Morning journal and courier., 1893-08-09
CLEyELAND,s MESSAGE.

CLEVEAAND5S M ESSAVEs The President Sends in His Recom- | mendatiOns to COngress-He is In Favor of the Repeal of the sherman Law, and Says That Silver Legisla- ton Is the Cause of the Present Financial Crisis-There is no Doubt That Tariff Reform is Urgent Hut 1t Must Wait Until the Present Situa- ton i'm Financial Circles is Over come. WASHINGTON, Aug. 8.-President Cleve- land sent this message to congress to-day: To 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- pie. has constrained me to call together an extra session of the peoples representatives in congress, to the end that through vice and patriotic exercise of the legislative duty with which they solely are charged, pres ent evils may be mitigated and dangers threatening the future may be averted.
 FINANCIAL SITUATION EXCEPTIONAL.
 Our unfortunate financial plight is not the result of untoward events nor of con- dftfons related to our natural resources, nor is 1t traoeable to any of the aff1tcfions which frequently check national growth and prosperity.
 With plenteous crops, with abundant promise of remunerative production and manufacture, with unusual invitation to safe investment and with satisfactory as- surance to business enterprise, suddenly financial distrust and fear have sprung up on every side. Numerous moneyed 1n- stitutions have suspended because abund- ant assets were not immediately available to meet the demands of the frightened depositors.
 BUSINESS CREDIT WEAKENED. 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 sur prised to find that the securities they offer for loans, though heretofore satisfac- tory, are no longer accepted. Values sup posed to be fixed are fast becoming con- jectural, and loss and failure have involved every branch of business.
 LEGISLATION TO BLAME.
 believe these things are principally chargeable to congressional legislation touching the purchase and coinage of sil- yer by the general government.
 THE SHERMAN LAW.
 This legislation is embodied in statute passed on the filth day of July, 1890, which was the culmination of much agita- tion on the subject involved, and which may be considered truce, after long struggle, between the advocates of free silver coinage and those intending to be more conservative.
 Undoubtedly tho monthly purchases by the government of 4,50O, ,O0O ounces of garded by those interested in silver pro- duction as 6 certain guaranty of it's in- crease in price.
 THE FALL IN SILVER. The result, however, has been entirely different, for immediately following a spasmodic and slight rise, the price of sill yer 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 ir the direction of free silver coinage. EVIL EFFECTS OF THE LAW. Meanwhile not only are the evil effect: of the operation of the present law con | stantly accommodating, but the result tt which it's execution must inevitably lead ii becoming palpable to all who. give the leas heed to financial subjects.
 ITS PROVISIONS.
 This law provides that in payment fo | the four million and five hundred thou sand ounces of silver bullion which tn secretary of the treasury is commanded t. purchase monthly, there shall be issue' treasury notes redeemabIe on demand il gold or silver coin, at the discretion 0 the secretary of the treasury, and tha said notes may be reissued. It Is, howev CT, declared in the act to be ''the estat lished policy of the United States t maintain the two metals on a parity wit each other, upon the present legal ratio or such ratio as may bs provided by law. , TREASURY HAMPERED BY THE LAW. This declaration so controls the actio of the secretary of the treasury to prt vent his exercising the discretion nomina ly vested in him, if by such action th parity between gold and silver may disturbed
 Manifestly, refusal by the secretary { pay these treasury notes in gold, if d manded, would necessarily result in the !. discredit and depreciatio as obligation payable only in silver, and would destre the parity between the two metals by @ tablishing 8 discrimination in favor gold.
 Up to the 18th day of July, 1893, the, ] notes had been issued in payment of silv, bullion purchases to the amount of mol than $147, 100000.
 While ail but very small quantity this bullion remains uncoined and witho1 | usefulness in the treasury, many of u mates given in its purchase have been pal in gold.
 GOLD RESERVES NOT SPARED.
 The policy necessarily adopted of payin these notes in gold has not spared the Sol reserve of $1O0,O00, ,000 long ago set asio by the government for the redemption ( other notes, for this fund has already bee subjected to the payment of new oblig tions, amounting to about $150, ,0O0, ,000 c account of silver purchases, and as col sequence for the first time since it's creatic been encroached upon.
 OTHER NATIONS PRoFITED. We have thus made the depletion of o1 gold easy, and have tempted other sn more appreciative nations to add 1t to the stock. That the opportunity we have o fered has not been neglected Is shown | the large amounts of gold which have bee recently drawn from our treasury, an exported to increase the financial strengt of foreign nations. The excess of expor of gold over it's imports for the year enc ing June 30, 1893, amounted to more tha $87, 800 00O
 THE SILVER DANGER.
 Between July 1, 1890, and July 15, 1s9; the gold coin and bullion in our treasur decreased more than $132, ,00O, 900, whi during the same period the silver coin an bullion in the treasury increased more tha $147, ,OOO, ,OOO. Unless government bono are to be constantly issued and sold to r plenish our exhausted gold, only to t again exhausted, it is apparent that the o) eration of the silver purchase law now i force, leads in the direction of the entil substitution of silver for the gold in tt government treasury. and that this mul be followed by the payment of all goverl ment obligations in depreciated silver.
 At this stege gold and silver must pa company and the government must fail i it's established policy to maintai the two metals on a parity with eac other. Given over to the exclusive use ( a currency greatly depreciated acoordin to the standard of the commercial work we could no longer claim 8 place anon nations of the first class, nor could or government claim performance of it's ol ligations, SO far as such an obligation h. been imposed upon it, to provide for u uaa If tha naonla tho hast and oofa,