The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-09
THE PRESIDENTS MESSAGE.
REPEAL OF THE SHERMAN PUR-
CHASING ACT RECOMMEHDED.

The Law Has Been Condemned by Three
Years. Disastrous Experience aud Should
he Removed from tho Statute Books ne
Soon n. Possiblr-Dircussion of the FIunn-
cini Trouble nud lite Cause.-The Way Must
lie Cleared ut Once for Tariff Reform.
WASHINGTON. Aug. a-The following is the
text OF the Presidents message transmitted
to Congress to-day:
10 n, farorea Of N, Unif,d States
The existence OF an alarming and extraor-
binary business situation, involving the well
fare and prosperity Of all our people. has con-
strained mo to call together in extra session
the peoples representatives In Congress. to
the end that through wise and patriotic ex.
ercise OF the legislative duty with which they
solely are charged. present evils may be miti-
gated and dangers threatening the future may
De averted.
Our unfortunate financial plight Is not the
result OF untoward events nor OF conditions
related to our natural resources: nor is It
traoeabe to any Of the Affections which fire.
quently check national growth and prosperity.
With plenteous crops. with abundant promise
Of remuneratlve production and manufacture.
with unusual invitation to safe Investment
and with satisfactory assurance TO business
enterprise. suddenly financial distrust and
fear have eprung up on every side. Numerous
moncyed institutions have suspended because
abundant assets wore not imm avail
able to meet the demands Of frightened de-
positors. Surviving corporations and indl-
yiduals are content to keep In hand the money
they are usually anxious to loan. and those
engaged in legitimate business are surprised
10 find thntthe securities they offer for loans.
though heretofore satisfactory. are 20 longer
accepted. Values supposed to BIO fixed are
fast becoming coniectural. and loss and fall
ure have involved every branch OF business.
THE CAUSE OF THE TROUBLE
Ibelieve these things are principally charge
able to Congressional legislation touching tho
purchase and coinage OF silver by tho general
Government. This legislation is embodied in
. statute passed on the 14th day OF July. 1880.
which was tho elimination OF much agitation
on tho subject involved, and which may be
considered truce, after long struggle. be-
tween the advocates OF free silver coinage and
those intending to be m ore conservative.
Undoubtedly the monthly purchases by tho
Government OF 1900 900 ounces Of silver, en-
forced under that statute. were regarded by
those interested in silver production % cor
tain guarantee OF its increase in prico.
Tho result. however. has been entirely dif-
ferent. for imm ediately following q spasmo dio
and slight RISE the price OF silver began to
fall after tho 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
Meanwhile. not only are the evil effects Of
the operation Of the present law constantly
accommodating. but the result to which its
execution must inevitably lead 10 becoming
pnlpable to all who give the least heed to
financial subjeota This law provides that
in payment for the 100000 ounces Of sill
yer bullion which the Secretary OF the
Treasury 10 commanded to purchase monthly
there shall b issued Treasury notes rsdeema-
BILE on demand in gold or silver coin. at the
discretion Of tho Secretary Of the Treasury.
and that said notes may be reissued. 1t Is.
however. declared In the act to be the estab-
lished policy OF tho United States to maintain
the two metals on Q parity with each other
upon the present legal ratio, or such ratio as
may be provided by law"
THE SECRETARY OF THE TREASURY HAMPERED.
This declaration 90 controls the action OF
the Secretary OF the Treasury as to prevent
his exercising the discretion nominally vested
In him. II by such action the parity between
gold and silver may be disturbed. Manifestly
arsiusal by the Secretary to pay these Treas
ury notes In gold. IL demanded. would neces-
sarily result in their dlscredit and doprecia.
don as obligations payable only IN silver. and
would destroy the parity between the two
metals by establishing q discrimination 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 S147.-
100000. 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 statement that be-
tween the 1st day OF May. 1892. and the 18th
day OF July. 1893. the notes Of this kind issued
In payment for silver bullion amounted to q
little more than $54.OOO.000 and that during
the same period about S40.0O0O0O were paid
by the Treasury In gold for the redemption OF
such notes.
The policy nee essarily adopted OF paying
these notes In gold has not spared the gold re-
serve OF lOO.OOO,00O long ago set aside by the
Government for the REDEEM ption OF other notes.
Tor this fund has already been subjected to the
payment ofnow obligations amounting to about
sloo'ooo.ooO ON account Of silver purchases,
and las, as consequence. for the first time
since its creation. 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 wo have offered has
not been neglected is shown by the large
smounts OF gold which haye been re-
Gently drawn out from the Treasury
and exported to increase the hnan-
cial strength OF foreign nations. The ex-
cess oil exports of gold over its imports I ,r
the year ending June 80. 1888. amounted IN
moro than eighty seven and half millions of
dollars. Between the LIST day OF July. 1sy0
and the 18th day Of July. 1863. the gold coin
and bullion In our Treasury decreased mora
than one hundred and thirty-two millions Of
dollars. while during the same period the