Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-08-17

Coudy. IL ucdlS euIIEely WIN the Il
nancial situation and urges the immedi
ate repeal of the Sherman silver pur-
chase act. 1t is as follows:
TO the Congress of the United
States: The existence of an alarming
and extraordinary business situation,
involving the welfare and prosperity
of all our people, has constrained me
to call together in extra session the peo-
pies representatives in congress, to the
end 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 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 renumeraive production and manu-
facture, with unusual invitation to
safe investment and with satisfactory
assurance to business enterprise, sud
denly financial diStruSt and fear have
sprung up on every side Numerous
monied institutions have suspended be-
cause abundant assets were not imme-
diately available to meet the demands
of frightened depositOrs; surviving cor
poratiOnS and individuals are content to
keep in hand the money they are usu-
ally 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 sup
posed to be fixed are fast becoming
conjectural, and loss and failure have
invaded every branch of business.
Il believe these things are princi-
pally chargeaLle to congressional legis-
lation touching the purchase and coin
age of silver by the general govern
ment This legislation is embodied in
statute passed on the 18th day Of
July, 1890, which was the elimination
of much agitation on the subject in
volved, and which may be considered
a truce, after the long struggle, between
the advocates Of free silver coinage
and those intending to be more con-
SeryatiVe.
Undoubtedly the monthly purchases
by the government of 100000 ounces
of silver, forced under that statute,
were regarded by those interested in
silver production as a certain guaranty
of its increase in pnce. The result,
however, has been entirely different,
for Immediately following a spaSmodic
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 per-
sistent efforts in the direction Of free
silver coinage.
Meanwhile not only are the evil
effects of the operation of the present
law constantly accommodating, but the
result to which its execution must in
evitably lead is becoming palpable to
all who give the least heed to financial
subjects This law provides that i'll
payment for the 100000 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 re-issued. 1t
is, however, declared in the act to be
the established policy of the United
States to maintain the two metals
upon 4 parity with each other upon the
present legal ratio or such ratio as
may be provided by law This decla-
ration so controls the action of the
secretary of the treasury as to prevent
his exercising the discretion nOminally
vested in him, if by such action the
parity between gold and silver may be
disturbed. Manifestly a refusal by the
secretary to pay these treasury notes il
gold. if demanded, would necessarily re
suit in their discredit and depreciation
as obligations payable only in silver
and would destroy the parity between
the two metals by establishing a dis
elimination in favor of gold.
up to the 18th day of July, 1893
these notes had been issued in paymen
of silver bullion purchased, to the
amount of more than S147,O0O, 900
While all but very small quantity O
this bullion remains uncoined and with
out usefulness in the treasury, man!
of the notes given in its purchase hav,
been paid in gold. This is illustra tee
by the statement that between the frs
day Of May, 1892, and the 18th da,
of July. 1898, the notes of this kline
issued in payment for silver bullion
amounted to little more than S54
100000. and that during the same pc
Rod about S49,OO0OOO were paid b.
the treasury in gold for the redemT
ton of such notes.
THE policy necessarily adopted o
paying these notes in gold has no
spared the gold reserve of S1O0000,OO
long ago set aside by the government
for the redemption of other notes, TO
this fund has already been subjected t
the payment Of new obligations amount
ing to about S150,000,OOO on account @
silver purchases and has as a const
quence, for the first time since it's ere
alton, been encroached upon,
1--WE have thus made the depIetio
of our gold easy, and have temple
other and more appreciative nation
to add it to their stock. That the OF
portunity we have offered has not bee
neglected, is shown by the lare
amounts of gold which have been r.
Gently withdrawn from our treasur
and exported to increase the financi;