The times. (Owosso, Mich.) 1882-1897, 1893-08-11

To This Law He Biames the Present Fin
ancial stringency-A Plea For Imme-
diate Action on Behalf of the Work.
ingman, "who Cannot Hoard His La
bor''-Danger Ahead IL the Law Is Not
Repealed.
WASHINGTON. Aug. S.--The following
is the full text of President Cleveland's
message, submitted to congress at neon
Tuesday:
To the Congress of the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together in eX.
ira session the peoples representatives in
congress, TO the end that through wise
and patriotic exercise of the legislative
duty with which they solemnly are charged
present evils may be mitigated and dan
gers threatening the future may be averted.
Our unfortunate financial plight is not
the result Of untoward events nor of condi-
ditions 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 manufacture, with usual
invitation to safe investment and with sat
isfactory assurance to business enterprise,
suddenly financial distrust and fear have
sprung up on every SIDE. Numerous
moneyed institutions have suspended be-
cause abundant assets were not lmme-
diately available to meet the demands of
frightened depositors. Surviving corpora
lions 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 Sc
curities they offer for loans, though hereto
fore satisfactory, are no longer accepted.
Values supposed to be fixed are fast be-
coming conjectural, and loss and failure
have invaded every branch of business.
L believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of sill
yer by the general government This leg
islation is embodied in u statute passed on
the 14th day of July, 1890, which was the
elimination of much agitation on the sub
ject involved, and which may he consid-
cred 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 4,5O0,O 900 ounces of sill
yer, enforced under that statute, were re
garded by those interested in silver produc-
a.
! price. The result, however, has been en-
| tirely 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 disappointing result has
| led to renewed and persistent effort in the
| direction of free silver coinage.
Blames the sherman Law.
Meanwhile not only are the evil effects
| of the present law constantly accumulat-
| ing, 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 the payment
| for the $500, 600 ounces of silver bullion
| which the secretary of the treasury is COM
manded to purchase monthly, there shall
! be treasury notes redeemable in gold or
silver coin, at the discretion of the secretary
| of the treasury, and said notes may be re-
issued. 1t is, however, declared in the act
to be 1.-The established policy of the United
states to maintain the two metals on a
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 him exercising the discretion
nominally vested in him, if by such action
the parity between gold and silver may be
| disturbed
Manifestly refusal by the secretary to
| pay UneSe treasury UOtGS III SOii IL uc-
| manded, would necessarily result in their
discredit and depreciation as obligations
| payable only i'll silver, and would destroy
the parity between the two metals by es-
| tablishing discrimination in favor OF
gold.
notes had been issued in payment of silver
bullion purchased, to the amount of more
| than S141 100000 While all but small
quantity of this bullion remains uncoined
and 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 LIST day
| of May, 1892, and the 18th day of July,
| 1893, the notes of this kind issued in pay
ment for silver bullion, amounted to a lit
tie more than $54 100000, and that during
the same period about $4,000 900 were
paid by the treasury in gold for the re-
sumption of such notes. The policy neces-
| sarily adopted of paying these notes in
| gold has not spared the gold reserve OF
| S10O,W0,OO0 long ago set aside by the gov
eminent for the redemption of other notes,
FOR this fund has already been subjected to
the payment of new obligations amounting
to about S150,000,000 on account of silver
| purchases, and has as "a consequence To-
the first time since its creation been en-
croached upon
Large Exports of Gold.
We have thus made the depletion Of on;
| gold easy, and have tempted Other Gre
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 beer
recently drawn from our treasury and eX
ported to increase che financial strength o
foreign nations. The excess of exports o.
gold over it's imports for the year ending
June 80, 1893, amounted TO more than SS7
500. coo.
Between the 1st day of July, 1890, ant
the 18th day OF July, 1893, the gold col,
and bullion IL orr treasury decreased NOR;
than $l32,000,CO, while during the Same
period the silver coin and bullion in tn,
treasury increased more than Sl47, 100000
Unless government bombs are to be con
stantly issued and sold TO replenish our ex
hausted gold, only 10 be again exhausted
it is apparent that the operation of tht
silver purchase law now i'm force leads IN
the direction of the entire substitution o
silver for the gold in the government
treasury, and that this must be followed
by the payment of all government obliga
tions in deprecated silver.
At this stage gold and silver must par
company and the government must fail II
its established policy to maintain the tw,
metals on a parity with each other. Oliver
over to the exclusive use of currenc,
greatly deprecated according to the stand