The star. (Reynoldsville, Pa.) 1892-1946, 1893-08-16
THE PRESIDENTS MESSAGE
UNCONDITIONAL REPEAL
Ofthe Silver Purchase Clause Asked for
and Tariff Revision Afterward.

IueSday. ltb as follOws.
To The Congress Of the United States:
The existence OF an arming and extra.
ordinary business situation, involving the
welfare and prosperity Of ali our people,
has constrained me to cal together in extra
session the peopl.'s representatives in Com
gress, 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 threat
ening the future may be averted.
Our unfortunate financial plight is not
the result of untoward events nor of condi-
tions related to our natural resources, nor Is
u traceable TO any of the Affections which
frequently check national growth and
prosperity. With plenteous crops, with
abundant promise of remunerauve produc-
tion and manufacture, with unusual invita-
ton to safe investment and with satisfactory
assurance to business enterprise suddenly
financial distrust and fear have sprung up
on every side. Numerous moneyed institu.
tions have suspended because abundant
assets were not Immediately available 10
meet the demands OF frightened depositors.
Surviving corporations and individuals are
content 10 keep in hand the money they are
usually anxious TO loan, and those engaged
in legitimate business are surprised to md
that the securities they offer for loans,
though heretofore satisfactory are no longer
accepted. Values supposed to be fixed are
fast becoming conJectural and losses and
failures have invaded every branch OF
business. | believe these things are princi.
pally chargeable TO congressional legislation
touching the purchase and coinage OF silver
by the general government.
The legislation is embodied in a statute
passed on the 18th day o. July, 1892 which
was the elimination Of much agitation on
the subject involved and which may be
considered truce after long struggle
between the advocates of free silver coinage
and those intending to be more conservative.
Undoubtedly monthly purchases by the
Government of 4, 500, 600 ounces of silver en-.
forced under that statute were regarded by
those interested in silver p OduCtion a, a
certain guaranty of its increase IN price.
The result however, bas Deen entirely diff
ferent, for Immediately following q spasmo
die and slight rise the price OF shver began
70 fall after the passage OF the act and has
since reached the lowest point ever known.
This disappointing result has led 10 renewed
and persistent effort in the direction OF free
silver coinage.
Meanwhile not only are the evil effects Of
the operation of the present law constantly
accumulating, but tue result to which its
execution must inevitably lead is becoming
palpable to all who give least heed to II nan.
cial subjects.
This law provides that in payment for
the 500 900 ounces Of silver bullion which
the Secretary Of the Treasury is command
ed to purchase monthly, there shall be 10.
in gold or silver coin, at the discretion of
the Secretary Of the Treasury, and that said
notes may not be reissued. II is, however,
declared in the act 10 be the established
policy OF the United States to maintain the
two metals on a parity with each other upon
the present legal ratio or such ratio us may
be provided by law"
This declaration 80 controls the action of
the Secretary OF the Treasury as TO prevent
his exercising the discretion nominally
, vested in him, il by such action the parity
between gold and silver may be disturbed
MaDifestly refusal by the Secretary to pay
these treasury notes in gold, II demanded
would necessarily result in their discredii
and depreciation as obligations payable
only in silver, and would destroy the parity
between the two metals by establishing o
discrimination in favor OF gold.
Up to the 18th day OF July, 1893 these
notes had been issued On payment Of silver
bullion purchases 10 the amount of $147,.
600 600 While ali but u very small quantity
OF this bullion remains uncoined and with
out usefulness in the Treasury, many of the
notes gwen 10 IT'S purchase have been paid
in gold. This is illustrated by the statement
that between May |, 1892 and July Is, 1888,
the silver bullion amounted to a little more
than t5i, 600 600 aud that during the same
period 1900 600 were paid to the
Treasury in gold for the redemption of such
notes.
The policy necessarily adopted OF paying
the notes in gold has not spared the gold re.
serve of el0O, 900 900 long ago set aside BY
the Government tor the redemption of other
notes, for this fund has already been sub
Jected to the payment of new obligations
amounting to about $3.50, 600, 900 on account
OF silver purchases and has as consequence
for the first lime since its creation been en-
croached upon. We have thus made the
depletion of our gold easy and have tempted
other and more apprecative nations To add
n N ThnI gha ss.,..,
have offered has not teen neglected is
SHOWN by the large a cunts OF goll which
have been recently drawn from our treasury
and exported to increase financial strength
OF foreign nations. The excess OF EXPORTS OF
gold over its imports for the year ending
June 80, 1888. amounted to more than <s7,-
oOO, 700. Between the first day Of July, 1890,
and the 18th day Of July, 1898 the gold coin
and bullion in our Treasury decreased more
than Sl32OO0,OO0, while during the same
period the silver coin and bullion in the
Treasury increased more than $l47 600, 900.
Unless Government bonds are to be con-
stantiy issued and sold 10 repenish our ex-
hausted gold only to be again exhausted, it
10 apparent that the operation of the silver
purchase law now in force leads in the di-
rection OF the entire substitution OF silver
Tor the gold in the Government Treasury,
and that this must be followed by pay ment
silver
At this stage gold and silver must part
company, AMI 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 to standard
OF the commercial world. we could no long.
er claim place along the nations of the
hrst class nor could our Government claim
performance of its obligations. SO far as
such an obligation has been imposed upon
It. to provide for the use OF the people the
best End safest money. II, as many of its
friends claim.slver ought to occupy q larger
place In our currency and the currency Of
the world through general international CO.
operation and agreement, and il is obvious
that the United States will not be in a posi-.
tion TO gain a hearing in favo of such an
arrangement 80 long as we are willing to
rontinueour attempt to accomplish the result
single handed. The knowledge in business
circles among our own people that our Gov.
ernment cannot make its fiat equivalent 10
inirins.c value, nor keep inferior u oney on
aparity with superior money by its own indie
pendent efforts has r, smile In such n lacl