time Sinca its craatioi