The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1893-08-19
PRESIDENTS MESSAGE.
Blame For All Trouble Laid
on Silver.

The CONGRESS OF The UNITED
STATEs-The existence of an alarm
ing and extraordinary business sit
uation involving the welfare and
prosperity of all our people has con-
strained me to call together in ex-
ira session the peoples representa-
tives in congress to the end that,
through wise, patrionic exercise of
the legislative duty with which they
solely are charged, the present evils
may be mitigated and the dangers
threatening the future be averted.
Our unfortunate financial plight is
not result of untoward eventsnor
of conditions related to our natural
resources nor is it traceable to any
of the Affections which frequently
check national growth and prosper
ity. With plenteous crops; with
abundant promise of remunerative
production and manufacture with
an unusual invitation to safe invest
ment, and with satisfactory assur-
ance to business enterprise, sudden
.iy financial distrust and fear have
sprung up on every side. Numer-
ons moneyed institutions have sus-
pended because their abundant as
sets were not Immediately available
to meet the demands of frightened
depositors. Surviving corporations
and individuals are content to keep
in hand money they are usually
anxious to loan, and those engaged
in legitimite business are surprised
to find that the securities they offer
for loans, though heretofore salts
factory, are no longer accepted.
Values supposed to be fixed are
fast becoming conjectural, and loss
and failure have invaded every
branch of business.
l believe these things are princi-
palIy chargeahle to congressional
legislation touching the purchase
and coinage of silver by the general
government. This legislation is
embodied in the statute passed the
18th day of July, 1890, which was
the elimination of much agitation
on the subject involved and which
may be considered as truce after
long struggle between the advo-
Gates of free silver coinage and those
intending to be more conservative.
Undoubtedly the monthly purchas-
es by the government of 100000
ounces of silver forced under that
statute were regarded by those in
terested in silver production as
certain guaranty of its increase in
price. The result, however, has
been entirely different, for imme-
diately following spasmodic and
slight rise of the price of silver,
there began fall after the passage
of the act and it has since reached
the lowest point ever known. The
disappointing result has led to re-
newed and persistent effort in the
direction of free silver coinage.
Meanwhile, not only are the evil
effects of the operation of the pres
ent law constantly accumulating,
but the result to which its execu
ton must inevitably lead, is becom-
ing palpable to all who give the
least heed to financial subjects.
This law provides that, in payment
for 4 100000 ounces of silver bull
lion which the secretary of the
treasury is commanded to purchase
monthly, there shall be issued treas
ury notes redeemable on demand in
gold or silver coin ct 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 on a parity 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 treas
ury as to prevent his exercising the
discretion nominally vested in him,
if, by such action, the parity be-
tween gold and silver may be dis
turbed. Manifestly, refusal by the
secretary to pay these treasury
notes in gold, if demanded, would
necessarily result in their discredit
and depreciation as obligations
payable only in silver and would
destroy the parity between the two
metals by establishing discrimina-
ton in favor of gold.
Up to the 18th day of July, 1898,
these notes have been issued in
payment of silver bullion purchased
to the amount of more than $147,-
100000 dollars, while all but very
small quantity of this bullion re-
mains uncoined without usefulness
in the treasury. Many of the notes
given in its purchase have been
paid in gold. This is illustrated
by the statement that between the
1st day of May, 1892, and the 10Th
day of July 1898, notes of this kind
issued in payment for silver bull
ion amounted to little more than
100000, and that during the
same period about $49,OOO,0OO was
paid by the treasury in gold for re-
demption of such notes.