The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1893-08-23

Rr6SS, TO the onQ Cn8t through q wise ana
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.
FINANCIAL SITUATION EXCEPTIONAL.
Our unfortunate financial plight Is not the
result OF untoward events nor Of conditions
related to our natural resources, nor Is 1t
traceable to any OF the Affections which fire.
quently check National growth and pros
perity.
With plenteous crops, with abundant prom
ise OF remunerative production and manu-
facture, with unusual invitation to safe in
vestment and with satisfactory assurance to
business enterprise, suddenly financial dis
trust and fear have sprung up on every side.
Numerous moneyed institutions have sus-
pended because abundant assets were not
Immediately available to meet the demands
OF the frightened depositors.
BUSINESS CREDIT WEAKENED
Surviving corporations and individuals are
content to keep in land 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 satisfsct Dry, are no longer
fast becoming conjectural, and loss and
failure have involved every branch OF busi-
ness.
LEGISLATION TO BLAME.
I believe these things are principally
chargable to Congressional legislation touch
ing the purchase and coinage Of silver by the
general Government.
THE SHERMAN LAW.
This legislation is embodied in statute
passed on the 14th day Of July, 1890, which
was elimination Of much agitation on the
subject involved, and which may be consid-
cred q truce after a long struggle, between
the advocates Of free silver coinage andthose
intending to be more conservative.
Undoubtedly the monthly purchases by the
Government OF 500, 900 ounces Of silver en-
forced under the statute were regarded BY
those interested in silver production as GER
tain guaranty OF its increase In price.
THE FALL IN SILVER.
The result, however, has been entirely Diff
ferent, for Immediately following spas
modic and slight rise. the price OF silver be-
gan 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 frre silver coinage.
EVIL EFFECTS OF THE Law.
Meanwhile not only are the evil effects OF
the operation Of the present law constantly
accommodating, but the result to which Its
execution must inevitably lead Is becoming
palpable to all who give the least heed to
financial subjects.
ITS PROVISIONS.
The law provides that In payment for the
four million and five hundred thousand
ounces Of silver bullion which the Secretary
OF the Treasury Is commanded to purchase
Gholl ho r1yV
notes redeemable on demand in gold or sill
yer coin, at the discretion Of the Secretary
OF the Treasury, and that said notes may be
reissued 1t Is. however, declared in the act
to be 1.-The established policy OF the United
States to maintain the two metals on par
ity with each other, upon the present legal
ratio. or such ratio as may be provided by
law"
TREASURY HAMPBRED BY THE Law.
This declaration 80 controls the action Of
the Secretary OF the Treasury to prevent his
exercising the discretion nominally vested In
him, II by such action the parity between
gold ana silver may be disturbed.
Manifestly, / refusal by the Secretary to
pay these Treasury notes in gold, II de-
manded, would necessarily result in their
dscredit and depreciation as obligations
payable only in silver. and would destroy tho
parity between the two metals by establish.
ing discrimination In favor OF gold.
Up to the 18th day of July. 1893. these
notes had been issued in payment Of silver
bullion purchases to the amount OF more
than $147. 200, 900.
While all but very small quantity OF tins
bullion remains uncoined and without use
fulness In the Treasury, many OF tho notes
given in its purchase have been paid in gold.
GOLD RESERVE NOT SPARED.
The policy necessarily adopted OF paying
these notes In gold has not spared the gold
reserve of S1O0, 200, 900 long ago set aside by
the Government for the redemption OF other
notes, for this fund has already been SUBJ
jected to the payment OF new obligations,
amounting to about $3.50, 900, 900 on account
ofslver purchases, and as 4 consequence for
the first time since its creation been en-
croached upon.
OTHER NATIONS PRoFITED.
We have thus made the depletion OF our
gold easy, and have tempted other and more
appreciative Nations to add 1t to their stock.
That the opportunity we have offered hns
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. The excess OF exports Of gold over
Its imports for the year ending June ~, 1898,
amounted to more than S87. 500 900.
THE SILVER DANGER.
Between July 1, 1890, and July Is, 1898.
the gold coin and bullion in our Treasury
decreased more than S1S2, 900, ,00O while
during the same period the silver coin and
bullion In the Treasury increased more than
S147 200, 900. Unless Government bonds are
to bs constantly issued and sold to replensh
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 substitution OF
silver for the gold In the Government Treas
ury, and that this must be- followed by the
payment of all Government obligations in
deprecated silver.
At this stage gold and silver must part
company and 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 a currency
greatly deprecated according to the stand
ard OF tho commercial world, we could no
longer claim 4 place among Nations OF the
first class. nor could our Government claim
q 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 and safest money.
CANT 90 sINGLE-HASDED.
If, "a many OF its friends claim, silver
ought to occupy larger place IN our cur
rency and the currency OF the world through
genera 1nIernarlonal cooperation and agree
ment, it is obvious that the United States
will not be in position to gain hearing in
favor of such an arrangement 80 long as We
are willing to continue our attempt to accom-
pish the result single-handed.
EFFECT OF UNSTABLE MONEY.
The knowledge in business circles among