The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1893-08-16
President Cleveland Recommends
That the Financial Troubles
Receive the First
Attention.
The Tariff Reform Is an Important
Subject, But the Sherman Law
Must be Repealed First.
A DEMOCRATIC DOCUMENT.

is the full text of the Presidents mes
sage: =
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
in extra session the peoples representa-
tives in congress, to the end that with
their 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 con-
ditions related to our natural resources.
Nor is it traceahle 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 and with satisfactory as
surance to business enterprise, suddenly
financial distrust and fear have sprung up
on every side.
Numerous moneyed institutions have
suspended because abundant assets were
not Immediately available to meet the
demands of the frightened depositors; sur
viving corporations and individuals are
content to keep in hand the money they
are usually anxious to loan, and those en-
gagged in legitimate business are surprised
to find that the securities they offer for
loans, though heretofore satisfactory, are
no longer accepted. Values supposed to
be fixed are fast becoming conjectural,
and loss and failure have invaded every
branch OF business. Ibelieve these things
are principally chargeable to congress
ional legislation touching the purchase
and coinage of silver by the general gov
eminent.
The legislation is embodied in a statute
passed on the 14th day of July, 1890,
which was the elimination of much agi-
tation 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 be
more conservative.
Undoubtedly the money purchases by
the government of $500, 900 ounces of sill
yer, enforced under that statute, were re-
garded by those interested in silver pro-
duction as certain guarantee of its in
crease 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 pas
sage OF the act, and has since reached the
lowest point ever known. The disap-
pointing result has led to renewed and
persistent effort in the direction of silver
coinage.
Meanwhile, not only are the evil effects
OF the operation of the present law con-
stantly accommodating, but the result to
which its execution must inevitable lead
is becoming palpable to all who give the
least heed to financial subjects.
This law provides that, in payment for
the 100000 ounces of silver bullion
which the secretary Of the treasury is
commanded 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 Treas
ury, and that said notes may be re-issued.
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 on the present le-
gal ratio or such ratio as may be provided
by law"
This declaration so controls the action
OF the Secretary of the Treasury as to pre-
vent his exercising the discretion nomi-
nally vested in him, il by such action the
parity between gold and silver may be
J disturbed. Manifestly refusal by the
Secretary to pay these treasury notes in
gold, il 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 establishing discrimination
in favor of gold.
Up to July Is, 1898, these notes had
been issued in payment of silver bullion
purchases TO the amount of more than
$l4700O,000, 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 illustra-
ted by the statement that between the
first day Of July, 1892, and the fifteenth
day OF July, 1898, the notes of this kind
issued in payment for silver bullion
amounted to little more than $4,000
900 and that during the same period
about 100000 900 were paid by the treas
ury in gold for the redemption OF such
notes.
The policy necessarily adopted for pay
ing these notes in gold has not spared the
gold reserve of 500, 900, 900 long ago set
aside by the government for the redemp-
ton OF other notes, for the fund has al