The state herald., 1893-08-18
HE DEMANDS REPEAL
THE PRESIDENTS MESSAGE.

kAO ShIh th6t tN9 0AuthAba INV - 4t8-
sponsibie for the Present Financial
Troubles and Urges Its Re.
peal without Suggest.
ing Any substitute. M
1.-THE existence Of an alarming and oxtraor.
binary business situation, involving the vel.
fare and prosperity Of all our people, has con.
strained me to call together in extra session
the peoples Representatives in Congress, to
the end that through wise and patriotic
exercise of the Legislative duty with which
they solely are charged, present evils may be
mltlgated and dangers threatening the future
may be avcrted.
"Our unfortunate financial plight 10 not the
result OF untoward events, nor Of conditions
related to our natural resources; nor Is 1,
traceablc to any Of the afllIctions which fire.
quen,ly check national growth and prosper.
ity. With plentcous crops, with abundan,
promise Of remuneratlvc production and
manufacture, with unusual Invitation TO safe
Investment aud with satisfactory ASSURANCE to
business enterprise, suddenly financial dis
trust and fear have sprung up on every side.
Numerous moncyed institutions have suspend
ed because abundant assets were not immedi.
atcly available to meet the demands Of fright
ened depositors, surviving corporations and
individuals are too content to keep h hand
| the money they nrc usually anxious loan,
and those engaged In Legitimate bnsfl ~ are
surprised to find that the securities th15 ofIeI
for loans, though heretofore satisfactory, ars
no longer accepted. Values supposed 70 b
fixed are fast becoming conjectural, and losl
and failure have invaded every branch of
business.
81 believe these things are principally charg.
cable to congressional legislation touching The
purchase and coinage Of silver by the general
government, This Legislation Is embodied ID
statute passed on the l4th day Of July,
1880, which was the elimination Of much
agitation on the subject involved, and which
may be considered truce after the long
struggle between the advocates Of free silver
coinage and those intending to he more con-
| sentative.
"Undoubtedly the monthly purchases by
the government Of 1900 900 ounces Of silver,
| forced under that statute, were regarded by
those interested in silver production as GER
tain guaranty Of Its increase In price. The
result, however, has been entirely different,
for Immediately following 4 spasmoilo 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 70 re-
ncwed and persistent Efforts in the direction
OF free silver coinage. Meanwhile, not only
arc the evil effects of the operation Of the
present law constantly accommodating, 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
$500, coo ounces Of silver bullion which the
secretary Of the treasury Is commanded TO
purchase monthly, there shall be Issued
treasury notes rcdeerable oh demand id gold
or silver coin, at the discretion OF the secre-
,ary Of the treasury, and that said notes may
be rcissucd. II Is, however, declared In the
act to be the established policy Of the United
Stntes to maintain the two metals upon q
parity with each other upon the present legal
ratio or such ratio as may be provided by
law
This declaration 80 controls the action Of
the secretary Of the treasury a to prevent his
exercising the discretion nominally vcsted In
him, II by such action the parity between
gold and silver may be disturbed. Manifcstiy
= refusal by the secretary TO pay these treas
ury notes In gold, II demanded. would nsces-
EARLY result In their discrcdit and deprecia-
tion ~ obligations payable only in silver, and
would destroy the parity between -vhe.two
metals by establishing . Discrimination In
favor Of gold.
up To the 18th day OF july, 1893, these notes
had been issued 10 payment Of silver bullion
purchased TO the amount Of morc than si47,-
100000. While all but very small quantity
OF this bullion remains uncolned and without
usefulness Ia the treasury, many Of the notes
given In II. purchase have been paid In gold.
This Is illustrated by the statement that be-
tween the Is, day of May, 1879, and the 18th
day ~ July, 1891 the notcs II this kind IT,
sued In payment for silver bullion amounted
to little more than s5i, 900, 0oo, and that dur
Ing the same period about $4,000, 900 we're
paid by the treasury In gold for the redemp-
tion of such notes
"Ihc policy necessarily adopted Of paying
these notes In gold has not spared the gold
reserve Of sioo, ooo. 90 long ago Get a.lde by
the government for the redemption OF other
notes, for this fund has already been subject
cd to the payment Of new obligations amount.
Ing TO about $50. Ooo, 900 on account Of silver
purchases, and has as n consequence. for tho
first time since iis creation, been encroachet
upon.
"Wo have thus made the depletion Of our
gold easy. aud have tempted other aud more
hppncciailvc nations to add II To their stock
That the opportunity We have offered has not
been neglected Ia shown by the large amount.
Of gold which have been recently drawn from
our treasury and exported 10 Increase the
financial strength Of foreign nations. The OK.
GEES Of exports Of gold over its Imports for
the year ending June 10, 1909, amounted 10
more than ~, 10000. between the let day
OF July. 1880. and the 18th day Of July, 1893,
thr gold coin and bullion In our treasury de.
creased more than ti3a, 900, 900, while during
the same period the silver coin and bullion Ia
the treasury increased more than d ~ ,0o0, 900.
Unless government bonds are 70 Be constantly
issued and sold To rcplenish our exhausted
gold, only to be Again exhausted, II 1, appar.
cnt that the operation Of the silver purchase
law row IN fores Leads IN the direction OF the
entire substitution OF silver for the gold In The
treasury and that this must be followed BY
the payment Of nil government obligations In
deprecated silver
AT this stage gold and silver must part
company and tho government must fail 10
Tia established policy 70 maintain the two
metals on a parity with each other. Given
over To tho exclusive nse Of currcacy great.
ly deprecated according 10 the standard Of
the commercial world, We could no longer
claim place among tho nations Of the nrst
class, nor could our government claim per.
formnner OF Ia obligation, 80 far % such an
obligation has been imposed upon Il 10 pro
vide for the use Of the people, tho beet and
safest money. H. M many Of iss friend.
clalm, silver ought 10 occupy a larger place
In a..A H. a 4