The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-08-09
THE PRESIDENTS MESSAGE.
Unconditional Repeal of the
Sherman Law Recommended.
GOLD FLAVOR THROUGHOUT.
No Other Measure Commended as a
Substitute.
The Document Throughout Deals Ex-
cluslvely with Finances-Tarif Reform
Must Wait-How the Message Was
Rcceived-views Are Various.

WASHINGTON, Aug. S.-The president
today sent the following message to Con-
gress:
To the Congress OF the United States:
The existence of an alarming and ex-
traordinary business situation, involving
the welfare and prosperity OF our people,
has constrained me to call together, in
extra session, the peoples representatives
in Congress, to the end that through the
wise and patriotic exercise of the legisla-
tive duty with which they solely are
charged, the present evils may be miti-
gated and the dangers threatening the
future may be averted.
Our unfortunate financial plight is not
the result of any untoward events, nor
of conditions related to our natural re-
sources; nor is it traceable to any of the
Affections which frequently check the
national growth and prosperity. With
plenteous crops, with an abundant
promise of remunerative production
and manufacture with unusual
invitation to safe investment and with
satisfactory assurance to business enter
prise, suddenly financial distrust and fear
have sprung up on every side. Numerous
moneyed institutions have suspended,
because abundant assets were not imme-
diately available to meet the demands of
frightened depositors. The surviving cor
porations 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 be
fixed are fast becoming conjectural, and
loss and failure have invaded every branch
of busiuess.
THE LAW OF 1890.
believe these things are principally
chargea6le to congressional legislation
touching the purchase and coinage of sill
yer 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 long
struggle between the advocates of free
silver coinage and those intending to be
more conservative. Undoubtedly the
monthly purchases by the government of
Jour million five hundred thousand
ounces of silver, forced under that statute
were regarded by those Interested in the
silver production as certain guaranty of
its increase in price. The result, however,
has been entirely different; for immsdi-
ately following the 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 re-
Dewed ana persistent effort in the direc-
ton of free silver coinage.
Meanwhile, not only are the evil effects
of the operations of the present law con-
stantly accommodating, but the result to
which its execution must inevitably lead
are becoming palpable to all who give the
least heed to financial subjects. The law
provides that in payment for the 4. 800, 900
ounces of silver bullion which the secre-
tary of the treasury is commanded to
purchase 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 reissued. 1t is, however,
declared in the act TO be sfthe established
policy of the United States to maintain
the two metals upon parity with each
other upon the present legal or such ratio
as may be provided by law
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising the discretion nomi-
nally vested in him, if by such action the
parity between gold and silver may be
disturbed. Manifestly the refusal by the
secretary to pay these treasury notes in
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 discrimination in
favor OF gold.
THE GOLD RESERVE.
Up to The 18th day OF July, 1898, these
notes had been issued in payment of the
silver bullion purchased to the amount OF
more than S147, COO, COO. While all but q
very small quantity OF this bullion re-
mains uncoined and without usetu lness
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 LIST day OF May, 1892, and the
18th day of July, 1893, the notes of this
kind issued in payment for silver bullion
amounted to little more than S54, 600 600,
and that during the same period about
S49, DOC, 600 were paid by the treasury IN
gold for the redemption of such notes.
The policy necessarily adopted, OF paying
these notes in gold, has not spared the
gold reserve OF 500, 900, coo, long ago set
aside by the government Tor the redemp-
ton OF other notes, for this fund has al
ready been subjected to the payment OF
new obligations amounting to about
S150, 900 900 on account of silver purchases,
time since its creation, been encroached
upon. We have thus made depletion OF
our gold easy and have tempted other and
more appreciative nations to add ii 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
excess of exports of gold over its imports
for the year ending June 80, 1893, amounts
to more than SS7, 500, 600. Between the
1st day of July, 1890, and the 10Th day oil
July, 1888, the gold coin and bullion in
our treasury decreased more than Sl32,
100000, while during the same period the
silver coin and bullion in the treasury
increased more than $147 100000
SUBSTITUTING SILVER FOR GOLD.
: Unless government bonds are to be con.
ssantly issued and sold to replenish our
exhausted gold, only TO be again ex.
hausted, it is apparent that the silver
purchase law now in forct leads in the eli
rection of the entire substitution of silver
for gold in the government treasury, anc
that shis must be followed by the paw.
ment OF all government obligations in de-
preciated silver.
at this stage gold and silver must par
company and the government must TAI
in It's established policy to maintain the
two metals on parity with each other
Given over to the exclusive use of a cur.
rency greatly deprecated according to the
standard OF the commercial world, W.
could no longer claim q place among tn.
nations of the first class nor could oul
government claim the performance OF it!