Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-08-11
PRESIDENTS MESSAGE,
HIS VIEWS ON THE PRESENT FINAN-
CIAL SITUATION.

believes To Be Responsible for the
Trouble and Earnestly Recommends It's
Repeal-He Refers Incidentally to the
Tariff but Considers the Financial Cues
tion Paramount.
WASHINGTON, Aug. s-President Cleve-
lands message to congress in extra session
was read in both houses and is as follows:
To THE CONGRESS OF THE UNITED STATES:
The existence of an alarming and extraordi-
nary business situation, involving the welfare
and prosperity OF all our people. has con-
strained me to call together In extra session
the peoples representatives in con-
gress, to the end that through
wise and patriotic exercise Of
the legislative duty with which they
solely are charged, present evils may be miti.
gated and dangers threatening the future may
be averted.
Our unfortunate financial plight is not the
result OF untoward events nor OF conditions re-
lated to our natural resources; nor is it trace.
able to any of the Affections which frequently
check national growth and prosper.
ity. With plenteous crops. with abund-
ant promise of remunerative produc-
ton and manufacture, with unusual
invitation to safe investment and with salts
factory assurance to business enterprise, sud-
denly financial distrust and fear have sprung
up on every side. Numerous moneyed institu.
tons have suspended because abundant assets
were not Immediately available to meet the de-
mands Of frightened depositors. Surviving
corporations and individuals are content to
keep i'll hand the money they are usually anx-
lous to loan, and those engaged in legitimate
business surprised to find that the securities
they offer for loans though heretofore salts
factory, are no longer accepted. Values sup
posed to be fixed are fast becoming coniectur-
al, and loss and failure have invaded every
branch of business
believe these things are principally charge
able to congressional legislation touching the
purchase and coinage of silver by the general
government. This legislation is embodied in
a statute passed the 18th dayt of
July, 1890 which was the elimination of much
agitation 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 the monthly purchases by the
government of 100000 ounces of silver, en-
forced under that statute, were regarded by
those interested in silver production as a GER
tain guaranty of its increase in price. The
result however, has been entirely different for
Immediately following 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. Mean
while, not only are the evil effects of the OPP
Grafton OF the present law constantly &C
cumulatlng, but the result to which it's execu-
ton must inevitably lead is becoming palpable
to all who give the least heed to financial
subjects.
This law provides that in payment for the
4bO0, O0 ounces of silver bullion which the sec.
rotary OF the treasury is commanded to pur-
chase monthly there shall be issued treasury
notes fedeemable on demand in gold or silver
coin at the discretion of the secretary of the
treasury and that said notes may be reissued.
It is, however, declared in the act to be 1.-THE
established policy of the United States to
maintain the two metals on parity with
each other upon the present legal
ratio OF such ratio may be provided by
law" This declaration controls the
action of the secretary of the treasury as to
prevent his exercising the discretion nominal
ly vested in him, if by such action the parity
between gold and silver may be disturbed
Manfestly a refusal by the secretary to pay
these treasury notes in gold, if demanded,
would necessarily result in their discredit and
depreciation as obligations payable only in sill
yer, and would destroy the parity between
the two metals by establishing a discrimina-
ton 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 FORTY
seven millions of dollars. While all but 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 illustrated by the state
ment that between the LIST day of May, 1892 and
the 18th day of July, 1893, the notes of this kind
issued in payment for silver bullion amounted
to little more than fifty four millions of dollars
and that during the same period about FORTY
nine millions of dollars were paid by the treas
ury 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
Sl00, 100000 long ago set aside by the govern
| ment for the redemption of other notes, for
| this fund has already been subjected to the
payment Of new obligations amounting to
| about one hundred and fifty millions of dollars
on account Of silver purchases, and has as a
consequence, 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 ap-
preciative 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 recently drawn from
our treasury and exported to increase the
| financial strength Of foreign nations. The ex-
cess of exports of gold over it's imports for
| the year ending June 80, 1899, amounted to
more than eighty seven and half millions of
| dollars. Between the 1st day of July, 1890,
and the 18th day of July, 1893, the gold coin
and bullion in our treasury de-
creased more than one hundred and thirty
| two millions O. dollars, while during the same
period the silve coin and bullion in the treas
ury increased more than one hundred and
forty seven millions of dollars. Unless govern
| ment bonds are to be constantly issued and sold
| to replenish our exhausted gold, only to be
again exhausted, it is apparent that the opera.
| zion of the silver purchase law now in force
leads in the direction of the entire substitution
of silver for gold in the government treasury,
| and that this must be followed by the payment
| of all government obligations in deprecated
silver.
At this stage gold and silver must part COM
| pany and the government must fail in its es-
| tablished policy to MAINTAIN the two metals on
| parity with each other. Given over to the
| exclusive use Of a currency greatly depreciat
| ed according to the standard of the CONNER
| cial world, we could no longer claim a place
| among nations of the first class, nor could our
government claim performance of it's bbliga-
| tions, so far as such obligation has been i'm
posed upon 1t, to provide for the use Of the peo
| pie the best and safest money. If, as many
Of its friends claim, silver ought to
| occupy larger place in our currency and the
| currency of the world through general inter.
l national cooperation and agreement it Is obvi-
| Gus that the United States will not be in posi-
| ton to gain a hearing in favor of such an ar
| Tangement so long as we are willing to con.
| tinue our attempt to accomplish the result
| single handed.
| The knowledge in business circles among our
| own people that our government cannot make
/ its fiat equivalent to intrinsic value, keep
| inferior money on parity with superior money
| by its own independent efforts. has resulted
| in such a lack of confidence at home in
| the stability Of currency values that capital
| refuses its aid to new enterprises while
| rnillions are actually withdrawn from the