Huntsville gazette., 1893-08-12
PRESIDENTS MESSAGE.
PRESIDENT Cleveland and the Pre-
vailing Monetary Condition.
The Facts Laid Before Congress and the
Necessity of Prompt, Intelligent
and Conservative Action
Briefly Urged.
HOUSE.

chaplain, Rev. DR.. Hadaway. The jour
nal, which was a rather lengthy one,
was then read and approved, and the
house then took a recess until 1915
D. m.
After the recess, Mr.. Springer Qll.),
chairman of the committee appointed
to wait upon the president, reported
that the president would communicate
in writing message to congress forth
with.
Instantly Mr.. Pruden, one of the
presidents secretaries, made his bow
and sent the important document to the
clerks desk where it was read by Clerk
Kerr.
The Message.
To THE CONGRESS OF THE UNITED STATES
The existence of alarming and extraor-
binary business situation, involving the well
| fare and prosperity of all our people, has con
strained me to call together in extra session
| the peoples representatives in congress, to
| the end and 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.
Our unfortunate Hnancldl pllgHJ Is NOT lHc re-
suit of un toward events nor OF conditions re-
lated to our natural resources nor is it tracea-
| BILE to any of the Affections which frequently
check national growth and prosperity. With
| plentcous crops, with abundant promise OF re-
| munerative production and manufacture, with
| unusual invitation to safe investment and with
| satisfactory Ass surance to business enterprise,
suddenly financial dstrust and fear
| havo sprung up on every side
| Numerous moneyed institutions have
| suspended because abundant assets were
| not Immediately available to meet the demands
| OF frightened depositors. Surviving corpora
tions 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.
THE SOURCE OF DIsTRUsT.
believe these things are principally charge
allie to congressional legislation touching the
purchase and coinage of silver by the general
government. I his legislation is embodied in
a 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 n truce, after a long struggle, be-
tween the advocates of free silver coinage
and those intending to he more conservative.
A DISAPPOINTING RESULT.
Undoubtedly the monthly purchases by the
government of 4.5000O0 ounces of silver, en-
forced under that statute, were regarded by
those interested in silver production as a GER
tain guaranty of its increase in price. The re-
suit however has been entirely different. for
Immediately following q 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
EVIL EFFECTS ACCUMULATING.
Meanwhile, not only are the evil effects Of the
operation OF the present law constantly accu-
mulating, but the result to which its execution
must inevitably lead is becoming palpable to
all who give the least heed to financial sub
jects. This Law provides that in payment for
the 500 900 ounces OF silver bullion, which the
secretary of the treasury is commanded to pur-
chase monthly, there shall be issued treasury
notes redeemable on demand in gold or silver
coin, at the discretion of the secretary OF the
treasury and that said notes may be reisSued.
NO DISCRETION LEFT THE SECRETARY.
1t is, however, declared IN tho act to be 1.-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
so controls the action of the secretary of the
treasury as to prevent him exercising the dis
cretion nominally vested in him. IL by such
action the parity between gold and silver
may be disturbed. Manfestly refusal by
the secretary to pay these treasury notes
in gold. if demanded, would necessarily result
in their discredit and depreciation as obliga-
tions payable only in silver, and would destroy
the parity between the two metals by establish
ing discrimination in favor OF gold.
THE GOLD DRAIN EXPLAINED.
Up to the fifteenth day of July, 1893. these
notes had been issued in payment OF silver
bullion purchases to the amount of more than
s147 OOo 900. While all but a very small
quantity of this bullion remains uncoined and
without usefulness in the treasury, many OF
the notes given in it's purchase have been paid
in gold This is illustrated by the state
ment that between the 1st day of May, 1892,
and the 18th day Of July, 1893, the notes of
this kind issued in payment for silver bullion
amounted to little more than 54,0ooO0O, and
that during the same period about S49,OOO,0o0
were paid out in gold for the redemption of
such notes.
THE GOLD RESERVE NOT SPARED
The policy necessarily adopted Of paying
these notes in gold has not spared the gold re-
serve of 500 900 900 long ago set aside by the
goyernm ent fer the redemption of other notes,
for this fun has already been subjected to
the pavment OF new obligations amounting to
about $500 900 on account OF silver pur-
chases. and as a consequence has, for the hrst
time since its creation, been encroached upon.
we have thus made the depletion OF our gold
easy. and have enabled other and more appre-
ciatiye nations to add IL to their stock.
That the opportunity we have offered has not
been neglected is shown by the large amounts
of gold which have been recently drawn from
our treasury and exported to increase the
financial strength of foreign nations
EXPORTS AND IMPORTS OF GOLD.
The excess of exports of gold over its imports
for the year ending June 80, 1893. amounted 10
more than So, SOC, 600 Between the first day OF
July. 1880, and the fifteenth day OF July, 1898
the gold coin and bullion in our treasury de-
creased more than sl32, 100000, while during
the same period the silver coin and bullion In
the treasury increased more than sl47 7,ooo,ooo.
AN INEVITABLE CONSEQUENCE
Unless government bonds are to be con-
etantly issued and sold to replenlsh our eA
hausted geld, only to be again exhausted. u Is
apparent that lbs eperatpa 81 tas sssfs fas'