The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1893-08-10
THE PRESIDENTS MESSAGE.
He Presents to the Congress in Terse
and Vigorous Words His Rec
concentrations for FL
nouoiol RoJiof


concentrations for FL
nancial Relief.
To the Congress Of the United States
The existence of an alarming and
extraordinary business situation, in
Yolving the welfare and prosperity of
all our people, has constrained me to
call together in extra session the
peoples representatives in Congress
to the end that through a wise and
patriotic exercise Of the legislative
duty with which they solely are
charged, present evils may be mitigated
and dangers threatening the future may
be averted.
OUR SAD PLIGHT.
Our unfortunate financial plight is
not the resell of untoward events nor
of conditions related to our natural
resources, 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 universal invitation to
safe investment, and with satisfactory
assurance to business enterprise,
suddenly financial distrust and fear
have sprung up on every side. Numer-
Gus moneyed institutions have suspen-
ded because abundant assets were not
Immediately available to meet the
demands 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 be fixed are fast
becoming conjectur and loss and
failure have invaded every branch of
business.
THE SHERMAN ACT.
1 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 agitation on the subject involved,
and which may be considered truce,
after long struggle, between the adj
vocates of free silver coinage and those
intending to be more conservative
Undoubtedly the monthly purchases
by the government of four million and
FIVE hundred thousand ounces of silver,
enforced under that statute, were
regarded by those interested in silver
production as certain guaranty of its
increase in price. The result, however,
has been entirely different, for i'm
mediately following 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 in
the direction of free silver coinage.
Meanwhile, not only are the evil eff.
fects of the operation of the present
law constantly accumulating, 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 and the
Treasury is commanded to purchase
monthly, there shall be issued treasury
notes redeemable on demand in gold OF
silver coin, at the discretion of the
Secretary of the Treasury, and that
said notes may be reissued
NOTES MUST BE PAID IN GOLD.
It is, however, declared in the act to
be "the established policy of the
United States to 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 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
treasury notes in gold, if demanded,
would necessarily result in theil
discredit and depreciation as obligations
payable only in silver, and would
destroy the parity between the two
metals by establishing a discrimination
in favor of gold.
THEY DRAIN THE TREASURY.
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 one hundred an6
forty-seven millions of dollars. While
all but a very small quantity Of this
bullion remains uncoined and withou
usefulness in the Treasury, many o
the notes given in its purchase hav,
been paid in gold. This is illustrated
| by the statement that between the
first 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 thar
fifty four millions of dollars, and tha
during the same period about forty
nine millions of dollars were paid b,
the Treasuryin gold for the redemption
of such notes.
The policy necessarily adopted o
| CuVoC AOtCo III LIDS III
spared the gold reserve of one hundred
millions Of dollars, long ago set aside
by the government for the redemption
Of other notes, for this fund has alread,
been subject to the payment of new
obligations amounting to about on
hundred and fifty millions of dollars OF
account of silver purchases, and has al
a consequence for the first time since
its creation, been encroached upon
We have thus made the depletion o
our gold easy, and have tempted othe
and more appreciative nations to ad,
to their stock. That the opportunit,
we have offered has not been neglected
is shown by the large amounts of golt
which have been recently drawn from
our Treasury and exported to increas'
the financial strength of foreign
nations. The excess of exports O
gold over the imports for the yea
ending June 3Oth, 1898, amounted tt
more than eighty-seven and a hal
millions of dollars.