Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-08
EX 7 RA !
THE MESSAGE
The Presidents Advice
to Congress-
THE SILVER QUESTION.
The Repeal Of the Sherman
Law Urged.
THE FINANCIAL SITUATION
Charged to the Opera
ton of That Law.
PROMPT ACTION DEMANDED.
4 Brief But FOrClblG Document Sent to
Congress Today.
THE FINANCIAL SITUATION
Charged to the Opera.
ton of That Law.
PROMPT ACTION DEMANDED.
A Brief But FOrClhle Document Sent to
Congress Today.
70 the Congress Of the United States:

The existence Of an alarming and ex-
traordinary business situation, involving
the welfare and prosperity Of all our peo-
ple 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 legisla-
tive duty with which they solely are charg-
ed. present evils may be mitigated and
dangers threatening the future may be
averted
Our unfortunate financial plight Is not the
related to our natural resources; nor is 1t
traeeable to any of the Affections which
frequently check national growth and pros
perity. With plenteous crops. with abund-
ant promise of remunerative production
and manufacture with unusual invitation
to safe investment and with satisfactory
assurance to business enterprise. suddenly
financial distrust and fear have sprung up
on every side. Numerous moneyed insti-
tutions have suspended 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 en-
gagged 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 business.
Charged to silver LegislatfOn.
L 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 14th day of July, $780, which
was the elimination of much agitation 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 conserva-
tive.
Undoubtedly the monthly purchases by
the Government Of four million and rive
hundred thousand ounces Of silver enforced
under that statute. were regarded by those
interested In silver production as a certain
guaranty of its increase in price. The re-
suit. however, has been entirely 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 ard
persistent effort in the direction Of free sill
Yer coinage.
Meanwhile, not only are the evil effects
of the operation of the present law con-
stantiy accommodating, but the result to
which its execution must inevitably lead is
becoming palpable to all who give the least
heed to financial subjects.
Paid in Gold.
This law provides that in payment for the
four million and five hundred thousand
ounces of silver bullion which the Secretary
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 Secre-
tary Of the Treasury, and that said notes
may be reissued. 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 upon
the present legal ratio or such ratio as NAV
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. IL bv
such action the parity between gold and
silver may be disturbed Aanifestiy a re-
fusal 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 a dis
elimination in favor Of gold
Up to the 18th day of July, 1893. these
notes had been issued in payment OF silver
bullion purchases. to the amount of more
than one hundred and forty-seven millions
of dollars. While all but Il very small
quantity of this bullion remains uncoined
and without usefulness in the Treasury,
many of the notes given in it's purchase
have been paid in gold. This is :llustra ted
by the statement that between the 1st day
of May. 1892, and the 18th DAY Of July, 1sa3,
the notes Of this kind issued in payment