The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-08-16

volving the welfare and prosperity of
ali our people, has constrained me to
call together, in extra session, the peO-
pies representatives in congress to the
end that by their wise and patriotic ex-
ercise of the legislative duty, with which
they solely are charged. present evils
may be mitigated and dangers threat
ening the future may be averted.
Our unfortunate financial plight is
not the result of untoward events, nor
Of conditions related to our natural re-
sources, 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 We're not Immediately
available to meet the demands Of fright
ened 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 surprised to
find that the securities they offer for
loans, heretofore satisfactory, are no
Legislation II -sponsibIe.
longer accepted. Values supposed to
be fixed are fast becoming conjectural,
and loss and failure have invaded every
branch of business.
81 believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of
silver by the general government. This
legislation is embodied in a statute
passed on the 18th day of July. 1890.
which was the elimination Of much agi-
tation on the subject involved. and
which may be considered a truce, after
the long struggle between the advocates
Of free-silYer coinage and those intend
ing to be more conservative.
Undoubtedly the monthly purchases.
by the government, of 4,5OOOOO ounces
of silver, enforced under that statute.
were regarded by those interested in
silver production, as a certain guaranty
Of its increase in price. The result.
however, has been entirely different for
Immediately following a 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 i'm
the direction Of free silver coinage.
Meanwhile, not only are the evil effects
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
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
shall be issued treasury notes, redeem
able on demand in gold or silver coin.
at the discretion of the secretary of the
treasury, and that said notes NAV be
re-issued. 1t is, however, declared i'm
the act to be 1.-The established policy of
the United States TO maintain the two
meals on a party, with each other on the
present legal ratio, or such ratio as may
be provided by law"
This declaration 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 sill
yer may be disturbed. Manifestly a re-
fusal by the secretary to pay these
treasury notes iL gold, If demanded,
would necessarily. result in their dis
credit and depreciation as obligations
payable only In silver would destroy
the parity between the two metals by
establishing a discrimination in favor
OF gold.
up to the 18th day Of July, 1898
these notes had been issued in payment
Of silver bullion purchases TO the amount
of more than 147 OO0,0OO While all but
a very small quantity of this bullion re-
mains uncoined and without usefulness
in the treasury, many Of the notes given
in its purchases have been paid in gold.