Middletown transcript., 1893-08-12
so mr.. CLEVELAND SAYS
In HIS Message to the Extra Session
of Coneress-He Recommends Its
Prompt Repeal-Tarfff Reform on
the Lines OF the Chicago Platform
ssThe Poor workingman" Again.


hMf WNTNl fare and prosperit.
NGIl\\AN )I1I of all our people
Nk,SN&Z has constrained mi
@N~N to call together il
A extra session th'
peoples representatives in Congress. to thu
end that through a wise and patriotic exer
else of the legislative duty with which they
solely are charged present evils may b'
mitigated and dangers threatening the
future may be averted.
Our unfortunate financial plight is no
the result Of untoward events nor Of condi'
tions related to our natural resources, mol
is it treaceable to any of the affiiction;
which frequently check national growth
and prosperity. With plenteous crops
with abundant promises of remunerative
production and manufacture, with unusual
invitation to safe investment and with salts
factory assurance to business enterprise, sud
denly financial distrust and fear have
sprung up on every side. Numerous
moneyed institutions have suspended be-
cause abundant assets were not immedi-
ately available to meet the demands OF
frightened depositors. Surviving corpora
tions 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 secur-
tiles they offer for loans though heretofore
satisfactory are no longer accepted. Values
supposed to be fixed are fast becoming con-
jectural and loss and failure have involved
every branch of business.
cHARGEAHLE TO THE SHERMAN LAW.
I 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 statute
passed on the 14th day of July, 1890, which
was the elimination Of much agitation on
the subject involved, and which may be
considered truce, after long struggle,
between the advocates of free silver COIN
age and those intending to be more eonser-
vative.
Undoubtedly the monthly purchases by
the government of 100000 ounces of
silver. enforced under that statue, were
regarded by those interested in silver pro-
duction as certain guaranty of its increase
in price. The result, however, has been
entirely different, for Immediately follow
ing 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 persistant effort in
the direction Of free silver coinage.
Meanwhile, not only are the evil effects
of the operation of the present law con-
stantly accumulating, but the result to
which its execution must inevitably lead
is becoming palpable to all who give the
least heed to financial subjects.
HOW PARITY" Is MAINTAINED.
This law provides that in payment for
the 4;5O0,0O0 ounces of silver bullion which
the Secretary ofthe Treasury is commanded
to purchase monthly there shall be issued
Treasury notes redeemable on demand in
ROIQ OF SllNCl COln az tuG QlSCTGL1On Oh the
Secretary of the Treasury, and that said
notes may be reissued. 1t is, however, de-
clared in the act to be 'the established
policy of the United States to maintain the
two metals provided by law This declar-
alton 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 Treas
ury notes in gold, if demanded, would
necessarily result in their discredit and de-
probation as obligations payable only in
silver and would destroy the parity be-
tween the two metals by establishing dis
elimination in favor of gold.
Up to the 18th day Of July, 1893, these
notes had been issued in payment of silver
bullion purchased to the amount of more
than $147, 100000 While all but a very
small quantity of this bullion remains un-
coined and without usefulness in the Treas.
ury 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 18th day of July, 1898,
the notes of this kind issued in payment
for silver bullion ammounted to little
more than S54 ,OOO, 900, and that during the
same period about $49. .OOO, 900 were paid by
the Treasury in gold for the redemption Of
such notes:
GOLD RESERVE NOT SPARED.
The policy necessarily adopted of paying
these notes in gold has not been spared the
cold reserve of s1OO, 900 900 long ag set aside
bv the government for the redemption of
other notes, for this fund has already been
subjected to the payment of new obligations
amounting to about $15O, 900, 600 on account
of silver purchases, and has as conse-
auence, for the first time since its creation,
been encroached upon. -
We have thus made the depletion of our
gold easy and have tempted other and more
appreciative nations to add it to their stock.
That the opportunity we have offered has
not been neglected is shown by the large
amounts Of gold which have been fire.
ouentIy drawn from our Treasury and ex-
norted to increase the financial strength OF
foreign nations. The excess of exports Of
eold over its imports for the year ending
June 30, 1893. amounted 70 more than
ss7, $4,000.