Evening journal., 1893-08-08
WITHOUT DELAY E!
The President Advise $
Congress to Repeal
AN UNSUCCESSFUL LAW
Tariff Reform Can Wait But FL
nances Need Immediate Attention

President Cleveland SUBMITTED His Mes
sage to Congress, Assembled in Special
Session at IL. .45 This Afternoon-Hes Says
the First and the Last to Feel Financial
Disaster and Should BE Helped Imme-
diatsIy.
WASHINGTON, Aug. SIN the Senate to-
day George G Perkins, appointed sena-
tor from California was sworn in. The
Senate then took recess till 1245 when
the Presid ent's message was read
In the hovse prayer was offered by the
new chaplain Rev. Dr. Haddaway.
The Journal was read and approved
and the House took recess until 1245,
when the Presidents message was read
as follows:
"To the Congress Of the United States:
The existence of an alarming and ex-
traordinary business situation, involving
the welfare and prosperity of all our
people, has constrained me to call to-
gether in extra session the peoples
represent. .tives in Congress to the end
that through a wise and patriotic exer-
else 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
is not the result Of untoward events.
nor Of conditions 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 manu-.
facture, with unusual invitation to safe
investment and with satisfactory assur-
ance to business enterprise.
Suddenly financial distrust and
fear have sprung upon every side.
Numerous moneyed institutions have
suspended because abundant assets
were not Immediately available to meet
the demands of 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 fud that the securities they
offer for loans, though heretofore sat
isfactory, are no longer accepted.
Values, supposed to be fixed, are fast
becoming conjectural and loss and fail
are have involved every branch of bust
ness.
Silver Legislation Did 1t.
81 believe these things are princi
pally chargeable to Congressional legis
lation touching the purchase and coin
age Of silver by the general govern
ment.
"This legislation is embodied in a
statute passed on the l4th day of July.
1890 which was the elimination of much
agitation on the subject involved and
which may be considered truce, after a
long struggle between the advocates of
free silver coinage and those intending
to the more conservative.
Undoubtedly the monthly purchases
by the government OF 4. 100000 ounces of
silver, enforced under that statute, were
regarded by those interested in silver
production as a certain guaranty Of its
increase in price
Different and Disappointing Result.
"The result, however has been entirely
different, for Immediately following q
spssmodic and slight rise, the price o.
silver began to fall after the passage oi
the act and has since reached the lowest
point ever known. This disappointing
result has led to renewed aud persistent
effort in the direction of free silver coin
age.
Meanwhile, not only are the evil
effects of the operation of the present Law
constantly accumulating, but the result
TO which its execution must inevitably
lead is becoming palpable to all whC
give the least heed to financial subjects
''This law provides that in payment
for the four million and FIVE hundred
thousand ounces of silver bullion which
the Secretary of the Treasury is com
manded to purchase monthly, there shal
be issued Treasury notes redeemable oI
demand on gold or silver coin at the dis
cretion Of the Secretary Of the Treasury
and that said notes may be re
issued. It is, however, declared ii
the act to be the estab ished polio
of the United States to maintain the tw
metals on parity with each other upoi
the present legal ratio or such ratio a
may be provided by law.
This declaration so controls th
action of the Secretary of the Treasur
as to prevent his exercising the discrt
tion nominally vested In him, if by sue
action the parity between gold an
silver may be disturbed. Manifestly
refusal by the Secretary to pay thes
Treasury notes in gold, if demanded
would necessarily result in their dii
credit and depreciation as obligation
payable only in silver, and would destro
the parity between the two metals ;
establishing discrimination in favor {
gold.
up to the 18th day of July, 1S9
these notes have been issued in paymer
Of silver bullion purchases, to the amour
of more.than. $147 100000. While all bI
very small quantity of this bullion +
mains uncoined and without usefulne
in the Treasury, many Of the notes give
in it's purchase have been paid in gol
This is illustrated by the statement th
between the 1st day Of May, 1892, al
the 10th day of July, 1898. the notes
this kind issued in payment for silv
bullion, amounted to little more this
$54, 900, 900 and that during the san
period about $40 000 900 were paid b
M the Treasury In gold for the redemntic