The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1893-08-11
THE PRESIDENTS MESSAGE.


titled to Money Good on Any Exchange
In the world-Depletion Of Gold Has
Been Easy-Calm Counsels Asked.
WASHINGTON, Aug. 9.-Presldent Cleve.
lands message was read in congress today.
Il Was as follows:
To the congress o: 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 a wise
and patriotic exercise Of the legislative
duty with which they solely 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 con-
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 unusual invitation to
safe investment aud with satisfactory as
surance to business enterprise, suddenly
financial distrust and fear have sprang up
on every side.
Numerous moneyed institutions have
suspended because abundant assets were
not Immediately available to meet
The Demands nf 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 sur
prised to find that the securities they Of
fer for loans, though heretofore satisfac-
tory, are no longer accepted.
Values supposed to be fixed are fast be-
coming conjectural, and loss and failure
have involved every branch of business.
l believe that these thin-s are princi
pally chargeable to congressional legisla-
tion 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, 1890, which
was the elimination of much agitation on
the subject involved, and which may he
considered truce, after a long strugg,,
between the advocates of free silver coin,
age and those intending to be more con
sentative.
Undoubtedly the monthly purchases by
the government of 100000 ounces of sill
yer, enforced under the statute, were re
garded by those interested in silver pro
duction as a certain guaranty of its in
crease in price.
The result, however, has been entirely
different, for Immediately following a
spasinodic 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 re-
newed and persistent effort in the direc
ton of free silver coinage.
Meanwhile, not only are the evil effects
of the operation of the present law con.
stantly accumulating, but the result tc
which it's 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 1850, 900 ounces Of silver bullion which
the secretary of the treasury is COM
manded to purchase monthly, there shall
be issued treasury notes, redeemable on
demand in gold or silver coin, at the
discretion of the secretary 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 may be pro-
vided by law"
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising the discretion nomi-
nally invested in him, if by such action
the parity between gold and silver may be
disturbed. Manifestly a refus al by the
secretary to pay these treasury notes in
gold, if demanded, would necessarily re-
suit in their discredit and depreciation as
obligations payable only in silver, and
would destroy the parity between the two
metals by estublishinga
Discrimination In Favor of Gold.
Up to the 18th day of July, 1893, these
notes had been issued in payment of silver
bullion purchased to the amount of more
than S147 ,O0O,0 GOO. While all but very
small quantity Of this bullion remains
uncoined and without usefulness in the
treasury, many of the notes given in its
pu chase have been paid in gold. This is
illustrated by the statement that between
May l, 1892, and July 10, 1898, the notes of
this kind issued in payment for silver
bullion amounted to a little more than
$54, 100000, and that during the same
period about $40, 100000 were paid by the
treasury in gold for the redemption of such
notes.
The policy necessarily adopted of paying
these notes in gold has not spared the gold
reserve of $780, 200, 900, long ago set aside
by the government for the redemption of
Bther notes for this fund has already been
Iubjected to the payment of new obliga-
lions amounting to about $3.50, 10000 on
account Of silver purchases aud as a con-
sequence for the first time since its crea-
ton been encroached upon. We have thus
made the
Depletion of Our Gold Easy
and have tempted other and more appre-
ciative nations to add it to their stock.
That the opportunity we have offered
has not been neglected is shown by the
large amounts of gold which have been re-
Gently drawn from our treasury and ex-
ported to increase the financial strength
Of foreign nations. The excess of exports
of gold over its imports for the year end
ing June 80, 1893, amounted to more than
$87, SOC, 600.
Between the first day of July, 1890, and
the 18th day of July, 1898, the gold coin
and bullion in our treasury decreased
more than $132, OO0, 900, while during the
same period the silver coin and bullion in
he treasury increased more than S147,-