The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1893-08-16

rraordinary business situation, lnvoiF-
ing the welfare and prosperity OF all
our people, has constrained me to call
together, in extra session, the peoples
representatives in congress, to the end
that through wise and patriotic e1er-
else of tho legislative duty with which
they solely are charged the present evils
may be mitigated and the dangers
threatening the future may be averssd.
Our unfortunate financial plight is
not the result Of untoward events, nor
Of conditions related to our natural 70
sources; nor is it traceable to any Of the
Affections which frequently check nat
ural growth and prosperity. With
plenteous crops, with abundant prom
Use of remunerative production and
manufactures, with unusual invitation
to safe investment, and with sstisfacto-
~ assurance to business enterprise, sud-
denly a financial distrust and fear have
sprung up on every side. Numerous
moneyed institutions have suspended
because abundant assets were not I'M
mediately available to meet the demands
of frightened deposltors. Surviving
corporations and individuals are con-
tent 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 satls'
factory, are no longer accepted. Val
ues supposed to be fixed are fast becom-
ing conjectural, and loss and failure
have invaded every branch of business.
I 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 statute pass
ed on the 18th day of July, 1890, which
was the elimination Of much agitation
on the subject involved. and which may
be e,considered truce, after long strug-
gle between the advocates of free silver
coinage and those intending to be more
conservative.
Undoubtedly the monthly purchase
by the government of 4.500,000 ounces
of silver, enforced under that statute,
was regarded by those interested in sill
yer production as certain guaranty of
its increase in price. The result, how
ever, 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. The disappointing result has
led to renewed and persistent effort in
the direction of free silver coinage.
Meanwhile. not only are the evil ef-
fects of the operation Of the present
law constantly accumulating, but the
result to which its execution must ine-
vitably lead is becoming palpable to all
who give the least heed to financial
subjects. This law provides that in
payment for the 4,500,0O0 ounces of sill
yer bullion which the secretary oftreas-
ury is commanded to purchase monthly,
there shall be issued treasury notes re-
deemable on demand in gold or silver
coin, at the discretion of the secretary
of the treasury, and that said notes
may be re-issued. It is however, de-
cIared in the act to be "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 as may be provided by law"
This declaration 30 controls the action
Of the secretary of the treasury as to
prevent his exercising the discretion
norninally vested in him, if by such &C
ton the parity between gold and silver
may be disturbed. Manitestly a re-
fusal by the secretary topaz these treas
ury notes in gold, if demanded, would
necessarily result in their diseredit and
depreciation as obligations payable only
in silver. and would destroy the parity
between the two metals by establishing
g discrimination in favor of gold. Up to
the 18th day of July. 1898, these notes
had been issued in payment of silver
bullion purchases, to the amount of
more than $l47, 100000.
While all but very small quantity
of this bullion remains uncoined and
without usefulness in the treasury,
many Of the notes given in its purchase
have been paid in gold. This is illus.
trated by the statement that between
May 1st, 1892, and the 18th day of July,
1898, the notes of this kind issued in
payment for silver bullion amounted
to a little more than $54. 4.o0o, 600, and
that during the same period about $49,-
900, 900 were paid by the treasury in
gold for redemption Of such notes.
The policy necessarily adopted Of
paying these notes in gold has not
spared the gold reserve of 100000, 900
long ago set aside by the government
for the redemption Of other notes, for
this fund has already been subjected ).
the payment of new obligations amount
ing to about $3.50, ZOO, 900 on account of
silver purchases, and has as a conse-
quence, for he first time since it's crea-
ton, been encroached upon. We have
thus made the depletion Of our gold
easy, and have tempted other and more
appreciative nations to. add it to their
stock. Tha: 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
H...;,1 ,4.,o,+b ~ ForefoT r>1kfnrG