Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1893-08-19
The Messape.

10 tie congress Ol IDt 'libSp Dthtts .
The existence Of an alarming and extra
ordinary business situation, involving
the welfare and prosperity OF all our peo-
pie, has constrained me To call together
In extra session the peoples representa-
tivcs in congress, TO the end that through
a wise and patriotic exercise OF the legis-
lative duty with which they solely are
charged, present evils may be mitigated
and dangers threatening the future may
be avertsd.
Our unfortunate financial plight is not
the result of untoward events nor OF con
ditions related tn our natural resourceSs
nor Is Is traceablc to any OF the alhlctlQns.
invftation to safe investment and27Yt
satisfactory assurance TO business erter.
prise, suddenly financial distrust and fear
have appeared upon every side. Numer
Gus moneyed institutions have suspended
business with abundant assets which
were not immediately available tC
meet the demands OF frightened
depositcrs. Corporations and individual.
are content to keep in h,n ! the money
they are usually anxious &, loan, and
those engaged in legitimate business are
surprised to find that the securities they
offer for loans. though heretofore salts.
factory, are no longer accepted. Values
supposed to be liked are fast becoming
conjectural, and loss and failure have in,
Ndutd Every DTdHtu VI puSlutSS
Principally chlrgsabIe to Silver.
| believe these things are principally
c~hargcable to congressional Legislation
touching the purchase and coinage of sill
yer by the general government.
This legislation is embodied in a statute
assed on the l4th day of July, 1890, which
was the elimination Of much agitation on
the subject involved, and which may be
considered a truce, after IA long struggle,
between tho advocates of free silver coin.
age and those intending to be more conserv.
alive. Undoubtedly the monthly purchases
by the government of 4.5C0, 900 ounces Of
silver, enforced under hat statute, were
regarded by those interested in silver pro,
duction as a certain guarantee Of its in
crease In price. The result, however, has
been entirely different for, Immediately
following n spasmodic and slight rise, the
price OF silver began to fall after the
passing OF the act and has since
reached he lowest point ever
known. This disappointing result
has led to renewed and per.
sistsnt effort in the direction of free sill
yer coinage. Meanwhile not only are the
evil effects OF The operations of the pres
ont law constantly accommodating. but the
result to which it's execution must inevita.
bly, lead Is becoming palpable to all who
give tho least heed to financial subjects.
This law provides that in payment
ment for the 4 100 900 ounces of silver bull
ion which the secretary of the treasury is
commanded to purchase monthly, there
shall be issued treasury notes r~edcemabie
on demand In gold or silver coin, at the
discretion OF the secretary OF the trea-
sury, and that said notes may be re-is-
sued. 1t is, however, declared In the act
to be 1.-THE established policy OF the United
states to maintain the two metals on a
parity with each other on 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, IL by
such action the parity between gold and
silver may be disturbed. Manifestly q
refusal by the secretary to pay these
treasury notes in gold, IL demanded,
would necessarily result in their discrcdit
and depreciation as obligations payable
only In silver, and would destroy the
parity between the two metals by estab-
fishing u discrimination in favor of gold.
Up to the 18th day Of July. 1893, these
notes had been issued In payment OF sill
yer bullion purchases TO the amount of
more thar $l47. 000, 900. While all but q
very small quantity Of this bullion re-
fulness in the treasury, man 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 18th day of July. 1891.
the notes OF this k nd issued in payment
for silver bullion amounted to q little
more than S54, 900 100. and that during the
same period about s49. OCO, 600 were paid
by the treasury in gold for the redemp-
ton OF such notes.
Encroac,ed on ths Gold Ressrv,.
The policy necessarily adopted of paw
Ing these notes in gold has not spared the
gold reserve of 500, oC0. COO long set aside
by the government for the redemption Of
toher notes, for this fun has already been
subjected to the pay ment Of new oblipa-
lions amounting to about $3.50, 600. O0O on
aecOunt Of silver purchases. and has
- o consequences, for the first
time since its creation, been encroached
We have thus made the depletion OF
our gold easy, and have tempted other
and more appreciative nations to add II TO
their stock. That the opportunity we
offered has not been neglected n
shown by tho la'ge amount Of gold which
have been recently drawn from our treas
ury and exported to increase the financial
strength OF foreign nations.
The excess Of exports of gold over is
imports for the year ending June 30, 1891,
to over $S7 ,500,OUO Between the
LIST day OF July, 1890, and the 10Th day
Of July, 1893, the gold coin and bullion In
oar treasury decreased more than ti83..
0OO. 600, while during the same poriod the