Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1893-08-10
THE MESSAGE READ
President Urges Prompt Re-
peal Of Silver Law.
DUTY OF THE HOUR PRESENTED.

DUTY OF THE HOUR PRESENTED.
Financial Plight Due to Congressional
silver Legislation - People Ara I'm
titled to Money Good on Any Exchange
In the World Depletion of Gold Has
Been Easy-CaIm Coun.eis Asked.
WASHINGTON, Aug. S-President Cleve-
lands message was read in congress today.
IL was as follows:
To the congress o: the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people.
has constrained me to call together in ex-
ira session the peoples represent natives in
congress 70 the end that through a wise
and patriotic exercise OF the legislative
duty with which they solely are charged,
present evils may be mitigated and dan
gers threatening the future may be
averted
Our unfortunate financial plight is not
the result OF untoward events nor of CON
ditions related to our natural resources.
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
manufacture. with unusual invitation TO
safe investment and with satisfactory as
surance TO business enterprise, suddenly
financial distrust and fear have sprang up
on every side
Numerous moneyed institutions have
suspended because abundant assets were
not Immediately available 70 meet
The Demands If Frightened Depositors
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 sur
prised to find that the securities they Of
fer for loans. though heretofore satisfac-
tory. are no longer accepted.
Values supposed TO be fixed are fast he
coming conjectural, and loss and failure
have involved every branch Of hn,iness
believe that these things are princi-
pally chargeable TO congressional legisla-
ton touching the purchase and coinage OF
silver by the general government
This legislation is embodied in a statute
passed on he lith day OF July. 1892. which
was the elimination of much agitation on
the subject involved. and which may be
considered a truce. after a long struggle
between the advocates OF free silver coin
age and those intending to b. more con-
sentative.
Undoubtedly the monthly purchases by
the government Of $4,000 ounces Of sill
yer, enforced under the statute. were re
earded by those interested in silver pro-
duction rs a certain guaranty Of its in
crease in price
The result, however, has been entirely
different, for Immediately following
spaslnodic 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 re-
newed and persistent effort in the dlrec-
ton Of free silver coinage.
Meanwhile, not only are the evil effects
Of the operation Of the present law con-
stantly accommodating, but the result to
which It's execution must inevitably lead
is becoming palpable to all who give the
least heed to financial subjects
This law provides that in payment for
the s,J1pr ounces OF silver bullion which
the secretary OF the treasury +. COM
manded 10 purchase monthly. there shall
be issued treasury notes, re,leemable on
demand in gold or silver coin. AZ the
discretion Of the secretary Of the treasury,
and that "a d notes may be lel>sued
Il Is, however, declared in the act to be
the established policy OF the United
States 10 maintain the two luetals on a
parity with each other upon the present
legal ratio or such ratio as may be pro
vided by law ~
This declaration so controls the action
of the secretary Of the treasury rs to pre-
vent his exercising the discretion nonli-
nally invested IN him, il by such action
the parity between gold and silver may be
disturbed. Manifestly a refus al by the
secretary to pay these treasury notes in
gold, II demanded, would necessarily ~
suit in their discredit and depreciation as
obligations payable only in silver, and
would destroy the parity between the two
metals by establishing
Discrimination In Favor of Gold
Up TO the 18th day Of July, 1893, these
notes had been issued in payment Of silver
bullion purchased TO the amount of more
than Sli7 .oo0eO. While all but very
small quantity Of this bullion remains
uncoined 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
May /. 1892 and July Is, 1898, the notes Of
this kind issued in payment for silver
bullion amounted 10 a little more than
80 900, and that during the same
period about $40 90, 900 were paid by the
treasury IL gold for the redemption Of such
notes.
The policy necessarily adopted of paying
these notes in gold has not spared the gold
reserve Of 500, 900, 90, 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 obliga-
lions amounting TO about $50 Op0, 900 on
account OF silver purchases and as a con-
sequence 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 appre-
:iative nations to add it to their stock.
That the opportunity we have offered
has not been neglected is shown by the
large amounts Of gold which have been re-
gently drawn from our treasury and ex-
ported TO increase the financial strength
of foreign nations The excess of exports
of gold over its imports for the year end
ing June 30, 1898, amounted TO more than
ST., $1,000
Between the first day of July, 1899, and
the 18th day of July, 1898, the gold coin
and bullion in our treasury decreased
more than t132 900 900, while during the
same period the silver coin and bullion in
the treasury increased more than sl47,-
00O, 900
Unless government bonds are to be con-
sanity issued and sold to replenish our
exhausted gold, only TO be again ex-
hausted, it is apparent that the operation
of the silver purchase law now in force
leads in the direction Of the entire substi-
tuition Of silver for the gold in the govern
ment treasury. and that this must be fol-
lowed by the payment Of all government
obligations In depre ciatsd silver. At this
stage
Gold and Silver Must Part Company
and the government must fail in its es-
taolished policy 70 maintain the two
metals on parity with each other
Given over to the exclusive use Of cur
rency greatly deprecated according to the