The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-09
CLEVELAND URGES REPEAL.
Congress Urged to Lose no Time in
Acting on the Issue.

the Countrywide People Entitled to
Money That Can Hold its Head UP in
the Markets of the Whole World-The
WaEe Farmer the First to Feel the
Baneful Effects of Deprecated Cur
renoy.
Washington, D. c., Aug s.-The follow
ing is the Presidents message:
To THE CONGRESS- OF THE UNITED STATES:
Inc existence OF an alarming and extraordi-
nary business situation. involving the welfare
ana prosperity OF all our people, has con
strained me TO call together in
extra session the people 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 threaten
ing the future may be averted. Our unfortu-
nate financial plight is not the result OF un-
toward events nor Of conditions related to our
natural resources; nor is it traceable to any
OF the aihlctlons which frequently check
national growth and prosperity. with plen-
teOus crops, with abundant promise OF re
muneratlve production and manufacture with
unusual invitation 10 safe Investment and
with satisfactory assurance to business
ana Tear have sprung up on every
side Numerous moneYed institutions have
suspended because abundant assets were
not immediately available to meet the de-
mands 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 surprised
to find that the securities they
offer for loans, though heretofore satisfactory,
are no longer accepted Values supposed to
pc nXe9 are tast becoming conlectural, and
loss and failure have invaded every branch OF
business.
THE CAUSE OF THE CONDITION.
I believe these things are principally charge
able TO congressional legislation touching the
purchase and coinage OF silver by tho general
government. This legislation is embodied ina
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, aftor long struggle, be-
tween the advocates of free silver coinage
and those intending to be more conservative.
Undoubtedly the monthly purchases by the
government OF four million Ave hundred
thousand ounces OF silver, enforced under
that statute were regarded by those interested
in silver production as n 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 disappoint-
ing result has led to renewed and
persistent effort In the direction OF free silver
coinage Meanwhile, not only are the evil ef-
fects of the operation of the present law con
stantly aceumulating, but the result to which
It's execution must inevitably lead is hecom-
ing palpable to all who give the least heed to
financial subjects.
GIVING GOLD FOR SILVER.
This law provides that in payment for the
4500O10 ounces of silver bullion which the
Secretary Of the Treasury is commanded to
purchase monthly, there shall be issued treas
ury notes rodeemable 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 q nnf f9 In fha 70 D. u1ana sAF
the United States 10 maintain the two metals
on parity with each other upon the present
legal ratio or such ratio as may be provided
by law" This declaration 80 controls the
action Of the Secretary of the Treasury as to
prevent his exercising the discretion nominal
~ vested in him, IL by such action the parity
between gold and silver may be disturbed
ManifeStly a refusal by the secretary to pay
these treasury notes in gold If demanded
would necessarily result in their discredt and
depreciation as obligations payable only in
silver, and would destroy the parity between
the two metals by establishing dfscrlmina-
tion 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 one
hundred and forty-seven millions OF dollars.
While all out a very small quantity Of this
bullion remains unc0ined and without use
fulncss in the treasury, many Of the notes
given in its purchase have been paid in gold.
This is illustrated by the state
nent that between the first day OF
May, 1892, and the 18th day OF July 1893 the
notes of this kind issued IN payment for sill
yer bullion, amounted to little more than
So. $50 900 and that during the same period
about $40 600 0O0 were paid BY the treasury In
gold for the redemption of such notes.
INRoADs ON THE GOLD RESERVE.
The policy necessarily adopted OF paying
these notes In gold has not spared the gold
reserve of one hundred millions of dol
lars long ago set aside by the govern
ment for the redemption Of other notes,
for this fund has already been subject
TO the payment of new obligations, amounting
to about one hundred and fifty mil
lions OF dollars on account Of silver pur-
chases, and has as a consequence, for the first
time since its creation, been encroached upon.
EUROPE UP TO SNUFF.
We have thus made the depletion Of our
gold easy, and have tempted other and more
appreciatiVe nations to add 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. The ex-
cess of exports OF gold over It's imports for
the year ending June 30, 1893, amounted to
more than 3sI,5OO,OOO
Between the first day Of July and the if-
teenth day Of July. 1893, the gold coin and
bullion in our treasury decreased more thun
one hundred ana thirtytwo millions Of dol
lars while during the same period the silver
coin and bullion ia the treasury Increased
more than one hundred and fortyseVen
millions OF dollars Unless government
bonds are to be constantly issued ana sold to
replenish our exhausted gold, only TO be
again exhausted 1t is apparent that the OPP
erations Of the silver purchase law
now in force lead in the direction
Of the entire substitution OF sill
yer for the gold in the government treasury,
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 tho govern
ment must fail in its established policy 10
maintain the two metals on a parity with each
other Given over TO the exclusive use OF q
currency greatly deprecated according to
the standard Of the commercial world we
could no longer claim place among nations
OF the first class. nor could Our
government claim performance Of its obli-
CATION so far as such an obligation has been
imposed upon IT, 10 provide for the use Of the
Of its friends claim, silver ought to occupy
larger place in our currency and the curren-
cy Of the world through general international
cooperation and agreement 10 IS Obvious
that the United States viii not be IN posi-
tion TO gain a hearing in favor OF such an ar
ranRement so long as we are willing TO con
tinue our attempt to accomplish the result
single handed.
CAUSE or THE LACK OF Confidence.
The knowledge IN business circles among
our own people that our government cannot
make its fiat equivalent to intrinsic
value, nor keep inferior monoy on parity
with superior money by its own independent
efforts has resulted in such lack of conf
dence at home. in the stability Of currency
values that capital refuses its aid to new enter
prises while millions are actually Withdrawn
to become idle and unproduetiyo in the hands
of timid owners Foreign investors are equally